Africa Poised to Lead Global Green Industrialization with Green Hydrogen Dev’t – ENA English

Addis Ababa, January 25, 2025 (ENA)—Africa is set to lead in global green hydrogen development with 41 projects expected to enter development over the next five years.

According to a new report published by the Energy Industries Council (EIC), Africa is set to become a key player in the global green hydrogen market.

However, the EIC, the world-leading trade association and purveyor of data, insights, and events, warns that despite its promise, the hydrogen sector in Africa faces serious challenges.

The bottlenecks in this sphere include securing offtake agreements, establishing regulatory frameworks, and building robust infrastructure.

The Africa OPEX Report 2025 reveals that North African countries are leading the efforts, with their abundance of year-round sunshine providing ample opportunities for investments in green hydrogen production and export infrastructure.

The report – written by Aqilah Shahruddin, an EIC analyst for operational assets and decommissioning – provides a comprehensive analysis of Africa’s energy sector, covering renewable energy projects, carbon capture, energy storage, and traditional energy sectors such as oil, gas, and thermal power.

Africa offers fertile ground for scaling the production of green hydrogen, produced using renewable energy sources like solar and wind, as it continues to leverage its abundant resources and low production costs.

According to the report, 41 hydrogen projects are expected to enter development between now and 2030.

Sub-Saharan Africa is also developing green hydrogen capabilities, with countries like Namibia leading with large-scale projects.

Despite the massive potential, the report identifies several challenges that need to be addressed to fully realize Africa’s green hydrogen ambitions, including the need for major infrastructure investments — such as pipelines, ports, and export facilities — and the development of clear policy frameworks and regulatory support to attract investments.

The upfront costs of green hydrogen projects call for international cooperation and financing initiatives, the report said.

Europe’s REPowerEU Plan, designed to reduce the continent’s dependence on Russian gas and which aims to import 10 million tonnes of green hydrogen every year from Africa, is a sign that efforts are already in place.

However, the report notes that more targeted funding and collaboration will be key to scaling up hydrogen production in Africa.

Rebecca Groundwater, EIC’s Head of External Affairs, emphasizes the importance of global market exploration for supply chain companies, including Africa.

She highlights the need for supportive regulatory and financing conditions to unlock Africa’s hydrogen and cleantech potential, advocating for international collaboration to address limited capital and open new financing channels.

The green hydrogen sector is closely tied to Africa’s broader renewable energy growth. The report notes that 61.1 GW of renewable energy capacity is currently operational across the continent, with significant investments in solar and wind projects.

South Africa leads in solar capacity, with 59 operational solar farms, it was indicated.

But the report says that Africa will need to invest in power storage in tandem with production.

 Africa’s energy storage capacity has grown from 180 MW in 1979 to 4.2 GW in 2023, with South Africa contributing 3.6 GW. The sector, however, faces significant challenges due to a lack of clear regulations.

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