Nigerian and Chinese partners have signed a €7.6bn ($7.9bn) deal to develop a green hydrogen-based methanol project in Akwa Ibom State, Nigeria. It marks one of Africa’s largest hydrogen investments to date.
Located in the Liberty Free Trade Zone, which is the largest energy free zone in West Africa, the facility is slated to produce 1.2 million tonnes of methanol per year for export, if all goes to plan, along with medical oxygen and food-grade CO2. The deal was signed by Nigeria’s federal government, APPL Hydrogen Ltd, and China’s LONGi Green Energy Technology.
Methanol is a key industrial feedstock used in plastics, adhesives, and synthetic fuels. Green methanol, made from hydrogen and captured CO2, is gaining traction as a low-carbon fuel for shipping, aviation, and other hard-to-decarbonise industries.
Nigerian Minister of Innovation, Science and Technology, Chief Uche Nnaji, called the project a “significant step” in Nigeria’s decarbonisation strategy.
Alhaji Bamange Usman Jada, Managing Director of the Oil and Gas Free Trade Zone Authority, said the project would boost exports, create jobs and support economic diversification.
Despite Africa’s growing hydrogen ambitions, no projects have yet reached final investment decision, according to the Energy Industries Council.
