Africa's Growing Role in Green Hydrogen: Opportunities and Challenges Ahead
Key Ideas
  • Africa is on track to become a major player in the global green hydrogen market, with 41 projects set to enter development in the next five years.
  • North African countries like Egypt, Algeria, and Morocco are leading the efforts due to their abundant sunshine, aiming to produce billions of tons of green hydrogen for export.
  • Despite the promising outlook, challenges such as securing offtake agreements, regulatory frameworks, and infrastructure development need to be addressed for the sector's commercial viability.
  • The continent also faces the need for international cooperation, financing initiatives, and clear policy frameworks to fully realize its green hydrogen ambitions.
Africa is poised to play a significant role in the global green hydrogen market, with 41 projects expected to emerge in the next five years, as detailed in the Africa OPEX Report 2025 by the Energy Industries Council (EIC). North African countries are at the forefront of these efforts, leveraging their solar resources for green hydrogen production and export. However, challenges like establishing regulatory frameworks and ensuring infrastructure development remain critical hurdles. Despite the optimism, no large-scale project has yet received final investment approval, highlighting the need for offtake agreements and demand creation. Financial support from the EU, particularly for countries like Namibia and South Africa, signals a positive future for the sector. The report underscores the importance of international cooperation and financing initiatives to propel Africa's green hydrogen industry forward. While the continent holds great potential for green hydrogen production, clear policy frameworks, infrastructure investments, and regulatory support are essential for success. The Africa Green Hydrogen Alliance, involving countries like Egypt, Kenya, and South Africa, aims to position Africa as a global leader in this sector. The report also stresses the need for power storage investments in parallel with production to address the continent's growing renewable energy capacity and challenges in the energy storage sector.
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