Africa’s hydrogen horizon expands rapidly

Africa is poised to play a crucial role in the global green hydrogen market, with 41 projects projected for development in the next five years, according to a new report by the Energy Industries Council (EIC), a leading global trade association that provides data, insights, and events

However, the EIC warns that the hydrogen industry in Africa faces significant hurdles, such as securing offtake agreements, creating regulatory frameworks, and building reliable infrastructure.

The Africa OPEX Report 2025 highlights that North African nations, including Egypt, Algeria, and Morocco, are at the forefront, capitalizing on their abundant sunshine to drive green hydrogen production and export infrastructure investments.

Africa's hydrogen potential

These countries’ strategic positions across the Mediterranean from Europe—where Germany, Austria, and Italy plan to repurpose 3,300 km of existing gas infrastructure—are set to facilitate the import of 4 million tonnes of green hydrogen annually. Egypt’s National Green Hydrogen Strategy, for example, aims to capture 8% of the global hydrogen market and produce 10 million tonnes of green hydrogen annually by 2050, much of which will be exported.

Neil Golding, EIC’s director of Market Intelligence, urged caution in viewing the sector’s growth. “While the longer-term outlook looks positive for the hydrogen sector, no commercial-scale project has yet reached a final investment decision,” he said. “Offtake agreements need to be signed, and demand created for the projects to be commercially viable. At the same time, we see the need for regulatory frameworks to be established and the development of robust infrastructure.”

He further emphasised, “What is clear is that North Africa is well placed to support Europe’s hydrogen ambitions and could become a potentially significant supplier of the molecule in the future. Financial support is also coming in the form of EU grants for some African countries, notably Namibia and South Africa, across the hydrogen value chain, which points to a positive outlook for the sector.”

The report, written by EIC analyst Aqilah Shahruddin, provides an extensive analysis of Africa’s energy landscape, covering renewable energy projects, carbon capture, energy storage, and traditional sectors like oil, gas, and thermal power.

Africa’s vast resources and low production costs make it an ideal location for scaling green hydrogen production, powered by renewable sources like solar and wind. The Africa Green Hydrogen Alliance, which was launched in 2022 and includes Egypt, Kenya, Mauritania, Morocco, Namibia, and South Africa, aims to position the continent as a global leader in the sector.

According to the report, 41 hydrogen projects are expected to begin development by 2030. Sub-Saharan Africa is also advancing in the green hydrogen space, with Namibia spearheading large-scale projects. Namibia’s US$10bn hydrogen initiative will generate 15,000 construction jobs and 3,000 permanent positions. To the north, Mauritania’s Aman and Nour projects are expected to generate 40 GW of power for hydrogen production.

Despite the enormous potential, the report highlights several challenges to unlocking Africa’s green hydrogen potential, including the need for major infrastructure investments—such as pipelines, ports, and export facilities—and clear policy frameworks and regulatory support to attract investment.

The report stresses that the high upfront costs of green hydrogen projects necessitate international cooperation and financing initiatives. Europe’s REPowerEU Plan, which seeks to reduce dependence on Russian gas and aims to import 10 million tonnes of green hydrogen annually from Africa, signals that efforts are already underway. However, the report underscores that additional targeted funding and collaboration will be essential to scaling up hydrogen production in Africa.

Rebecca Groundwater, EIC’s head of external affairs, remarked, “If anything, this report, like many others the EIC produces, is a clear case for supply chain companies to look around the globe for opportunities rather than limiting themselves to markets they’re traditionally active in. This requires, of course, getting out of the comfort zone and for governments to help businesses understand different international markets, and Africa is no exception to that.”

She continued, “But of course, for businesses in Europe and elsewhere to move to Africa, there needs to be the right regulatory and financing conditions that help propel Africa’s hydrogen and, indeed, cleantech potential. But capital isn’t ample in Africa, and hence the need for international collaboration to open new financing channels in the continent.”

The green hydrogen industry is closely linked to Africa’s broader renewable energy growth. The report notes that 61.1 GW of renewable energy capacity is currently operational across the continent, with substantial investments in solar and wind. South Africa leads in solar capacity with 59 operational solar farms, while North African countries like Egypt and Morocco are driving wind energy expansion, adding 9 GW of wind capacity to the grid by 2024.