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The analysis highlights the benefits of harnessing solar power to create green hydrogen in four African hubs: Mauritania, Morocco, southern Africa and Egypt. This is equivalent to energy costs of US$60 a barrel.
The concept of a hydrogen pipeline connecting Qatar, Saudi Arabia, Egypt, and traversing the Mediterranean Sea to Europe may seem ambitious, but initial assessment indicates its feasibility. The cost of transporting hydrogen through this pipeline is initially seen at approximately €1.2/kg million tonnes of hydrogen annually.
The cost of new-build onshore wind has risen 7% year on year, and fixed-axis solar has jumped 14%, according to the latest analysis by research company BloombergNEF (BNEF). The global benchmark levelized cost of electricity, or LCOE, has retreated to where it was in 2019.
Use of the alternate routes would increase the cost of transportation. The Suez Canal is located in Egypt, and connects the Red Sea and Gulf of Suez with the Mediterranean Sea, spanning 120 miles. Other alternate routes could include the deactivated 1.65-million million-bbl/d Tapline to Lebanon. Suez Canal/SUMED Pipeline.
It is this vision that has triggered a slew of recent green hydrogen investment deals in Abu Dhabi, Dubai, Egypt, Jordan, Morocco, Oman and Saudi Arabia. However, the cost is one very large fly in the ointment. Many more will follow. Until green hydrogen becomes price competitive, it cannot fulfil its promise.
The Levant Basin contains the activity closer to Cyprus, while the gas production offshore Egypt is a part of the Nile Delta Basin. Input parameters include the project’s capital costs, its operating costs, the plant’s fuel loss factor, and the plant’s utilization rate. Operating maintenance costs were set at $0.20/MMBtu
This geographically diverse group comprises Brazil and Mexico in the Americas; South Africa and Nigeria in Africa; Egypt and Turkey in North Africa/Mediterranean; Saudi Arabia and Iran in the Middle East; as well as Thailand and Indonesia in Asia. The OECD represents the developed economies.
Other companies that have signed up with the Gujarat government include Nexzu Mobility, which has signed a Memorandum of Understanding (MoU) with the Gujarat government to develop what it claims is India’s first-ever Smart EV Park at a cost of over Rs 5,000 crore over the next ten years.
This is partially due to the cost of EVs in these countries, but also with a relative lack of charging infrastructure. Countries like Rwanda, Kenya, Uganda and Egypt all have plans in place to increase EV production and usage. In Africa , South Africa is leading the way on the continent as far as EV adoption, although it remains low.
Reasons for the falling prices include increased airplane capacity — the number of seats on a given route — and a drop in the cost of jet fuel. More distant destinations, including Egypt and India, are also gaining traction as well as polar excursions and world cruises, she said.
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