Market News

Nigeria and China have signed a €7.6 billion (Euros) green hydrogen energy deal that will lead to a gradual transition from fossil fuels to clean energy, in line with global best practices.

The agreement was signed at the weekend in Uyo, the Akwa Ibom State capital, between the Federal Government, APPL Hydrogen Limited (AHL), and a Chinese firm, LONGi Green Energy Technology Company Limited (LGETCL).

The Minister of Innovation, Science and Technology, Chief Uche Nnaji, signed the agreement on behalf of the Federal Government while the Chief Visionary Officer (CVO) of APPL Hydrogen Limited, Mr. Idara Ekpo, endorsed the agreement for the company and the Vice President of LONGi (Europe), Francois Cui, led the Chinese delegation to close the deal.

The project would be located within the Liberty Free Trade Zone (LFTZ) at Atabrikang in Ibeno Local Government Area of the state.

Other members of his team were Monica Ping (Technical Director for Europe), Jim Huang (General Manager for Europe), and Arinze Onyeabo (Business Development Director for West Africa/Technical Manager for Europe).

LONGi, according to the Memorandum of Understanding (MoU), is a world leader in clean energy transition, while AHL is a Nigerian company that provides clean and environmentally-friendly fuel.

Nnaji said his visit to the project site and to witness the exchange of agreement “is a testament to the Federal Government’s commitment to advancing renewed energy, industrialisation and technology-driven innovation as key drivers of economic growth”.

He added: “The project represents a significant step in Nigeria’s journey towards a sustainable energy future.

“As the global energy landscape shifts towards cleaner alternative, investments in green hydrogen, green methanol and green ammonium production place Nigeria at the forefront of green energy innovation.”

The minister listed the benefits of science and technology integration in the sector to include industrial development, job creation, foreign investment attraction, as well as establishing Nigeria’s position in the global energy market.

According to him, the AHL project aligns with national priorities, particularly in fostering a robust research and development ecosystem that supports sustainable energy solutions.

Nnaji stressed that “the Federal Government will collaborate with the Akwa Ibom State government in the areas of investment and technological advancement”.

He called for synergy between public and private sector stakeholders to enable the project achieve the desired success.

The Managing Director of Oil and Gas Free Trade Zone Authority, Alhaji Bamanga Usman Jada, described the project as “one that will diversify Nigeria’s economy, encourage export and help solve the issue of foreign exchange”.

He added: “It will lead to technology transfer, create massive employment for our people, and it is environmentally friendly and sustainable.”

The CVO of APPL Hydrogen Limited, Idara Ekpo, explained that his company was going into the green hydrogen project because the world is moving towards green hydrogen to mitigate the effect of climate change.