MechChem Africa September-October 2022

⎪ Cover story ⎪

sector stakeholders published by Lloyd’s List identified ammonia as one of the top three fuels with potential by 2050 and that am monia usage to fuel ships will grow to 7% by 2030. Bunkering of NH3 fuel at its ports will holdNamibia in good stead in this endeavour. As well as a clean energy carrier to store or deliver energy for power generation or mobility, GH2 can be used to create a suite of products including green ammonia, green methanol, synthetic fuels and synthetic natural gas. When green hydrogen is combined with carbon dioxide, green methanol can be pro duced, which can be added to conventional liquid fuels for cleaner emissions during com bustionor used to fuel 100%methanol-based drive systems. Leading shipping companies are also investigating the use of methanol to fuel con ventional combustion engines andmethanol powered fuel cells. The great advantage of methanol is that existing infrastructure for liquid fuels can be used, either directly or fol lowing easy and inexpensive modifications. Synthetic natural gas (SNG) is produced by combining green hydrogen with carbon dioxide in a process called Methanation. Applications of SNG include heating, mobility and energy conversion. Hydrogen can also be used to produce sustainable aviation fuels such as green kerosene via the Fischer-Tropsch process. In addition, new propulsion technologies, such as hydrogen direct combustion in turbines, are currently in development. Significant challenges remain, how ever, with respect to the scale-up of GH2 production. • High product ion cost : Current ly the production cost of green hy drogen varies between US$3/kg to $6/kg, while that of grey hydrogen is between $1 and $1.5/kg. The single largest cost component for competi tive green hydrogen production is the price of renewable energy (RE), with RE electricity pricing of less than $20/MWparamount foreconomical pro duction. Since Namibia is endowed with favourable solar and wind resources, however, the price of renewable energy is expected to plummet with the scaled implementation of renewable power projects. Electrolyser investment cost: The up front investment into electrolyser tech nology is deemedexorbitant, specifically in thecontext of unsecureddemand. This is forecast to reduce significantly with continued innovation and the deploy ment of the technology at scale. The Chinese government is evaluating the installationof some100GWof electroly •

Thyssenkrupp green hydrogen (GH2) hydrolysers can be used to manufacture green ammonia, which is considered the most feasible medium to carry hydrogen across large distances.

TK Uhde is the owner of a large portfolio of chemical process technologies, including those for the production of green hydrogen, green ammonia and green methanol.

ser capacity by 2030. With only 1GWin operation currently and10GWplanned, this translates into a massive expansion of electrolyser production – implying substantial unit cost reduction. Unsecure demand: With the green hydrogen industry in its infancy and green chemical value chains yet to be established, potential consumers of green hydrogen are reluctant to commit tooff-take agreements. Development of the hydrogeneconomywill require large investment commitments frombothpro ducers and consumers. In the absence of off-take agreements, investments remain risky for wide-scale production. To address this, supportive legislative framework and policies are crucial. Namibia is championing the develop ment of such frameworks and policies. Environmental concerns: The quan tity of the water needed to produce hydrogen is a challenge, especially for countries with water scarcity. In this respect, Namibia remains a super power, withaccess toa largeuntappedcoastline for desalination. Desalination plants, however, release brine which poses a threat to marine life. Environmentally responsiblemeans of brinedisposal such as injectionwells have to be considered, which introduce additional costs and complexities. Local manufacturing: Project scale and timing in the Namibia region may not

be conducive to the establishment of key technology components such as electrolysers. The local manufacturing of more general items, however, such as tanks and structures can still provide significant manufacturing development and job creation. The manufacture of repeatable components will also drive capital cost down and allow for future optimisation of maintenance costs. Significant funding is available for GH2 pro duction projects. What remains lacking in Africa is the seed funding required to take po tential opportunities into bankable projects. The fundingmechanismfor feasibility studies and facilitationof the regulatoryenvironment are key to rapid project development. In conclusion, Govender says: “We be lieve that the global energy system stands at the crossroads of a new era. This is largely due to rapidly declining renewable energy costs, advances in production solutions and economies of scale. This will potentially make hydrogen the medium of choice for transporting cheap clean energy across the globe, generating a green hydrogen export market estimated to be worth $300-billion by 2050, and creating more than 400 000 jobs globally. “If Namibia takes its place at the global green hydrogen table now, it will propel its economy, drive industrialisation and eco nomic development, stimulate employment and create a regional green hydrogen hub,” says Rajend Govender. q

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September-October 2022 • MechChem Africa ¦ 5