Finland

Africa has enormous potential to produce low-cost e-fuels e-chemicals and e-materials required for complete defossilisation using its abundant renewable resources widely distributed across the continent. This research builds on techno-economic investigations using the LUT Energy System Transition Model and related tools to assess the power-to-X potential in Africa for meeting the local demand and exploring the export potential of power-to-products applications. In this context we analysed the economic viability of exporting green e-fuel echemicals and e-materials from Africa to Europe. We also present the core elements of the Power-to-X Economy i.e. renewable electricity and hydrogen. The results show that hydrogen will likely not be traded simply due to high transport costs. However there is an opportunity for African countries to export e-ammonia e-methanol ekerosene jet fuel e-methane e-steel products and e-plastic to Europe at low cost. The results show that Africa’s low-cost power-to-X products backed by low-cost renewable electricity mainly supplied by solar photovoltaics is the basis for Africa’s vibrant export business opportunities. Therefore the Power-to-X Economy could more appropriately be called a Solar-to-X Economy for Africa. The Power-to-X Economy will foster socio-economic growth in the region including new industrial opportunities new investment portfolios boost income and stimulate local technical know-how thereby delivering a people-driven energy economy. Research on the topic in Africa is limited and at a nascent stage. Thus more studies are required in future to guide investment decisions and cater to policy decisions in achieving carbon neutrality with e-fuels e-chemicals and e-materials.