Africa is on the brink of a transformative energy revolution, with 41 green hydrogen projects slated for construction by 2030. According to the Energy Industries Council (EIC), a global energy trade association, these developments have the potential to position Africa as a global leader in the green energy sector, particularly in the production and export of green hydrogen. This renewable energy source, derived from water through electrolysis using renewable energy, is gaining traction worldwide as a clean alternative to fossil fuels. However, despite its promise, the green hydrogen sector in Africa faces several challenges that need to be addressed to unlock its full potential.
Africa’s green hydrogen potential is immense, particularly in North African countries such as Egypt, Algeria, and Morocco. These nations benefit from abundant, year-round sunshine, making them ideal for solar-powered hydrogen production. Their proximity to Europe further enhances their strategic importance, with Mediterranean access offering a direct link to key markets. According to the Africa OPEX Report 2025, this natural advantage has attracted significant interest from European countries, particularly Germany, Austria, and Italy. These nations are exploring the repurposing of 3,300 kilometers of midstream gas infrastructure in North Africa to facilitate the import of 4 million tonnes of green hydrogen annually.
The European Union’s (EU) REPowerEU Plan, designed to reduce Europe’s dependence on Russian gas, underscores this growing interest. The plan includes a goal to import 10 million tonnes of green hydrogen annually from Africa. This alignment between Europe’s energy needs and Africa’s renewable energy potential creates a unique opportunity for collaboration and investment in green hydrogen projects across the continent.
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Despite the promising outlook, Africa’s green hydrogen sector is not without its hurdles. Neil Golding, Director of Market Intelligence at EIC, highlights that no commercial-scale green hydrogen project in Africa has reached a final investment decision. Several factors contribute to this slow progress, including the need to secure long-term offtake agreements, establish robust regulatory frameworks, and build the necessary infrastructure to support these projects.
For green hydrogen projects to be viable, long-term offtake agreements are crucial as they provide the financial security needed to attract investors and kickstart project development. Many African countries also lack the regulatory frameworks required to support large-scale green hydrogen projects. Clear policies and regulations are essential to provide a stable environment for investment and operations. Building the infrastructure needed to produce, store, and transport green hydrogen is another significant challenge, as it requires substantial capital and technical expertise. The lack of existing infrastructure adds to the complexity and cost of developing these projects, making innovative financing mechanisms and international cooperation vital.
While challenges persist, some African countries are making notable progress. Namibia and South Africa, for instance, have secured grants from the European Union to support green hydrogen initiatives across the value chain. These grants are helping to address some of the financial and technical challenges associated with green hydrogen production. Namibia’s efforts are particularly noteworthy. The country’s ambitious plans include leveraging its vast solar and wind resources to produce green hydrogen for both domestic use and export. Similarly, South Africa is exploring opportunities to integrate green hydrogen into its industrial processes, particularly in sectors such as mining and manufacturing. These efforts reflect a broader trend of international collaboration. European nations are increasingly recognizing the potential of Africa’s renewable energy resources and are providing financial and technical support to help the continent realize its green hydrogen ambitions. This collaboration is not only beneficial for Africa but also aligns with Europe’s goals of achieving energy security and reducing carbon emissions.
International cooperation will be a cornerstone of Africa’s green hydrogen success. The REPowerEU Plan is a clear example of how Europe is aligning its energy strategies with Africa’s renewable energy potential. By providing grants, technical expertise, and market access, Europe can play a pivotal role in scaling up green hydrogen production in Africa. However, more targeted funding and collaboration are needed to address the specific challenges faced by African countries. Public-private partnerships, for instance, can help mobilize the resources needed to develop infrastructure and establish regulatory frameworks. Additionally, international financial institutions and development banks can play a critical role in providing the capital required for these projects.
The development of green hydrogen projects in Africa has the potential to deliver significant environmental and economic benefits. By reducing reliance on fossil fuels, these projects can contribute to global efforts to combat climate change. Moreover, the production and export of green hydrogen can create new revenue streams for African countries, boosting their economies and creating jobs. For instance, the construction and operation of green hydrogen facilities will require skilled labor, creating opportunities for employment and capacity building. Additionally, the export of green hydrogen can help African countries diversify their economies and reduce their dependence on traditional energy exports such as oil and gas.
To fully realize the potential of green hydrogen, Africa must address the challenges facing the sector. This will require a coordinated effort involving governments, private sector players, and international partners. Key steps include developing clear policies to provide a stable environment for investment, building infrastructure for green hydrogen production, storage, and transport, and securing innovative financing mechanisms. Public-private partnerships and international collaboration will also play a critical role in overcoming technical and financial challenges.
Africa’s green hydrogen journey is still in its early stages, but the potential is undeniable. With 41 projects set to begin construction by 2030, the continent has an opportunity to position itself as a global leader in the green energy transition. While challenges remain, the growing interest from international partners and the alignment of global energy strategies with Africa’s renewable energy potential offer a promising path forward. By addressing key challenges and fostering international collaboration, Africa can unlock the full potential of green hydrogen, delivering environmental and economic benefits for generations to come.
