Assessing the Economic Advantage of Hydrogen to Fossil Fuel in Nigeria

Abstract

Hydrogen is an abundant element and a flexible energy carrier, offering substantial potential as an environmentally friendly energy source to tackle global energy issues. When used as a fuel, hydrogen generates only water vapor upon combustion or in fuel cells, presenting a means to reduce carbon emissions in various sectors, including transportation, industry, and power generation. Nevertheless, conventional hydrogen production methods often depend on fossil fuels, leading to carbon emissions unless integrated with carbon capture and storage solutions Hydrogen which is a clean energy carrier, offers a promising alternative. However, the transition from a conventional petroleum-based energy economy to a hydrogen economy involves many uncertainties regarding concerns such as the development of efficient fuel cell technologies, problems in hydrogen production and distribution infrastructure, hydrogen safety issues and the response of carbon-based fuel markets. This paper presents an assessment of the economic impact of hydrogen energy on the transportation and energy use sectors of Nigeria, along with implications for Greenhouse Gas (GHG) emissions. It also assesses the economic advantage of hydrogen to fossil fuel in Nigeria, considering production costs, infrastructure, and market demand. Our analysis reveals that hydrogen production can create new industries, jobs, and revenue streams, while reducing greenhouse gas emissions and environmental impact. Although hydrogen production costs are currently higher than fossil fuel extraction, Nigeria's abundant resources and growing energy demand make hydrogen an attractive option for future energy security and economic growth.