Friday, June 13, 2025

Africa steps boldly into the future of clean energy at the Green Hydrogen Summit 2025

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A bold new chapter in Africa’s clean energy story unfolded this week in Cape Town, where the continent’s most influential leaders, financiers, and energy experts have gathered for the Green Hydrogen Summit 2025 (June 13th -14th). In a powerful opening address, South Africa’s President Cyril Ramaphosa declared that Africa is “perfectly placed to become a major green hydrogen producer.” The significance of this moment wasn’t lost on attendees. This was not just another summit, it was a call to action, a signal that Africa intends not only to participate in the global energy transition but to lead it. 

Ramaphosa’s remarks spoke of opportunity, urgency, and ambition. He painted a vision of green hydrogen as a transformative force—one that marries Africa’s vast reserves of solar and wind energy with its strategic mineral wealth, especially in platinum group metals. It’s a formula that could decarbonize industries, create meaningful jobs, and enable economic growth that transcends borders. 

To date, South Africa has invested over R1.49 billion in its Hydrogen South Africa (HySA) programme. The President also unveiled the Pan-African Green Hydrogen Report, the most comprehensive document to date on the continent’s green hydrogen potential, based on 35 foundational studies. This is not merely academic research—it’s a roadmap. 

With over 52 large-scale green hydrogen projects already announced across the continent, the numbers are as impressive as the rhetoric. Analysts forecast that Africa could produce between 30 to 60 million tonnes of green hydrogen annually by 2050. The jobs payoff? An estimated 4 million positions across Africa Green Hydrogen Alliance member states. 

But what makes these declarations even more meaningful is the financial machinery beginning to churn behind them. At the summit, the SA-H2 Fund—a joint initiative supported by the Public Investment Corporation (PIC), the Development Bank of Southern Africa (DBSA), and the Industrial Development Corporation (IDC)—announced an initial investment of $20 million into the Hive Coega Green Ammonia Project. The fund has already secured R656 million (approximately $37 million) and holds up to $200 million in additional commitments for later-stage financing. 

The Hive Coega project, set to become South Africa’s first industrial-scale green ammonia facility, aims to use a 1 GW electrolyser powered by 3.6 GW of renewables to produce a million tonnes of green ammonia annually for export. Beyond the technicalities, the real story lies in its local impact: over 20,000 jobs created, a multi-billion-rand boost to infrastructure, and a critical step toward clean industry. 

Yet, amid this optimism, some hard truths persist. According to recent research, Africa has received public funding pledges totaling over $8 billion for green hydrogen projects, but 92% of that remains stuck at the commitment phase. Very little of the money has been disbursed, and many projects risk stagnation due to unclear policies, permitting delays, and infrastructure gaps. 

These issues aren’t theoretical—they’re already shaping real decisions. Western Cape Premier Alan Winde underscored the stakes when he warned that unless South Africa can solve its energy and water challenges, it won’t be able to attract the investment necessary to scale green hydrogen. 

Still, green hydrogen represents more than just an export product for Africa. Its potential extends into domestic transformation. Hydrogen can serve as a strategic enabler, helping to localize manufacturing, reduce reliance on fossil fuels, and even bring clean energy access to the 600 million Africans who still live without electricity. From green steel and clean aviation fuel to fertilizers and shipping, hydrogen unlocks sectors previously too carbon-intensive to reform. 

The road ahead will not be easy. Global data shows that just 2% of announced green hydrogen projects are reaching completion on schedule. Africa must not only attract the right capital but also create the enabling environment for swift implementation. This means harmonizing regulatory frameworks, expanding transmission infrastructure, and developing water-smart electrolyser locations – especially in arid regions. 

One of the most compelling aspects of this new hydrogen narrative is the spirit of regional collaboration. The Africa Green Hydrogen Alliance, which includes Egypt, Kenya, Mauritania, Morocco, Namibia, and South Africa, is working to synchronize efforts, share insights, and pool resources. Such partnerships will be vital in building transcontinental hydrogen corridors, common trade protocols, and unified standards. 

It’s also a matter of rewriting Africa’s historical role in global industrial systems. As President Ramaphosa pointed out with unapologetic clarity, Africa has long been treated as a place for extraction. Now, he said, is the time to shape a future where Africa no longer serves as a resource warehouse for others—but as a clean energy powerhouse in its own right. 

If fully developed, the hydrogen economy could support up to 40,000 jobs in South Africa alone by 2040. But this will depend on whether African countries can ensure value is created locally—not just from producing hydrogen, but from manufacturing the electrolysers, developing the technology, and training the workforce. 

There’s a great deal at stake. The Green Hydrogen Summit showed that Africa’s ambitions are not pie-in-the-sky—they are structured, data-driven, and backed by early investments, but they also require action, speed, and policy coordination. Blended finance, social inclusion, and deep regional integration will be key ingredients for success. 

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