FOREWORD
The energy sector plays a key role in the pursuit of the objectives set at the national level, as set out in the DRCONGO 2030 Vision, and in the obligations set at the international level, in particular
The Sustainable Development Goals (SDGs), climate agreements like the Paris Agreement and the Africa Agenda 2063. The DRCONGO has also made improving the livelihoods and wellbeing of its citizens a top priority to through the economic transformation agenda. The development of green hydrogen and its derivatives is part of these national objectives. As the world navigates the changing landscape of sustainable energy solutions, this Green Hydrogen Strategy serves as a beacon of innovation and commitment to a greener, more resilient future.
Through meticulous research, collaboration and forward-thinking ideas, this strategy charts the way forward to harness the potential of green hydrogen as a key driver of our energy transition. The analysis showed that the DRCONGO has sufficient renewable energy resources for the large-scale production of green hydrogen without affecting the availability and supply of electricity consumers.
This comprehensive approach underscores the strategy’s commitment to nurturing a common vision, elevating green hydrogen to the rank of an essential cross-cutting factor in the DRC’s development agenda. By acting as a catalyst for sustainable socio-economic progress, the strategy aligns with the country’s unwavering pursuit of sustainable growth.
This commitment to sustainable progress is palpable in the objectives of the strategy, carefully crafted to prioritize economic expansion, the creation of employment opportunities and the promotion of environmental stewardship. Both a visionary framework and a pragmatic guide, it expresses our collective ambition while providing tangible direction to move from conception to realization.
PREFACE
The importance of green hydrogen production and its multifaceted applications are deeply rooted in the DRCongo’s ambitious green economy program. Four key areas
have been identified on which the focus will be resolved: the formulation of a global strategy for green hydrogen and a roadmap; second, creating an enabling environment for growth facilitated by putting in place regulatory and policy frameworks that will enable and propel green hydrogen efforts; third, the facilitation of financial mechanisms and technical advice to support their deployment; and finally, dynamic exploration and testing of cross-industry applications that capitalize on the potential of green hydrogen.
The DR Congo Green Hydrogen Strategy is the result of the concerted efforts of the Green Hydrogen Task Force, comprised of government officials, development partners, the private sector and academia. I would like to express special thanks to the European Delegation in Kenya who supported the development of the strategy using the Technical Assistance Facility (TAF) consultant team. Special thanks.
I would like to express my deep gratitude to the Technical Working Group, all parties and stakeholders who wholeheartedly supported the development of the strategy and roadmap. Their unwavering commitment and valuable contributions have played a vital role in developing a comprehensive green hydrogen strategy and a roadmap towards a greener and sustainable energy future for the DRCongo.
EXECUTIVE SUMMARY
In line with DRCongo’s Vision 2030, which aims to accelerate sustainable growth and transform the country into a competitive and prosperous country with a high quality of life, DRCongo has made improvements in livelihoods and welfare of its citizens a top priority through the economic plan. Transformation program. Recognizing the importance of green hydrogen beyond its role as an energy source, the DRC now aims to exploit its transformative potential as a transversal catalyst of the country’s development program and catalyst for socio-development. sustainable economy.
Development.
Recent years have witnessed a growing sense of urgency to transition to sustainable and clean energy sources, driven by the pressing challenges of climate change and the imperative to reduce carbon emissions. Africa holds over 10,000 GW of renewable energy potential, positioning the continent as a powerhouse capable of helping to keep global temperature rise within 1.5°C.
Goal of the Paris Agreement.1 A particularly promising avenue that has gained traction is the use of green hydrogen derived from renewable energy sources. Green hydrogen has the potential to play a central role in the global energy transformation, offering substantial opportunities to decarbonize various sectors, enable sustainable industrial processes and facilitate the transition to a low carbon future.
Amid this global surge of interest in green hydrogen, DR Congo is in a unique position to capitalize on the unprecedented political and commercial momentum surrounding this nascent industry. With a remarkable track record in developing a diversified power generation mix, approximately 90% of DRC’s electricity currently comes from renewable energy sources.2 The country has vast potential for untapped renewable energies, notably a leading position in geothermal energy in Africa.
Exploring options to produce green hydrogen from green electricity is a logical next step in building a green economy in the DRCongo and is based on a strong culture of innovation and a long-standing commitment to favor of sustainable development. This situation presents a unique window of opportunity for the DRCongo to seize business opportunities in the emerging green hydrogen sector. By doing so, the DRCongo can spur green economic growth, contribute to the profound socio-economic transformation of the country, and play a proactive role in global collaborative efforts to address the impacts of climate change. The dynamic private sector which is actively pursuing several green hydrogen projects in the DRC provides irrefutable proof of the country’s readiness and potential in the field of green hydrogen.
DR Congo’s unique window of opportunity in the field of green hydrogen – sustainable economic transformation and green growth
Green hydrogen has potential applications in several important sectors in the DRCongo, including industry, transport and energy. Green hydrogen is a versatile raw material in the chemical industry, especially for the production of ammonia (used in nitrogen fertilizers) and methanol. In addition, hydrogen can play a role in decarbonising the road transport sector, and its derivatives can decarbonise maritime transport (via ammonia or methanol) and aviation (via sustainable aviation fuels, SAF ). In addition, hydrogen offers a means of energy storage and can provide baseload energy in the electrical sector. However, to accelerate the creation of a green hydrogen industry in the DRCongo, it is advisable to prioritize specific hydrogen applications that not only bring significant benefits to the country, but also align with its overarching development goals and its broader development goals. At the same time, these applications should demonstrate the greatest potential for near-term commercial viability.
Identifying the most promising use cases for green hydrogen naturally puts the focus on the agricultural sector. The agricultural sector is the cornerstone of the DRCongo economy, providing livelihoods and employment to most of the population, while generating a significant share of export earnings.
The sector further contributes to value addition and job creation through its linkages with other sectors such as manufacturing and agribusiness. Additionally, the agricultural sector is entirely dependent on imported fertilizers, leading to substantial government spending and subsidies on fertilizer imports and making it vulnerable to fluctuations in global commodity prices, as observed in 2021 and 2022. Thus, investing in the agricultural value chain and establishing a The national fertilizer production industry based on green hydrogen and ammonia represents a no-regrets option for the DRCongo.
More generally, by replacing imports of hydrogen products such as fertilizers or methanol with green alternatives produced in the country, DRCONGO can promote the emergence of new industrial processes, mitigate supply risks and reduce related uncertainties. to the volatility of market prices. The use of green hydrogen therefore presents a promising avenue for opening up sustainable manufacturing opportunities and boosting industrialization, in line with the objectives of DRCongo Vision 2030, the country’s development plan.
Despite the growing momentum around hydrogen, the vision of green hydrogen, although technically feasible, has not yet achieved commercial viability. Building a green hydrogen economy presents challenges that are present in all countries seeking to adopt this energy source. The development of a market for green hydrogen and its derivatives, whether at the national or international level, presents challenges to which the DRCongo is not immune. A crucial factor in any hydrogen strategy is the ability to identify early buyers; the main risk concerns uncertainties linked to market demand and prices (affordability and willingness to pay) of green hydrogen and its derivative products. However, DRCongo has a unique and advantageous starting position due to its geothermal energy endowment with its high capacity factor. Additionally, with its abundant sources of renewable wind, solar and hydroelectric energy, DR Congo holds an added advantage in the emerging green hydrogen economy.
Although green hydrogen requires a long-term commitment, DRCongo is expected to reap substantial benefits across four key dimensions of successfully creating a green hydrogen industry:
1. Improved balance of payments: the production of green hydrogen for use as raw material in industrial processing plants will reduce DRCongo’s imports of hydrogen-based products such as nitrogen fertilizers and methanol. Once a domestic market for green hydrogen derivatives has been created, this will also open up export opportunities, leveraging DRConfgo’s strategic geographic position as a regional trade hub. Ultimately, this will improve the DRCongo’s balance of payments.
2. Food security and resilience: Green hydrogen has the potential to improve food security and build resilience by enabling local production of nitrogen fertilizer. Fertilizers play a vital role in increasing agricultural productivity. The creation of a national fertilizer production industry can significantly improve the availability and accessibility of fertilizers for the Congolese.
Farmers, resulting in increased agricultural production. The use of green fertilizers produced in DRCongo will also promote sustainable agricultural practices and add value to agricultural products. This self-sufficiency will also help mitigate the impact of fluctuations in the international commodity market, thereby strengthening the resilience of the agricultural sector.
3. Green industrialization and decarbonization: Green hydrogen can serve as a catalyst for industrialization because it allows the establishment of manufacturing value chains dedicated to the production of green hydrogen and its derivatives. This in turn promotes the development of various downstream industries and creates employment opportunities across the green hydrogen value chain. Additionally, the green hydrogen industry can act as a lead off-taker in providing the demand reliability needed to drive electricity grid expansion, accelerate the growth of the renewable energy sector, and ultimately improve access to electrical services for the population of the DRCongo. Replacing conventional hydrogen products derived from fossil fuels with sustainable alternatives will also contribute to global decarbonization efforts and pave the way for the development of new export markets for low-carbon products.
4. In-country investment: Green hydrogen has the potential to attract significant public and private investment in DR Congo, with the primary objective of establishing a green hydrogen value chain that spans diverse sectors and industrial applications , including electricity generation and transmission, hydrogen production and associated downs tream industrial facilities. Investing in this value chain will lead to economic diversification, job creation and industrial growth.
It is therefore an opportune time for the DR Congo to launch this strategy and roadmap for green hydrogen and to align itself with global trends in technology, applications, policy and regulation, while capitalizing on available financing opportunities. This dedicated national hydrogen strategy is essential for the DRCongo, as for any country in the world aiming to establish a robust hydrogen industry, as it provides a clear vision, direction and framework for the development of the hydrogen sector. hydrogen.
The green hydrogen strategy and roadmap for the DRCongo is based on an in-depth analysis of the country’s dynamics, potential and opportunities, together with extensive stakeholder consultations. It highlights the country’s common vision for green hydrogen for the development and use of green hydrogen as a cross-cutting catalyst for the DRCongo’s development program and as a catalyst for sustainable socio-economic development. Additionally, the development of the DRCongo Green Hydrogen Strategy and Roadmap closely aligns with the country’s National Climate Action Plans and its commitment to the global goals set out in the Paris Agreement.
The creation of a green hydrogen industry in the DRCongo requires a clear and targeted enabling and enabling environment, based on solid and well-aligned pillars, the basic elements/enablers. These enablers collectively provide the foundation, support and enabling environment needed to implement the Green Hydrogen Strategy and Roadmap for DRCongo to achieve its green hydrogen vision.
Translating the strategy into specific actions, milestones and timelines helps coordinate and guide implementation efforts and provides a path forward for stakeholders to achieve stated goals. This process establishes a structured framework for collaboration between all stakeholders, from government agencies to private sector participants. By proposing a concrete action plan and establishing short-term priorities, the strategy and roadmap aim to serve as a practical guide for decision-making within the DRC government and a solid basis for creating a green hydrogen industry in the country. A set of priority actions have been identified to operationalize the green hydrogen strategy and roadmap for the DRCongo:
PRIORITY ACTIONS
Q1—Q3/2024
• Establish a high-level “green hydrogen program coordination committee”.
• Create a green hydrogen secretariat that would function as a “one-stop shop”.
• Organize national round tables on green hydrogen on finance and green fertilizers.
• Develop a monitoring and evaluation plan
• Develop a green hydrogen strategy and resource mobilization plan.
• Include a provision dedicated to green hydrogen in the national energy policy.
• Support/accelerate catalytic projects that demonstrate commercial viability, including
implementation of KenGen’s Olkaria green hydrogen demonstration project.
Q3 2024 — Q3/2025
• Develop a green hydrogen stakeholder engagement and communications plan.
• Establish local and international partnerships to scale up training and capacity building.
Q3 2024 — Q4 12026 and beyond
• Expand regional and international cooperation and partnerships on green hydrogen.
Given the nascent state of green hydrogen and the rapid evolution of the sector, the strategy will be implemented gradually over an initial period of ten years. This period will be divided into two five-year phases, allowing for gradual learning and gradual scaling up of initiatives as the enabling environment for green hydrogen matures. It is important to highlight that the plan for the progressive implementation of green hydrogen in the DRCongo closely aligns with the government’s development planning process, in particular the Medium Term Plans IV (MTP IV). This alignment aims to link priority actions to establish a green hydrogen economy with national development planning. The initial phase (2023-2027) of the plan, corresponding to MTP IV, will mainly focus on the growth of domestic demand and the implementation of the first catalytic commercial projects to revive the hydrogen industry. Then, during the second phase (2028-2032), the plan will take into account market developments and other external factors in order to leverage the lessons learned from the initial phase to explore new opportunities in hydrogen such as regional export.
To guarantee the success of the roadmap, it is crucial to carry out a pioneering commercial project in the DRCongo within the next five years. This achievement will be a powerful demonstration of the DRC’s capabilities in the field of green hydrogen and will strengthen its regional and international reputation as a privileged place to develop a green hydrogen industry. It will also allow the DRCongo to develop essential expertise, explore and foster partnerships, and make informed decisions regarding its involvement in the green hydrogen value chain. In addition, it will catalyze the interest and participation of other local and international private sector actors in the hydrogen industry in the DRCongo.
Given the current early stage of the green hydrogen market, coordinated efforts, ambitious policy goals, strategic partnerships and active engagement with the private sector are essential to unlock the potential of green hydrogen in the DRC. More specifically, the DRCongo must establish an effective and adapted regulatory and institutional framework that stimulates the demand for green hydrogen and creates an inviting investment environment. This will in turn attract private sector investment in green hydrogen initiatives in the country.
To ensure the commercial viability and bankability of green hydrogen projects and enable their successful implementation, it is essential to mitigate project and market risks by adopting effective risk reduction measures for projects and the functioning of the market. Initiatives have already emerged and others are being developed to support the development of the green hydrogen sector globally. The European Union announced the creation of the hydrogen bank, while also supporting the development of projects under the Global Gateway strategy to stimulate smart and sustainable investments, including green hydrogen, the EU- EDFI (EEDF) to support investments via the European mechanism. Development Fund (EDF), or FEDD+ Guarantee Facility, while the H2-Global instrument aims to bridge cost gaps and facilitate the functioning of the GH2 and derivatives market.
Blended finance and innovative financial instruments will play a crucial role in stimulating investments in green hydrogen in the DRCongo. As the message from Nouakchott highlights, Development Finance Institutions (DFIs), with their rich experience in successfully scaling up investment in renewable energy development, can play a critical role in rolling out strategies and effective financing instruments to enable first commercial projects and stimulate growth. of the green hydrogen industry in the DRCongo.
