The Implementation Pathway of Hydrogen Production in Nigeria

Abstract

The global shift toward cleaner energy sources to improve environmental sustainability and mitigate climate change necessitates the widespread adoption of clean energy carriers like hydrogen. Hydrogen is already being utilized alongside other renewable energies in various countries for power generation, transportation, and industrial processes. Nigeria, rich in different renewable resources, has a unique opportunity to leverage hydrogen technology to diversify energy exports while meeting its sustainability goals. This study aims to assess the feasibility of hydrogen production with emphasis on technological options, resource availability, infrastructure requirements, and policy considerations in Nigeria. The paper explains the different types of hydrogen, the production routes and the relative feasibility within Nigeria's current energy sector. A comparative analysis of different hydrogen production methods was conducted using techno-economic criteria including capital cost, hydrogen production cost per kilogram, operational expenditure, and emissions profile. Due to Nigeria's substantial natural gas reserves and existing hydrocarbon infrastructure, blue hydrogen produced using SMR is the most cost effective and being integrated with carbon capture and storage (CCS) identifies it as a plausible short- to medium-term pathway. In the long term, Nigeria's abundant renewable energy resource positions green hydrogen as a sustainable and competitive option. However, challenges such as weak electricity infrastructure, high capital costs, water availability concerns, and policy uncertainty remain significant barriers to large-scale deployment. The paper concludes that Nigeria needs a clear plan, early small-scale hydrogen projects and major investment in renewable energy to successfully build a sustainable hydrogen industry.