Vice President Kashim Shettima has emphasised the need for robust human and technological capital development to harness the burgeoning $200 billion global hydrogen market.
Nigeria is positioning itself to capture a significant share of the global hydrogen market, projected to be worth $200 billion by 2030.
The country’s abundant renewable energy resources, particularly solar and wind, are seen as key assets in this transition.
Speaking at the maiden Nigeria Conference on Hydrogen with the theme: ‘Building a Hydrogen Economy for Nigeria’ in Abuja on Tuesday, Shettima highlighted Nigeria’s potential as a key player in hydrogen production, leveraging its vast renewable resources.
The vice president who was represented by Special Adviser to the President on Power Infrastructure in the Office of the VP, Sadiq Wanka, said that developing pilot programmes across different applications would be a key step in building the in-country expertise to tap into the vast global hydrogen economy.
Shettima said that regional collaboration with other countries in the sub-region and the continent on the adoption of hydrogen would support its viability domestically.
According to him, collaborations with development partners and other countries more advanced in their hydrogen journey was also important to ensure knowledge transfer.
”The investments required in building the infrastructure for hydrogen transport and storage are vast and can only be driven by the private sector.
”Building our vast natural gas pipelines with future hydrogen transport in mind will significantly reduce these costs and help to attract capital,” Shettima said.
On his part, the minister of state, Petroleum Resources (Gas), Ekperikpe Ekpo, said the country, as Africa’s largest economy and most populous nation, had an energy demand that was expected to double by 2050.
According to him, this is not just an ambition, it is a strategic imperative that is aligned with President Bola Tinubu’s vision for the country.
The minister said that harnessing the country’s resources to produce green hydrogen could play a significant role in reducing emissions and supporting decarbonisation of sectors such as transport, power generation, and heavy industry.
Ekpo said the country had committed to achieving net-zero emissions under the Paris Agreement.
”Hydrogen, particularly green hydrogen produced using our abundant renewable energy resources, and blue hydrogen leveraging our natural gas reserves with carbon capture presents a unique opportunity to bridge these seemingly competing objectives.
”Our natural gas reserves of 206 trillion cubic feet position us perfectly for blue hydrogen production. Our significant solar potential, with about 2,000 hours of sunshine annually, provides an ideal foundation for green hydrogen,” he said.
Permanent secretary, Ministry of Petroleum Resources, Nichola Agbo Ella emphasised the potential for hydrogen to drive economic growth and energy security, aligning with global trends towards cleaner energy sources. Investments in hydrogen technology could also create jobs and enhance Nigeria’s role in the emerging green energy economy, as it seeks to leverage its natural resources for sustainable development.
.According to the International Energy Agency (IEA), global hydrogen demand was approximately 94 million metric tons in 2022, with projections estimating that this could reach between 500 and 700 million metric tons annually by 2050, if net-zero ambitions are to be realised. In this context, Ella said the potential for hydrogen to decarbonise hard-to-abate sectors such as heavy industry and long-haul transport presents a significant opportunity.
He noted that the country could leverage its position as the 9th largest gas producer globally, holding an estimated 209 trillion cubic feet (TCF) of proven reserves to develop blue hydrogen as an interim step.
Ella said the conference was aimed at initiating concrete actions and strategic dialogues that would help the country pivot from a hydrocarbon-dominated economy to an integrated, sustainable energy mix that incorporated hydrogen.
”The National Conference on Hydrogen provides a platform for critical discussions on the technology, policy, financing, and infrastructure necessary to develop a robust hydrogen economy.
”The global market for hydrogen technologies is projected to grow exponentially, reaching over $200 billion by 2030.
”For Nigeria to capture a share of this expanding market, significant investments must be made in upgrading infrastructure, building electrolysers for green hydrogen production, and creating enabling policy frameworks,” he said.
Recent studies suggest that the global adoption of hydrogen could reduce CO2 emissions by up to six gigatons annually by 2050.
For Nigeria, integrating hydrogen into our energy ecosystem can significantly contribute to achieving our target of reducing carbon emissions by 20 per cent by 2030, as outlined in our Nationally Determined Contributions (NDCs), the permanent secretary noted.
He said the three-day conference will also showcase investment opportunities for public-private partnerships, adding that the private sector’s involvement was crucial to addressing the estimated $50 billion investment needed for Nigeria’s energy transition, as projected by various financial analysts.
While the promise of hydrogen is substantial, the challenges are equally significant. The current cost of producing green hydrogen is approximately $4 to $6 per kilogram, but with technological advancements and increased production scale, it is expected to decrease to $1 to $2 per kilogram by 2030.
Infrastructure development, particularly the construction of pipelines, hydrogen refueling stations, and export facilities, remains a substantial hurdle that needs coordinated action between government and industry stakeholders.
These challenges, Ella stressed, present unique opportunities for innovation, job creation, and economic growth as a hydrogen-based economy in Nigeria is projected to create over 300,000 direct and indirect jobs by 2035, spanning engineering, manufacturing, and service sectors.
In his goodwill message, the Speaker, House of Representatives, Tajudeen Abbas, said the country needed to embrace hydrogen to diversify her energy sources and create jobs.
Abbas, represented by Victor Obuzor, said that hydrogen adoption would help decarbonise the economy while ensuring energy security.
He called for firm regulatory frameworks to create safe hydrogen.
The speaker said the House was committed to deploying necessary legislative frameworks to support the hydrogen transition initiative.
On his part, minister of Innovation, Science and Technology, Uche Nnaji, said that achieving a hydrogen enabled future required a collaborative effort.
Nnaji called on various stakeholders to support the efforts of the country toward achieving the initiative.
Aliyu Mijinyawa, the Chairman, Foundation for Sustainable Social Responsibility in Emerging Africa (FOSSREA), said the conference was to explore the vast potential of hydrogen energy in the country.
According to him, our goal is to position Nigeria at the forefront of the global hydrogen economy, leveraging this clean energy solution to drive sustainable economic growth, energy security, and climate action.
Ambassador, Embassy of Spain to Nigeria, Juan Ignacio Sell, said that energy adoption in the country would help boost the economy and create jobs.
Ignacio Sell, represented by Juan Diego Martin, said Nigeria could count on Spain’s support for an energy transition that was fair.
The First Nigeria International Conference and Exhibition on Hydrogen is a landmark event organised by the Foundation for Sustainable Social Responsibility in Emerging Africa (FOSSREA) in partnership with the Ministry of Petroleum Resources of Nigeria.
The conference aims to foster dialogue and collaboration towards advancing hydrogen technologies and applications in Nigeria, aligning with the country’s commitment to sustainable development and energy transition.
Hydrogen, as a versatile energy carrier, holds immense potential to drive sustainable development, energy security, and economic growth in Nigeria, while supporting the nation’s climate change mitigation efforts.
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