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Hydrogen Market Databook 2025: Africa
Africa’s abundance of wind and sunshine means it has ideal conditions for green hydrogen production. The continent’s natural resources can be harnessed for renewable power, the building block for making green hydrogen. However, the sheer cost of both renewable power generation and green hydrogen production capacity construction can be staggering, and most African nations are financially unable to invest in these capital-intensive projects. Therefore, African nations will need buy-in from wealthier economies and/or companies, which has begun to some degree.
Most hydrogen project developments in Africa are centered in four countries: Egypt, Morocco, Namibia and South Africa. These nations represent 73% of active hydrogen project market share on the continent, with Egypt accounting for nearly 40% alone. The remaining 27% of active hydrogen projects in Africa are broken up between nearly a dozen different countries.
Algeria
The nation has ambitious plans to supply Europe with up to 10% of its hydrogen needs by 2040. The Algerian government unveiled its Roadmap for the Development of Hydrogen in March 2023. The country aims to produce and export 30–40TWh of hydrogen by 2040, with most exports destined for Europe. Algeria plans to accomplish this goal via a three-phase approach, which extends to 2050, to build market competitiveness:
- Phase 1 (2023–30): This phase includes pilot projects for hydrogen generation.
- Phase 2 (2030–40): Creation and expansion of the country’s domestic hydrogen production market.
- Phase 3 (2040–50): Industrialisation and market competitiveness.
To accomplish these objectives, Algeria is working with European governments to establish a pathway for reliable hydrogen supply. For example, the Algerian and German governments, in collaboration with the European Commission (EC), are in discussions to develop the SoutH2 Corridor, which would provide clean hydrogen to Germany via Tunisia, Italy and Austria. The project involves the modernisation and expansion of existing pipeline capacity to transport renewables-based hydrogen.
Germany also plans to invest upwards of $22n to build a 50MW green hydrogen pilot plant in Arzew, with Algerian NOC Sonatrach leading the project’s implementation. This investment will help Algeria begin to reach its hydrogen goals, as set out in Phase 1 of the roadmap. The country is also working with several other companies on renewable power/green hydrogen production projects; however, most are in early phases of development.
Egypt
Most capital investments in hydrogen and hydrogen derivative production are in Egypt. The country approved a green hydrogen strategy in late 2023 that calls for capturing 5–8% of the global hydrogen market by 2040. This pathway also aims at generating more than 40% of domestic electricity from renewable sources by the mid-2030s. The additional renewable energy capacity will lend itself to a surge in green hydrogen developments.
73% – Egypt, Morocco, Namibia and South Africa’s share of Africa’s active hydrogen projects
In January 2024, Egypt announced several tax incentives to spur domestic green hydrogen developments, which would provide tax credits for 33–55% off the tax paid on a project. Other incentives include VAT exemptions on project items (e.g., equipment, supplies and transport), exporting/importing products without needing a license or registration, and varying tax discounts on marine transport use, land rights and storage, among others. However, to qualify for these incentives, developers must meet at least 70% of the project’s cost via firms outside of Egypt, begin construction within five years of signing production agreements and adhere to local content usage of 20%.
Over the past few years, Egypt has witnessed a surge in hydrogen developments, with most located in the Suez Canal Economic Zone (SCZone). Since mid-2022, the SCZone has seen more than $50b in green hydrogen/ammonia project announcements: seven green hydrogen contracts were signed in February 2024, representing a potential of $40b of investment in the SCZone ($12b for pilot facilities and $29b for large-scale production) over the next ten years.
Other investments in Egypt include blue hydrogen production, waste-to-hydrogen facilities, renewable power infrastructure, green ammonia and green methanol production, and green fuels (e.g., eFuels) to decarbonise the country’s shipping sector. Notable active hydrogen projects in Egypt are detailed in Fig.1. These projects—not an exhaustive list—represent more than $82b in potential low-/zero-carbon hydrogen and hydrogen derivative projects in the country.
TABLE 1. NOTABLE ACTIVE LOW-/ZERO-CARBON HYDROGEN/AMMONIA AND METHANOL PROJECTS IN EGYPT
Morocco
Detailed in the country’s National Hydrogen Strategy, Morocco aims to increase green hydrogen production to satisfy domestic demand, with surplus hydrogen destined for the export market.
The nation’s goals are to fulfill domestic and export demand for green hydrogen and its derivatives, reaching 4TWh and 10TWh, respectively, by 2030, ramping up to 22TWh and 46TWh by 2040, and up to 40TWh and 115TWh by 2050. The National Hydrogen Strategy is based on three pillars10:
- 2020–30: This phase is focused on designated pilot projects using government and international financial support. Hydrogen production is destined for domestic use and exports to targeted countries.
- 2030–40: The medium term is aimed at finding ways to reduce green hydrogen production costs, as well as utilising green hydrogen in the country’s electricity sector.
- 2040–50: Phase 3 includes the expansion of green hydrogen use in various sectors, including residential and urban transport, heavy/long-haul vehicles and aviation, among others.
To reach these ambitious targets, Morocco has designated 1m hectares (10,000km²) of government land for the sole use of green hydrogen production. At the time of publication, the Moroccan Agency for Sustainable Energy has received more than 100 interested parties for potential investments in the country’s hydrogen value chain—i.e., Morocco's Green Hydrogen Initiative. The country has also signed numerous contracts to boost domestic green hydrogen production:
- TAQA Power’s $10b, 6GW integrated green hydrogen plant.
- OCP’s $7b green ammonia project in Tarfaya, which could produce up to 3mt/yr of green ammonia by the early 2030s. The project is in addition to the company’s $1.5b green ammonia plant being developed in Jorf Lasfar.
- The Ouarzazate solar thermal plant, which can produce 10,000t/yr of green hydrogen.
- HDF’s White Dunes project in the Dakhla-Oued Ed-Dahab region.
- Total Eren’s $10b, 1GW Chbika hydrogen production project in the Guelmim-Oued Noun region.
- CWP Global’s 1mt/yr Amun project in the Guelmim-Oued Noun region.
- The $850m HEVO Ammonia Morocco project to produce more than 180,000t/yr of green ammonia.
- The Nigeria–Morocco hydrogen pipeline, which will run parallel to the proposed $25b Nigeria–Morocco Gas Pipeline. Both pipelines would supply Europe with natural gas and/or clean hydrogen; however, completion on either pipeline is not expected until the mid-2040s.
South Africa
The nation’s Hydrogen Society Roadmap details six primary goals for South Africa’s hydrogen value chain development. These include decarbonising the transportation sector (e.g., heavy-duty vehicles, aviation, shipping and rail) and energy-intensive industries (e.g., steel, chemicals, mining and refineries), creating a hydrogen products manufacturing sector, utilising green hydrogen for the power sector and buildings, and creating a hydrogen export market.
The country’s goals are to produce 500,000t/yr of green hydrogen by 2030, as well as deploy 10GW of electrolysis capacity in the Northern Cape region by 2030 and up to 15GW by 2040.
To help facilitate these goals, South Africa plans to develop several hydrogen hubs through the Platinum Valley Initiative (PVI). The PVI’s feasibility study identified three regions to help grow the nation’s hydrogen economy:
- Durban/Richards Bay: This hub will focus on boosting the use of green hydrogen in the transportation sector (heavy- and medium-duty trucks). Green hydrogen will also be used in port activities, refining and electricity generation, among others.
- Johannesburg: The industrial and building cluster in the area will use green hydrogen for chemicals production, refining, iron and steel production, mining, public transport, and electricity.
- Mogalakwena/Limpopo: This hub will use green hydrogen to decarbonise the mining sector.
South Africa has conducted several feasibility studies for various green hydrogen projects, but the nation’s hydrogen plans are still in the early stages of development. More notable projects include the Boegoebaai green hydrogen project, the $10b ACWA Power and IDC green hydrogen plant, and the nearly $6b HIVE Energy green ammonia plant, among others.
Other African nations
Due to an immense amount of solar and wind energy, Mauritania has attracted more than $75b in renewable power and green hydrogen production projects. The three primary developments in the country include the $40b AMAN green hydrogen project; Infinity Power, Conjuncta and Masdar’s $34b project near Nouackchott (the four-phase project includes 10GW of electrolyser capacity to produce 8mt/yr of green hydrogen and other renewable fuels); and Total Eren and Chariot’s 10GW Project Nour development. If realised, these projects will add more than 12mt/yr of domestic green hydrogen production capacity by the mid-2030s.
Namibia also plans to utilise its sunny climate to increase hydrogen production—the nation sees more than 300 days per year of sunshine. Therefore, Namibia will utilise solar power to produce hydrogen for both domestic consumption and export. The country’s goal—set out in the nation’s national hydrogen strategy—is to produce 10–15mt/yr of hydrogen by 2050. This would enable Namibia to satisfy domestic demand as well as export surplus production.
Most African nations are financially unable to invest in these capital-intensive projects
The country’s most capital-intensive project is the $10b Hyphen Hydrogen Energy project. Located in the Tsau Khaeb National Park, the fully integrated project will generate approximately 7GW of renewable energy to produce 350,000t/yr of green hydrogen and 2mt/yr of green ammonia. Other notable projects include the Daures green hydrogen village (where green ammonia production could reach 700,000t/yr by the early 2030s), HDF’s hydrogen-based power plant in Swakopmund and the HyRail project, Namibia’s first hydrogen-powered train.
In Tunisia, TE hydrogen plans to build a 200,000t/yr green hydrogen plant that will send green hydrogen to Europe via the SoutH2 Corridor pipeline. The facility can scale up to 1mt/yr if needed.
To help accomplish renewable energy goals set out in its 2035 strategy, Djibouti plans to develop the Green Star Hydrogen Hub. The project includes the construction of 5–10 GW of renewable energy generation to produce green hydrogen and green hydrogen derivative fuels.
In late 2023, Kenya unveiled its Green Hydrogen Strategy and Roadmap for Kenya, detailing a two-stage approach to increasing green hydrogen development in the country. Phase 1 (2023–27) focuses on developing a domestic hydrogen market. This phase includes developing policies and regulatory frameworks for green hydrogen production and use, as well as building the nation’s first commercial-scale green hydrogen plant. Phase 2 (2028–30) focuses on growing the domestic green hydrogen market, instituting hydrogen pilot projects for the power and transportation sectors, producing zero-carbon shipping fuels, and exploring the export of green fertilisers. Post-2032, Kenya plans to further expand green hydrogen use into other industries such as steelmaking, along with boosting exports.
Angola plans to use existing hydroelectric power to produce green hydrogen and derivatives, primarily green ammonia. Phase 1 will produce up to 400,000t/yr of green ammonia, with future phases expanding production capacity to match demand. This project is part of Angola’s Vision 2050 initiative.
Lee Nichols is Vice-president, content, at Gulf Energy Information.
Read more from the 2025 Hydrogen Market Databook:
Author: Lee Nichols
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