Representatives from China and Nigeria have agreed to develop a green hydrogen project under a €7.6bn ($7.9bn) agreement.
While details are limited, the project is set to be located within the Liberty Free Trade Zero (LFTZ) at Atabrikang in the Ibeno Local Government Area of Akwa Ibom State in Nigeria.
The agreement was signed in Uyo, Nigeria, over the weekend between the Federal Government, APPL Hydrogen Limited (AHL) and China’s LONGi Green Energy Technology.
Idara Ekpo, Chief Visionary Officer of AHL, revealed that the project will potentially produce 1.2 million tonnes of green hydrogen-based methanol per year for export, in addition to medical oxygen and food-grade CO2.
The Nigerian Minister of Innovation, Science and Technology, Chief Uche Nnaji, claimed the initiative represents a “significant step” in the nation’s decarbonisation journey.
Alhaji Bamange Usman Jada, the Managing Director of the Oil and Gas Free Trade Zone Authority, added, “[The project] will diversify Nigeria’s economy, encourage export, and help solve the issue of foreign exchange.
“It will lead to technology transfer, create massive employment for our people, and it is environmentally friendly and sustainable.”
Last month, the Energy Industries Council (EIC) highlighted that despite there being around 41 hydrogen projects set to enter development in Africa over the next five years, not one has reached a final investment decision (FID) yet.
Read more: Africa’s hydrogen ambitions held back by regulatory gaps: EIC
EIC’s Africa OPEX Report underlined reliable offtake agreements, a comprehensive regulatory framework and resilient infrastructure as significant hurdles.
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