By Robert Bradley Jr. – April 7, 2022
“The question is, can European leaders and institutions abandon the dynamics that have determined their dealings with Africa in the past – actions that prioritize climate goals over climate goals. Africa’s most pressing needs – and starting to embrace the many benefits that natural gas brings to both continents? ” (Africa Energy Chamber, April 4, 2022)
No need to read between lines. Energy policy is being reset far from wind and sun and towards nature Air. Oil has been a mainstay of the transport market in Africa (no Richie Rich electric vehicles, please). Coal is well preserved. The time has passed for natural gas/LNG, just as the EU itself grudgingly agreed to do earlier this year (along with its backing of nuclear power).
Sorry EU, but energy imperialism needs to be brought down for affordability, reliability and self-determination.
The African Energy Chamber (AEC) editorial, “Time for Europe and Africa [to] Agree on a Green Gas Agreement, talk about natural gas to hydrogen as a means to move towards climate goals. Never mind a piece of bone thrown to the UN; Hydrogen “blue” adds a layer of unnecessary cost and criticized by environmentalists as ineffective methane leaks and doesn’t capture and store carbon (“grey” hydrogen).
Think of natural gas as natural gas for residential, commercial, industrial and power generation.
The 1,400-word editorial politely but firmly follows:
To be fair, when it comes to Africa’s energy sector, Africa and Europe have been at odds over the past few years.
Europe, which has legitimate concerns about protecting the climate and moving the world towards net zero emissions goals, has urged oil and gas producing nations in Africa to not only accelerate transition to green energy sources but also put it in the development process . The general sentiment in the European Union (EU) is that the time for new oil and gas projects in Africa has passed.
African oil and gas producers and African Energy Chamber (AEC) We have been outspoken in our opposition to European environmental groups, leaders and financial institutions meddling in our energy industry, particularly as it discourages funding of new oil and gas projects by Africa. We even called for a boycott last July of European companies that cut off investments in African oil and gas.
As you might expect, African countries were equally frustrated with EU intervention. They are less interested in turning away from the benefits of their fossil fuels, especially natural gas. When you consider that natural gas can alleviate the continent’s wide-ranging energy poverty, helping to reliably provide electricity to the nearly 600 million people in sub-Saharan Africa without reliable and money to generate the funds that Africa will need for a successful energy transition, it’s easy to see why.
However, the EU has not stopped pushing for the cessation of African natural gas production. Until recently, that is.
An earthquake began late last summer as Europe faced rising commodity prices and low supplies of natural gas. Production from renewables cannot fill the gap, making coal use essential to meet their needs. European leaders are beginning to realize that increasing use of natural gas, which emits the least carbon dioxide of all fossil fuels, is their best strategy for sustaining security. European energy in the short term.
By early 2022, the EU declared that natural gas (along with nuclear power) could be considered green energy – as long as it emitted less than 270 grams of carbon dioxide per kilowatt hour.
The prospects progressed further after Russia invaded Ukraine in February. The International Energy Agency (IEA) estimates that today the European Union depends on Russia for 45% of its gas imports, which totaled about 155 billion cubic meters last year. But earlier this month, European Commission President Ursula von der Leyen said the EU would put forward a proposal to phase out Russia’s dependence on fossil fuels by 2027.
Today, the world is beginning to realize the important role Africa’s vast natural gas resources play in meeting Europe’s needs. The EU is also eyeing Africa’s potential for green hydrogen production, i.e. hydrogen produced from renewable energy sources. Countries like Germany have determined that they cannot produce the large amounts of green hydrogen they need to achieve their zero-emissions targets on their own.
As a result, they have begun to set the stage for successful import deals with African manufacturers by investing in African infrastructure and capacity building programmes. I was in Berlin Last week when Namibian Energy and Mines Minister Tom Alweendo and German Economic and Climate Action Minister Robert Habeck signed a Joint Statement of Intent to cooperate in the field of green hydrogen in the Energy Transition Dialogue. amount of Berlin. Namibia’s Green Hydrogen project has made great progress thanks to the work of James Mnyupe, economic adviser to the president of Namibia and the hydrogen commissioner and his team, but more work is needed.
Frankfurt-based Emerging Energy Group has signed an agreement with the Niger government to work on Green Hydrogen and also reduce carbon emissions in oil fields, while also looking to get gas and hydrogen through pipeline to Europe.
Clearly, Africa has an important role to play in meeting Europe’s energy needs today and tomorrow. The question is, can European leaders and institutions abandon the dynamics that have dictated their dealings with Africa in the past – actions that prioritize climate goals over climate goals. Africa’s most pressing needs – and start embracing the many benefits that natural gas brings to both continents?
Can we create an alliance of mutual respect and cooperation, such a cooperative “Green Gas Agreement”? I believe we can, and we must.
If we do, if European governments and businesses begin to increase investment in natural gas projects in Africa, they will accelerate the development of the infrastructure needed for countries to grow. African countries began exporting more gas and hydrogen to Europe, freeing the countries there from dependence on Russia.
Furthermore, European investments in Africa will open the door to more gas-fired power projects with the potential to alleviate energy poverty in Africa. The investments will open the door to industrial projects that use gas as raw materials, such as chemical and fertilizer plants, which will diversify African economies. And they will drive the revenue generation that African countries will need to grow their energy mix and set the stage for a successful energy transition.
Now is the time to invest in Africa
Besides, investing in African gas is the right business move. First, the efforts of the Africa Chamber of Energy to promote a positive investment climate in Africa have paid off. African governments such as Nigeria, Uganda and Namibia have been working to create business-friendly policies ranging from fair local content policies to improved fiscal regimes aimed at enhancing resilience. profitable operation of international oil companies (IOCs) within their borders.
This October, the AEC plans to highlight Africa’s downstream, midstream and upstream oil and gas opportunities with Africa Energy Week, will take place in Cape Town from 18-21 October. It’s important to remember that Africa is still uncharted and still has huge oil and gas reserves. In the last year alone, there have been major discoveries in South Africa, Namibia, Gabon, and off the coast of Cote d’Ivoire, to name a few.
There are not only solid investment opportunities for Europe in exploration and production, but also in gas infrastructure. European governments, businesses and organizations can facilitate the import of African natural gas into their countries by investing in African gas infrastructure including pipelines, LNG export terminals and maritime logistics operations. We hope to see businesses join forces, along with establishing public-private partnerships, to push these infrastructure projects forward.
Promising steps
When it comes to the new era of energy cooperation, Europe and Africa are already on the right track.
For example, I am extremely encouraged by the commitment of Frans Timmermans, executive vice-president of the European Commission, to participate in AEC Africa Energy Week 2022 (AEW) in Cape Town this October. Timmermans will participate in investor forums, panel discussions and meetings with African Energy Ministers, the President, Africa Energy Group and other stakeholders in the Oil and Gas industry. .
Meanwhile, the Africa Energy Chamber met with the European Commission in Brussels and spoke with German leaders in Berlin about the role of African hydrogen in Europe’s energy transition with thanks and great credit to Konrad Adenauer Stiftung and especially Anja Beretta, Director of the Climate Change and Energy Security Program to convince us to get involved and speak our minds. She never tries to make us muscular and that’s respectful.
I just hope this pattern of open and respectful communication continues.
To build this moment, we need strong leadership. As I have said many times, Africa and the EU need to think about our energy relationship not as a binary choice between oil, natural gas and coal production and climate change mitigation. is in the context of energy security and just the energy transition. Rising energy prices and conflicts underscore the urgency to do both.
That said, after my conversations with EU officials, I believe both Africa and Europe can rise to the challenge.
Africa can help Europe reduce its dependence on Russian natural gas and produce the hydrogen needed to meet its ambitions. And at the same time, Europe can support Africa’s goals for an energy transition that is equitable on our own timeline, allowing us to use our oil and gas resources to build renewable energy infrastructure, skills and technologies. One that will not negate our efforts in alleviating energy poverty.
As allies, we can create the energy future we need and want. Now let’s change our mindset and get to work.
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