Author: Ibrahima Khalil
Site of the publication: SSRN
Type of the publication: Article
Date of the publication: April 2024
Introduction
In the vast, sunbaked expanses of the Sahara Desert, Mauritania is embarking on a transformative journey that might well position it as a linchpin in the global transition to sustainable energy. This is not the story of a country rich in traditional resources seeking to exploit them in the same old ways. Instead, it’s about a bold pivot to the future, a nation leveraging its abundant solar and wind assets to become a powerhouse in the burgeoning field of green hydrogen. Green hydrogen, a clean fuel generated by splitting water into hydrogen and oxygen using renewable energy sources, represents a key to unlocking a carbon-neutral future.
It’s here, in Mauritania’s vast, wind-swept deserts and sun-drenched lands, that the future of green energy is slowly taking shape, promising to alter the country’s destiny and possibly the world’s energy landscape. With visionary projects and strategic alliances, Mauritania aims to leapfrog into the future, transforming its economy, securing energy independence, and making a significant contribution to the global fight against climate change. It’s a narrative of ambition and action, as Mauritania seeks not just to participate in the green revolution but to lead it from the front.
The Importance of Green Hydrogen
Green hydrogen plays a vital role in the decarbonization of sectors that are traditionally difficult to electrify, such as heavy transport and certain industrial processes. As an energy vector, green hydrogen provides a solution for storing and releasing renewable energy, thus addressing one of the major challenges associated with the adoption of renewable energies: their intermittency.
The International Energy Agency’s report on the renewable energy opportunities for Mauritania emphasizes the country’s unique position to capitalize on its abundant solar and wind resources for green hydrogen production. By exploiting these natural assets, Mauritania can play a pivotal role in the global green hydrogen economy, serving as a model for other nations in similar climatic zones.
Contextual Bridge: From Natural Gas to Green Hydrogen – Mauritania’s Strategic Shift
Mauritania’s strategic location near Europe, coupled with its substantial renewable energy potential, positions it well to become a vital green energy partner. The government’s commitment to fostering a conducive investment climate, as recommended by the EITI report, aligns with the initiatives underway with CWP Global and Chariot. These companies propose two projects with a combined potential capacity of 40 GW, although they are in the early stages of feasibility studies.
The EITI report encourages the Mauritanian government to balance natural gas production with global decarbonization efforts. Gas, considered a transition fuel, may see increased demand in the short to midterm, further justifying investments in gas infrastructure that can later pivot to support green hydrogen production. The anticipated growth in global LNG demand and Mauritania’s strategic position could also help propel the country into a green hydrogen hub.
Moreover, the EITI report’s insights into Mauritania’s renewable energy potential, particularly in green hydrogen, underscore the need for strategic policy frameworks that prioritize sustainable energy development. With the European Union’s push for increased green hydrogen imports, Mauritania’s readiness to establish a coherent, transparent, and supportive policy environment for green hydrogen can place it at the forefront of this energy transformation, making the most of its natural gas phase as a bridge to a sustainable future.
Policy and Regulatory Framework Analysis for Green Hydrogen Development in Mauritania
Current Landscape
Mauritania demonstrates a forward-looking approach towards attracting Foreign Direct Investment (FDI), particularly in sectors such as mining, hydrocarbons, and renewable energy. The establishment of the Agency for the Promotion of Investment in Mauritania (APIM) in 2021 is a strategic move to streamline the investment process and foster a conducive environment for FDI, essential for green hydrogen projects.
The EITI report encourages the Mauritanian government to balance natural gas production with global decarbonization efforts. Gas, considered a transition fuel, may see increased demand in the short to midterm, further justifying investments in gas infrastructure that can later pivot to support green hydrogen production. The anticipated growth in global LNG demand and Mauritania’s strategic position could also help propel the country into a green hydrogen hub
The legal framework in Mauritania does not prohibit foreign investment in any sector, offering a broad playing field for green hydrogen initiatives. However, the country’s approach to performance requirements and expatriate staffing could pose challenges. Specifically, the mandate that companies may employ expatriate staff in no more than 10% of key managerial positions, with a push towards “Mauritanization” of these roles, may affect the development of highly specialized green hydrogen projects that require global expertise.
Economic Impact Analysis
A notable aspect of Mauritania’s green hydrogen venture is the potential for economic diversification. Traditionally reliant on sectors such as mining, fisheries, and agriculture, the country now stands at the threshold of adding a high-value, sustainable energy sector to its economic portfolio. This diversification not only enhances Mauritania’s economic stability but also positions it as a leader in green energy within the region and beyond.
The environmental implications of transitioning to green hydrogen production are profound. By reducing reliance on fossil fuels and lowering carbon emissions, Mauritania contributes to global efforts against climate change. This transition not only aligns with international sustainability goals but also enhances Mauritania’s environmental stewardship, ensuring a healthier planet for future generations.
Direct Economic Contributions
The transition to green hydrogen, while nascent, is underpinned by the rise of global LNG demand and Mauritania’s potential in the sector, which can create new avenues for economic growth. With demand for green hydrogen projected to increase as production costs decrease and become more competitive with grey and blue hydrogen, Mauritania’s aim to produce green hydrogen could lead to economic diversification and bolster its energy independence.
Workforce Development and Port Fee Reductions: Ensuring Sustainable Growth
Training Subsidies for Local Workforce Development: Allocate funds for the training and development of the local workforce in green hydrogen technologies. A skilled workforce is essential for the nascent sector’s growth and will ensure that the benefits of this green revolution are widely shared among Mauritanians.
Reduced Port Fees: Offer reductions on fees paid at maritime ports for shipping and services related to green hydrogen (up to 30% discount for the first 20 years). This will enhance Mauritania’s competitiveness as a green hydrogen export hub, attracting international investment. Strategic Recommendations for Self-Production and Long-term Autonomy.
Encouragement of Self-Production: Propose special incentives or even more favorable electricity rates for green hydrogen producers investing in their renewable energy production capabilities, such as dedicated solar parks or wind farms. This strategy will not only provide energy independence for producers, reducing their exposure to energy cost fluctuations, but also contribute to Mauritania’s sustainable energy transition. It positions the country as a leader in renewable energy and green hydrogen sectors, aligning with global sustainability goals.