Hydrogen is the most promising vector for harnessing North Africa’s largely untapped renewable energy potential. Low-carbon hydrogen produced in North Africa can play an important role in enabling the European Union and Italy to reach their increasingly ambitious decarbonization targets as a complement to electrification and locally produced renewables. It is estimated that the EU could achieve cost savings by producing at least part of its future renewable energy needs in neighboring high-yield regions. Italy is set to play a particularly important function as both a gateway and a catalyst for North African hydrogen exports. In turn, North Africa stands to benefit from hydrogen both as a source of revenues and as an instrument of diversification, industrialization and local economic development. This would in turn improve social resilience, increase political stability, reduce the risk of radicalization and limit migration flows. Italy has a particularly strong strategic interest in all of these areas, given its geographic location in the Central Mediterranean and marked exposure to social, political and security developments in North Africa. North African hydrogen could also create profitable business opportunities for several Italian companies. In sum, hydrogen can contribute to fighting climate change while preserving positive trade interdependence across the Mediterranean. Strong coordination between the private sector and policy-makers is going to be key to abate costs along the hydrogen value chain and launch successful international hydrogen trade schemes.
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