Inaugural hydrogen summit to help address access to energy

The inaugural Global African Hydrogen Summit, which will take place in Windhoek, Namibia, from September 3 to 5, will supplement ongoing efforts to address the lack of access to electricity for more than 600-million people across Africa.

The event is endorsed by the Ministry of Mines and Energy Namibia and patronaged by the Namibia government, and at the heart of the Global African Hydrogen Summit is its mission to drive critical investments and financing into bankable green energy projects across Africa.

A critical pillar of the summit, the Project Investment Roundtables, will play a pivotal role in accelerating deal-making from origination through to bankability, transaction and financial close in sectors spanning hydrogen, renewables, agriculture, mining, power, infrastructure, heavy industry, hard-to-abate, transportation, and mobility.

Fostering opportunities for investments, financing and partnerships, the Project Investment Roundtables are exclusive closed-door boardroom investor meetings where project developers will have unique and direct engagement with financiers, investors, government officials, energy developers, offtakers, and other critical stakeholders, to assess the feasibility of “diverse and ground-breaking” projects on the continent.

For a green energy project in Africa to be considered fully bankable, it must reach specific milestones or have a well-defined roadmap. Investors, both equity and debt, will assess technical and commercial risk factors before committing financing. Energy transition projects present unique challenges compared to traditional fossil fuel-based projects, particularly in an African setting.

While key technical risks span scale-up of technology, integration and interfaces, supporting infrastructure availability and contracting strategy, commercial risk considerations include customer offtake, market availability, energy transition product pricing and sponsor support.

Ahead of financial commitment, investors also require an environmental and social impact assessment completed in line with national and international standards.

The Global African Hydrogen Summit call for bankable African green energy projects closed on Friday, July 12, 2024, and all projects were subjected to review by the Summit’s Investor Board. The 15-strong Investor Board, represented by organisations such as the Climate Fund Managers, the German Investment Corporation and Rand Merchant Bank, will provide thorough assessment of each project based on strict submission criteria. Developers and investors will then be matched to participate in the Project Investment Roundtable meetings at the summit, where subsequent deal signings and announcements will be made.

The event organisers DMG Events note that Africa has being identified as a prime source for renewable-energy exports, and the International Energy Agency estimates that Africa will need to double its electricity generation capacity by 2040 to meet growing demand, while reducing reliance on fossil fuels and meeting net-zero goals.

This realisation of these goals is more attainable than ever, as most development banks, export credit agencies, and bilateral aid and development finance institutions have a clear mandate to facilitate the energy transition. Many of these institutions offer preferable terms to projects that help achieve net-zero targets. Additionally, numerous climate investment funds and venture capital funds are dedicated to green energy investments, including throughout the development stage.