Africa’s estimated green hydrogen production capacity is projected to surge to 50 million tons per year by 2035. The continent’s vast renewable energy resources, favorable fiscal policies, and significant development potential make it an attractive market for green hydrogen, with African energy demand expected to double by 2040, driving substantial investment across the region.
This year’s African Energy Week (AEW): Invest in African Energy 2024 conference, scheduled for November 4-8 in Cape Town, South Africa, will feature a dedicated hydrogen summit. The summit will include panel discussions that explore ongoing projects and future investment opportunities in Africa’s green hydrogen sector. The event aims to leverage rising global demand for hydrogen to connect partners, address challenges, and advance project development in Africa.
As the global demand for alternative fuels grows, driven by the energy transition, Africa has emerged as a preferred investment market for many countries worldwide. The European Union (EU) market, for example, presents the largest commercial opportunity for hydrogen projects in Africa, with the EU targeting the import of 10 million tons of green hydrogen from international partners by 2030. Interest from the Middle East and the Americas further underscores Africa’s potential in green hydrogen, leading to the initiation of numerous projects in recent years.
In a notable development this month, renewable energy company ACWA Power signed a memorandum of understanding (MoU) with the government of Tunisia to advance green hydrogen production in the country. The partnership aims to produce 600,000 tons of green hydrogen annually through a three-phase approach for export to Europe. The initial phase will generate 200,000 tons per year, to be exported via the SoutH2 Corridor – a planned hydrogen pipeline connecting Tunisia to Italy, Austria, and Germany.
Mauritania also unveiled ambitious plans to produce 12.5 million tons of green hydrogen annually by 2035. In May, transitional energy group Chariot finalized the feasibility study for Project Nour, a 10 GW green hydrogen project in Mauritania. The project’s initial phase will establish 3 GW of renewable capacity, generating up to 1.6 GW of electrolysis capacity to yield 150,000 tons of green hydrogen annually. This green hydrogen will meet domestic needs and international demand, leveraging Mauritania’s proximity to European markets. Other projects in Mauritania include Danish developer GreenCo Energy’s 35 GW Megaton Moon, renewable energy developer CWP Global’s 16-20 GW Aman project, and a 10 GW project led by Egyptian utility company Infinity and energy company Conjuncta.
Meanwhile, Namibia is set to become Africa’s first 100% net-zero green community with the Daures Green Hydrogen Village project. The project, which will integrate solar, wind, hydrogen, and ammonia production systems along with transportation networks, is set for development through 2032. It aims to provide a pilot proof of concept while eventually targeting large-scale green hydrogen production, exploration, and export to regional and global markets.
“Africa stands to become a global green hydrogen hub given the continent’s strategic proximity to high-demand international markets and abundant resources. While several countries across the continent have made great strides towards developing large-scale projects, significant investment opportunities remain. Africa should leverage rising global demand to build green hydrogen projects and related infrastructure, thereby bringing a new energy source to the market,” stated NJ Ayuk, Executive Chairman of the African Energy Chamber.
The AEW summit will explore how green hydrogen can achieve climate goals and foster global partnerships while highlighting the significant role hydrogen will play in Africa’s energy future. Panel discussions, such as “Unleashing the African Hydrogen Revolution” and “Creating a Sustainable African Hydrogen Value Chain,” will delve into the potential of hydrogen as a clean, sustainable energy source and its implications for Africa’s energy landscape. Panelists will discuss scalability, cost-effectiveness, and hydrogen’s potential as a catalyst for economic growth.
