Global Energy Market To Generate $27 Trillion From Clean Fuel Sources By 2050-IEA

Yemisi Izuora

An energy expert from the International Energy Agency (IEA), has estimated that clean fuel sources could create $27 trillion for the global energy market by 2050.

Tae-Yoon Kim, energy analyst at IEA, argued that the search for cleaner sources of energy could create a $27 trillion market opportunity for manufacturers across the world by 2050.

Kim’s comments coincided with concerns raised by the African Refiners and Distributors Association (ARDA) over Africa’s growing population in relation to the demand for energy and the infrastructure needed to process renewable sources of energy.

But Kim, who spoke at the 2022 ARDA Virtual Storage and Distribution workshop on the theme: “Africa’s Road to Net Zero Emissions,” said that Nigeria and other sub-Saharan African countries will provide a significant share of the world’s mineral resources that are critical to clean energy technologies.

Kim stated fuel cells, electrolysers, battery packs, wind turbines and solar PV modules, expected from solid minerals like copper, cobalt, manganese, graphite, platinum, chromium, bauxite and others would spur cleaner energy technologies and a new industry for Africa.

He noted that Africa’s expansive land and abundant natural resources provide potential for production of low-carbon hydrogen from renewables at cost-effective prices.

“Without rapid progress on economic diversification, global energy transitions are set to take a heavy toll on the export revenues of key producers,” he argued.

speaking on the projected exponential growth in population in Africa, Executive Secretary, ARDA, Anibor Kragha, noted that fossil fuels demand and products imports would grow over the next two decades in Africa.

He stressed that a sustainable transition to cleaner fuels was imperative to addressing public health issues, insisting that coordinated storage and distribution investments were required to deliver Africa’s energy transition plan.

Executive Director, CITAC, Elitsa Georgieva, in her remarks, noted that the inability of Africa to meet half of its demand for Liquefied Petroleum Gas (LPG), petrol and jet A1 fuel, kerosene, gasoil, fuel oil and others locally, amidst growing population demand, remained worrisome.

She noted that while technologies like electricity and biofuels like ethanol are yet to be developed and proven at scale for cooking, LPG remained an existing viable solution in the transition to fully renewable and emissions-free energy solutions.

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