Page 19 - AfrElec Week 22 2021

AfrElec NEWS IN BRIEF AfrElec

funding proposals for innovative financial
instruments that could either boost the
immediate demand for green hydrogen,
which is currently more expensive than grey
hydrogen produced from fossil fuels, or
unlock funding for green hydrogen projects.
The price premium between grey and
green hydrogen remains material, with grey
hydrogen currently being produced at a cost
of about €1.50/kg and green hydrogen at €4/
kg. However, that competitiveness gap is
expected to close as more and larger-scale
This also includes 620 MW of projects government, a total of eight wells will be electrolyser plants are built around the world.
being developed under the Corporate PPA drilled in lot one using the two rigs.
(power purchase agreement) law.
The MASEN official also said a detailed
study is ongoing to take into account the ESKOM
possible synergies between renewable HYDROGEN
technologies. de Ruyter cleared of
Morocco’s installed power generation Germany KfW looks to fund
capacity is over 10,000 MW and currently has wrongdoing
about 4,000 MW of renewables in operation SA hydrogen with €200mn
comprising 700 MW solar, 1,770 MW hydro The Eskom board said an independent
and 1,430 MW wind. German development bank KfW has initiated investigation had cleared group chief
a €200mn programme to support the executive Andre de Ruyter of any wrongdoing.
establishment of green hydrogen projects in The board had probed allegations of
South Africa and it intends releasing a formal racism not complying with procurement and
GEOTHERMAL request for information (RFI) by the end of recruitment policies.
June. The board released a statement detailing
KenGen starts drilling concessional loan finance, must be disbursed the findings of a report by advocate Ishmael
The funding, which is in the form of
Semenya, which described some of the
geothermal well in central by December 2023 and KfW has appointed allegations as “wild,” “bizarre” and “baseless”.
the Council for Scientific and Industrial
The allegations were levelled against De
Ethiopia Research (CSIR) and Meridian Economics to Ruyter by former Eskom chief procurement
help it identify and evaluate high-potential
officer Solly Tshitangano, who reported the
Kenya’s state-owned electric power producer projects for implementation during the course matter to the President Cyril Ramaphosa
said Wednesday it has started drilling the of this year. among others.
first geothermal well at Aluto site in central Green hydrogen is produced using Although the Eskom board has not shared
Ethiopia for the country’s state utility firm renewable electricity to split water into the report on the allegations with the public,
Ethiopian Electric Power (EEP). hydrogen and oxygen using an electrolyser. it has detailed its scathing findings against
Rebecca Miano, CEO of Kenya Electricity The German government’s National Hydrogen Tshitangano.
Generating Company (KenGen), said in a Strategy, adopted in 2020, envisages the On the allegation that De Ruyter is racist
statement issued in Nairobi that the company energy carrier playing a key role in the and preferred a white company above one
has so far drilled 29 meters against a possible decarbonisation of those sectors that are that is black owned - the investigation could
maximum of 3,000 meters. difficult to abate using renewable electricity not find any substantiation that he conducted
Miano added that within the next three directly, such as marine transport, long- himself in any manner that would amount to
weeks, the firm will mobilise specialised distance land freight, cement, chemicals and racist practice.
drilling services crew including aerated steel. The statement states that when Semenya
drillers, directional drillers, and reservoir Crucially for countries with potent interviewed Tshitangano, he denied making
engineers to ensure the project’s success. renewables resources, such as South the allegations.
She noted that drilling a single well Africa, the strategy recognises the limits Semenya is further quoted as saying
usually takes about two months to complete, of producing green hydrogen in Germany “nothing could be more bizarre” in response
but KenGen hopes to shorten the period itself and, therefore, envisages the creation to allegations that De Ruyter breached
despite the challenges brought about by the of international partnerships in order to Eskom’s delegation of authority and exercised
COVID-19 pandemic. potentially import green hydrogen and green- poor governance.
The move came after the completion of hydrogen derivatives, such as green ammonia,
phase one of a contract by a consortium of carbon-neutral jet fuel and green iron and
partners including Chinese equipment and steel.
oil services company Kerui Petroleum, under Germany expects to be producing only
which two rigs were delivered at Aluto site. 420 000 t of the three-million tons it will be
Under this project financed by the World consuming yearly by 2030.
Bank through a loan to the Ethiopian In addition, KfW is open to receiving

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