Africa poised to lead in global green hydrogen development, says Energy Industry Council
Reports suggest Africa is to become a “key player” in the green hydrogen market, with 41 projects in development over the next five years.
The Africa OPEX Report 2025, published by trade association Energy Industries Council (EIC), notes that North African countries, including Morocco, Egypt and Algeria are currently leading efforts.
Neil Golding, EIC’s Director of Market Intelligence, warned that optimism should be “viewed with care”, but clarified 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.”
The challenges such as the need for major infrastructure investment still remain and may temper the continent’s ambitions.
Further south, other countries such as Namibia and South Africa are receiving financial support through EU grants across the hydrogen value chain, “which points to a positive outlook for the sector,” Mr Golding continued.
Launched in 2022, the government-led Africa Green Hydrogen Alliance is formed of six countries – Egypt, Kenya, Mauritania, Morocco, Namibia, and South Africa – and aims to position the continent as a global leader in the sector
In 2021, Namibia announced a green hydrogen project estimated to cost approximately $9.4 billion, with production anticipated to begin in 2026 along with the creation of 15,000 jobs. A year later in 2022, South Africa said that it planned to support a pipeline of green hydrogen projects worth around $17.8 billion over the next decade.
EIC’s report notes that Africa offers “fertile ground” for scaling the production of green hydrogen, particularly as it is produced using renewable energy sources such as solar and wind. Other factors, such as leveraging abundant resources coupled with low production costs are also advantageous.
Challenges that need to be addressed to “fully realise Africa’s green hydrogen ambitions,” include the need for major infrastructure investments, and the development of clear policy frameworks and regulatory support to attract investments, the report said.
EIC’s Head of External Affairs, Rebecca Groundwater, added: “If anything, this report […] 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.”
