Africa’s Green Hydrogen Potential Set to Soar: Major Developments and Investment Opportunities Highlighted at African Energy Week 2024

Africa’s estimated green hydrogen production capacity is expected to grow to 50 million tons per year by 2035. The continent’s abundant renewable energy resources, attractive fiscal policies, and development potential make it a highly attractive market. With African energy demand projected to double by 2040, investment is expected to increase significantly across the continent.

This year’s African Energy Week (AEW): Invest in African Energy 2024 conference, taking place in Cape Town from November 4-8, will feature a dedicated hydrogen summit. Panel discussions will unpack the continent’s ongoing projects and future investment opportunities. The summit builds on the rising global demand for hydrogen, connecting partners, addressing challenges, and advancing project development in Africa.

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Africa stands to become a global green hydrogen hub given its strategic proximity to high-demand international markets and abundant resources. As global demand for alternative fuels grows—driven by the energy transition—Africa has become the investment market of choice for many countries worldwide. The EU market, for example, serves as the largest commercial opportunity for hydrogen projects in Africa, with the bloc targeting the import of 10 million tons of green hydrogen from international partners by 2030. Partners from the Middle East and the Americas have shown similar interest in Africa’s green hydrogen potential, leading to a slate of new projects in recent years.

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 aims to generate 200,000 tons per year to be exported via the SoutH2 Corridor—a planned hydrogen pipeline connecting Tunisia to Italy, Austria, and Germany.

Additionally, Mauritania 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 a 10 GW green hydrogen project in Mauritania—Project Nour. Plans are underway to implement a phased development approach, with the initial phase aiming to establish 3 GW of renewable capacity, generating up to 1.6 GW of electrolysis capacity to yield 150,000 tons of green hydrogen annually. Green hydrogen from the project will be used to meet domestic needs as well as 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 spearheaded by Egyptian utility company Infinity and energy company Conjuncta.

Meanwhile, the Daures Green Hydrogen Village project in Namibia is poised to become Africa’s first 100% net-zero green community. It will comprise solar, wind, hydrogen, and ammonia production systems and transportation networks. Set to be developed through 2032, the project will 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, therefore bringing a new energy source to the market,” stated NJ Ayuk, Executive Chairman of the African Energy Chamber.

The summit aims to explore how green hydrogen can achieve climate goals and foster global partnerships while showcasing the significant role that hydrogen will play in the future of African energy. Panel discussions, such as Unleashing the African Hydrogen Revolution and Creating a Sustainable African Hydrogen Value Chain, will explore 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.