Driven by unmatched renewable energy resources and soaring international demand for decarbonised fuel, Africa is taking slow but steady steps to position itself as a strategic powerhouse in the nascent global green hydrogen (GH2) economy.
Green hydrogen fuel is a clean energy source produced by splitting water using renewable electricity, offering a zero-emissions alternative to fossil fuels.
Unlike grey hydrogen (from natural gas) or blue hydrogen (from natural gas with carbon capture), green hydrogen emits no greenhouse gases during production.
Global hydrogen demand is projected to swell to between 500m and 660m tonnes by 2050 with Africa projected to meet 5–10% of the demand.
The continent, particularly its major economies, is aggressively capitalising on this shift, potentially generating $60–120bn in GDP.
Africa has superior solar irradiation and coastal wind capacity. This allows it to produce GH2 at competitive costs, with some regions projecting figures as low as €2/kg by the end of this decade.
But the total infrastructure investment required to unlock this potential is estimated at between $22-30bn yearly through 2030.
Some African nations are aggressively moving from ambition to execution.
Namibia
Namibia is leading sub-Saharan Africa’s charge with its flagship Hyphen Hydrogen Energy project, an ambitious development with an estimated total investment of $9.4bn.
Located in the Tsau Khaeb National Park, the project plans to install 2 GW of capacity and targets the production of up to 2m t/yr of green ammonia by 2030.
This scale of production is underpinned by the country’s ability to achieve a projected GH2 cost as low as $1.5/kg.
Projections suggest Namibia could achieve one of the lowest green hydrogen production costs globally by 2030, second only to Chile.
A critical milestone was reached in March 2025 with the commissioning of the HyIron–Oshivela project, sub-Saharan Africa’s first green hydrogen-powered iron facility.
Egypt
North Africa’s Egypt has set one of the world’s most aggressive targets, aiming for 3.2m t/yr of renewable hydrogen production by 2030, which will require a massive investment of $175bn across 32 projects.
The country’s commitment, showcased at COP27 in November 2022, has seen its Suez Canal Economic Zone (SCZONE) become the primary hub, attracting over $215bn in FDI between 2021 and 2023.
By 2030, Egypt plans to install 27GW of electrolyser capacity which could make it a strategic hub for green fuels.
The country successfully exported the world’s first green ammonia shipment to India in November 2023.
Nigeria
West Africa’s giant, Nigeria, is mobilising its massive potential, which includes both abundant solar resources and 210 Tcf of natural gas reserves.
Nigeria’s roadmap seeks to attract $5bn in private investments and generate $10bn in annual revenue from hydrogen exports by 2035. This is also expected to simultaneously create up to 500,000 new jobs by that year.
In a first major move, a major €7.6bn green hydrogen project was unveiled.
Furthermore, the country has the long-term potential to produce over 4m t/yr of green ammonia by 2060 to bolster its fertiliser industry.
On the whole, this collective effort is aimed at meeting Europe’s target to import 10m tonnes of renewable hydrogen by 2030, placing Africa as a key energy transition partner.
But there are a few key challenges.
Production and challenges
- Electrolysis technology: Requires large amounts of clean electricity and water. The most common types are alkaline and PEM (proton exchange membrane) electrolyzers.
- Cost barrier: Currently, green hydrogen is more expensive than fossil-based alternatives due to high electricity costs and limited infrastructure.
- Infrastructure needs: Transporting and storing hydrogen safely requires new pipelines, storage tanks, and fueling stations
Globally, Europe and Asia are leading the charge with national hydrogen strategies and large-scale pilot projects.