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Business News Thu, 5 May 2022

Energy Transition: Ghana keen on avoiding hydrocarbon assets are left stranded - Amin Adam

Ghana begins national conversation on energy transition

Ghana strives to evade energy ‘transition curse’ – Amin Adam

Ghana wants to own process for energy transition at its own pace - Deputy Minister of Energy


Deputy Minister for Energy, Dr. Mohammed Amin Adam has said Ghana will work assiduously by canvassing coherent arguments in the wake of the global energy transition advocacy to avoid its hydrocarbon assets from being stranded.

According to him, the effects of the transition ranging from revenue losses, underinvestment in hydrocarbons, and the huge cost of adjustment will only deepen the already existing schism.

He added that this will further ensure Africa is left behind the rest of the World.

Dr Amin Adam who was speaking at the “Around the world series” event at the 2022 Offshore Technology Conference in Houston, Texas, USA said even though Africa is the least emitter, it is certainly going to suffer the grave consequences of the transition. This he described as unfair, inequitable, and unjust.

Touching on the theme of the conference; “West Africa’s Oil and Gas in search of investment in the wake of Energy transition” the Deputy Minister said one of the unfortunate realities in several West African countries particularly in the resource-rich areas is the fact that, the standard of living of the people is normally not commensurate with the wealth of resources extracted, leading to social and political agitation in several instances.

“Our governments have, therefore, been looking for options to generate oil and gas wealth and to improve on the management of this wealth through good governance to support our development efforts. Oil and gas resources have, therefore, been viewed today as a ‘shot in the arm’ promising prosperity,” he said.

In the wake of the above, Dr. Amin Adam argued strongly that efforts to push Africa into the transition corner at the same pace as the West is not just counter-productive but an affront to the concept of global development.

He said Europe is looking for new gas suppliers due to geopolitics and the desire for energy independence from Russia and indicated that Africa holds significant levels of undeveloped oil and gas reserves, which could prove strategic for European countries compared with US gas given its proximity to Europe.

He therefore stated investments in Africa could provide answers to Europe’s gas demand of between 150-190 billion cubic meters annually that Russia has usually supplied.

The deputy minister said Ghana wants to own the process and to transition at its own pace, thus, to this end, the Government of Ghana has established a National Energy Transition Committee to develop the energy transition policy and strategy to guide our steps towards a net-zero future.

“We want to continue oil and gas production, scale-up renewable energy, integrate nuclear energy in our energy mix, and in future produce blue and white hydrogen,” he noted.

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Source: www.ghanaweb.com
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