Germany has begun looking for alternative energy sources in Africa to compensate for the country’s loss of Russian gas supplies.
Economy Minister Robert Habeck began a five-day trip to Namibia and South Africa on Sunday, which is a drive of the new energy search.
As part of the plans for his visit, Habeck’s first stopover will be in Windhoek, Namibia’s capital. The Economy Minister will be accompanied by a delegation of 24 German business leaders, where he is scheduled to sign an agreement on the production of green hydrogen.
Before leaving for Berlin, Habeck told journalists that “Namibia has very great advantages in terms of location compared to Europe.” He added that Namibia’s Skeleton Coast on the Atlantic Ocean is excellent for green-hydrogen production because of the constant availability of sun and wind.
Germany’s RWE and consortium Hyphen Hydrogen Energy recently signed a deal that had the potential of enabling RWE to offtake up to 300,000 tons yearly of green ammonia, a hydrogen derivative that is essentially suitable for ship transportation.
Later in the week, Habeck will also be present at the German-African Business Summit in Johannesburg along with South African President Cyril Ramaphosa.
Habeck’s Africa visit is part of a wider German government mission to establish new energy alliances abroad after Russia cut off its gas supplies in September. Habeck has also recently travelled to Canada, Qatar and Norway in an attempt to secure LNG resources.
Speaking on the benefits for Africa if it goes green, Economy Correspondent at Germany Trade & Invest, Fausi Najjar said, “a green energy transition, security of supply and reliable value chains are also key issues in Africa.”
He added that “In particular, the desire for more diversified supply chains is leading to greater interest on the part of German companies in African markets.”
More than 400 German businesses, including in the auto, medical technology and energy sectors, operate in South Africa and employ more than 65,000 people, GTAI figures show. South Africa’s share of total German foreign trade with Africa is more than 40%.
Read also: US, Nigeria agree to deploy gas in push for renewable energy
Gas exports to Europe
According to Ndiarka Mbodji, CEO of a company based in Berlin that offers energy solutions to Africa, the gas shouldn’t be disregarded.
With the ongoing conflict in Ukraine, Mbodji told DW, “you can see right now the need to diversify the source of energy.” And we can grasp the significance of this resource in Africa if we consider it in terms of, say, gas, a source of transformation.
Following German Chancellor Olaf Scholz’s trip to Africa last month, when he signed agreements to assist the infrastructure needed to produce and export oil and gas to Europe, the event was held soon after.
According to Ethiopia’s energy minister, Sultan Wali, energy development initiatives require private-public collaborations and are capital-intensive.
Wali stated that “African countries cannot complete these projects on their own.”
“They require financial aid from Germany and other wealthy western nations. Everyone will have a solid foundation thanks to this forum.”
Why Germany Might Be Interested In Africa
While Africa has vast natural gas reserves and North African countries like Algeria have pipelines already linked to Europe, an Aljazeera report indicates that a lack of infrastructure and security issues have long prevented producers in other regions of the continent from increasing exports.
Aljazeera also reported that renowned African producers are signing deals or reducing energy utilisation so they have more to sell to boost their finances, but some leaders warn that hundreds of millions of Africans lack electricity and supplies are needed at home.
In 2017, the African continent reportedly had 148.6 trillion cubic meters of proven gas reserves — more than 7% of the global reserves.
Nigeria exported more crude oil than any other country in Africa in 2019, selling more than 2 million barrels of oil each day on the global market.
Africa’s overall oil and gas production totalled 327.3 million metric tons in the same year.
By 2020, Africa would have contributed over 9% of the world’s oil exports.
