Expanding Africa’s Renewable Energy Capacity
Green hydrogen presents a significant opportunity for Africa’s sustainable development, offering a pathway to expand its renewable energy capacity while meeting its climate change commitments. As the continent seeks to transition towards a low-carbon economy through solar, wind, hydro, and geothermal energy, green hydrogen can be a game-changer in accelerating this commitment. Several African nations are looking to leverage green hydrogen to fulfill their renewable energy development goals, positioning themselves as key players in the global green hydrogen market.
Why Africa is Positioned for Green Hydrogen Leadership
Africa is endowed with some of the world’s best renewable energy sources, particularly solar and wind energy, which are abundant in regions such as North Africa, the Sahara, Southern, and Eastern Africa. Given that green hydrogen production requires both an abundance of and affordable renewable energy, Africa stands as an ideal location for its development. Beyond its production potential, green hydrogen can offer solutions to off-grid communities and support industrial decarbonization, particularly in sectors such as heavy transportation. Furthermore, the continent has the potential to become a significant green hydrogen exporter, with demand projected to reach 500 million tons annually, driven by key regions such as Europe and Asia. In addition to economic opportunities, green hydrogen could contribute to socio-economic and environmental benefits, potentially adding between 6-12% to Africa’s GDP and reducing emissions by up to 40%.
Leading African Countries in Green Hydrogen Development
Several African nations are actively advancing green hydrogen development. South Africa, with its well-developed industrial infrastructure, is poised to become a regional and continental leader in green hydrogen, particularly in mining and manufacturing. The country has established its Hydrogen Society Roadmap to foster collaboration with both local and international partners to develop its green hydrogen production capabilities. Namibia is pursuing large-scale renewable energy projects aimed at exporting green hydrogen to Europe while simultaneously developing its economy and meeting its Paris Agreement commitments, particularly Article 6.4. In East Africa, Kenya plans to integrate green hydrogen into its domestic energy system, aiming for 100% renewable energy use by 2030. The country also seeks to replace diesel with cleaner alternatives, especially in the heavy transport sector. Nigeria, on the other hand, is looking to diversify its energy mix by leveraging the renewable energy potential of its northern regions, incorporating hydrogen into its Nigeria Energy Transition Plan (NETP).
In North Africa, Egypt is expanding its green hydrogen investments and production by harnessing renewable energy resources in the Red Sea and Sinai region. The country is collaborating with international partners, such as Siemens, to develop its hydrogen production and export capabilities. Morocco is also scaling up its renewable energy targets, integrating green hydrogen into projects such as the Noor Ouarzazate Solar Complex. Meanwhile, Mauritania’s AMAN project has attracted around $40 billion in investment to generate 30 GW annually from wind and solar energy. Other countries, including Ethiopia, the Democratic Republic of the Congo (DRC), Angola, Tunisia, and Algeria, are either developing national hydrogen strategies or have already established them.
Key Challenges Facing Green Hydrogen Development in Africa
Despite its immense potential, Africa’s green hydrogen sector faces several challenges, including high initial investment costs, inadequate infrastructure, and evolving technology. Many African countries struggle with limited financial resources, which slows project development and scalability. Weak energy grids further hinder efficient hydrogen production and distribution, while policy and regulatory uncertainties create market instability and discourage investment. Additionally, a shortage of skilled professionals in renewable energy and hydrogen logistics limits the sector’s growth and job creation.
Several key projects exemplify these challenges. South Africa’s Boegoebaai project, one of the largest planned green hydrogen developments, faces high capital requirements and infrastructure limitations. Support from Sasol and the Northern Cape government aim to address funding delays and an unreliable energy grid. Similarly, Namibia’s $10 billion Hyphen Hydrogen Energy project faces policy and regulatory uncertainties, making investment riskier. Egypt, despite its ambition to become a major green hydrogen export hub, faces a shortage of skilled professionals which can affect hydrogen-related fields, which poses a significant challenge. Furthermore, energy distribution issues, particularly in rural areas, complicate the widespread adoption of green hydrogen, affecting its role in Africa’s low-carbon transition. Addressing these barriers will be critical in unlocking Africa’s green hydrogen potential and positioning the continent as a key player in the global hydrogen economy.
Opportunities for Advancing Green Hydrogen in Africa
While challenges remain, the opportunities for advancing green hydrogen in Africa are vast. The continent’s abundant renewable energy resources provide a unique chance to produce green hydrogen at competitive costs, making Africa a viable global leader in the sector. By diversifying energy sources, green hydrogen enhances energy security, reduces reliance on fossil fuels, and stabilizes energy prices. Africa’s strategic location also supports the export of green hydrogen to growing markets in Europe and Asia, creating new economic opportunities and driving job growth. Additionally, green hydrogen aligns with Africa’s climate goals by fostering decarbonization and technological advancement.
International investment and partnerships can further accelerate green hydrogen development, facilitating technology transfer and capacity building. Morocco, for instance, is leveraging its renewable energy potential to position itself as a leader in green hydrogen production, with plans to export 10 terawatt-hours (TWh) of green hydrogen by 2030 and expand to 115 TWh by 2050. This initiative is expected to create approximately 30,000 new jobs in the sector, contributing to economic growth and energy diversification. Senegal is another African nation exploring green hydrogen, integrating it into its energy transition strategy. The European Investment Bank (EIB) estimates that Africa could achieve a green hydrogen production capacity exceeding 50 million tonnes per annum by 2035, underscoring the continent’s potential to become a major global player in the sector.
The Way Forward: Unlocking Africa’s Green Hydrogen Potential
To unlock the full potential of green hydrogen, Africa must focus on developing renewable energy infrastructure. Governments should prioritize large-scale solar and wind projects, alongside necessary grid improvements, to support hydrogen production and distribution. South Africa’s Integrated Resource Plan (IRP) aims to expand renewable energy capacity to 17.8 GW by 2030, a crucial step toward green hydrogen development. On a continental scale, the African Union’s Agenda 2063 emphasizes sustainable energy infrastructure, aligning with the continent’s hydrogen ambitions.
Clear policies and regulatory frameworks will be essential in attracting investment, including tax incentives, subsidies, and regulations that support the hydrogen economy. Morocco’s national hydrogen strategy provides a roadmap for scaling up production and export targets. The Africa Renewable Energy Initiative (AREI) further promotes renewable energy development, including green hydrogen. International collaborations with European, Asian, and Middle Eastern partners, such as Germany, can provide financing, technology, and market access. Germany’s national hydrogen strategy already supports global partnerships, including with African nations.
Technological advancements in green hydrogen production, storage, and transportation must also be prioritized. The African Development Bank’s Africa Energy Market Analysis (AEMA) identifies technological gaps and opportunities in Africa’s energy sector, including green hydrogen. Infrastructure development for hydrogen transportation, including shipping terminals for exports, will be crucial. Namibia’s Hyphen Hydrogen Energy project is already working on developing export infrastructure to supply green hydrogen to Europe. Additionally, the African Continental Free Trade Area (AfCFTA) presents an opportunity to create a unified market for hydrogen trade across Africa.
Workforce development and capacity building must also be a priority to ensure that Africa develops a skilled labor force capable of driving the green hydrogen industry forward as part of a just transition. Egypt has signed over 32 memorandum of understanding in light with its energy policy that in part aims to train professionals in hydrogen-related fields. Similarly, the African Union’s Skills Initiative for Africa seeks to upskill workers across the continent, fostering talent for the growing green energy sector.
Conclusion
As global demand for green hydrogen continues to rise, Africa has a unique opportunity to position itself as a leader in sustainable energy production and exports. By addressing existing challenges and implementing forward-thinking policies, the continent can harness green hydrogen to drive economic growth, support industrial decarbonization, and contribute to a just and equitable energy transition.
