Oil and Gas resources play a critical role in Africa’s growth and economic stability. Africa’s proven fossil fuel reserves are estimated at more than $15.2tn, with Libya and Nigeria having the highest Oil proven reserves based on the 2021 energy review and market value.
However, the global energy transition puts this crucial income source for the continent at risk. It is forecasted that there will be a slower global decline in demand for Oil and gas is expected to see continued growth until the mid-2030s before peak demand is reached. In addition, to achieve the 1.5°C global warming target under the Paris Agreement, studies suggest that a third of current oil reserves, half the existing natural gas reserves and nearly 90% of current coal reserves must remain in the ground. Applying this to Africa would leave a potential $6.7tn of fossil fuels stranded on the continent.
These will impact Africa’s fossil-fuel exporting economies as they try to diversify their economies and income sources.
There is a high need for accelerated fossil fuel production within the African continenent in order not to end up as stranded asset owners in the next 50yrs to come. Africa’s energy mix has been relatively constant for the last 30 years despite successful renewable energy projects because Africa’s overall scale of renewables is microscopic. Africa’s current energy generation mix is dominated by fossil fuel generation, with hydropower making the only meaningful renewable energy contribution. There has to be a more aggressive but systematic shift within the renewable energy mix to accelerate solar and wind technologies.
Format HC is positioned to support and bring out values that will help produce the Fossil fuel limit and drive new ideas and innovative technologies to increase carbon capture. We also commit to improving energy efficiency within its current location in Nigeria and our expansion plans in places like Gabon and Congo.
We are moving in the world of energy in Africa