Africa is seeing the emergence of several green hydrogen hubs, but the trio of Morocco, Egypt, and South Africa currently appears best positioned to win the race, with Namibia a very aggressive outsider.

A New African Energy Map

The rise of green hydrogen in Africa is part of the global decarbonization strategy, with the European Union aiming for 10 million tons of annual imports by 2030. In this context, the continent has major advantages: sunshine, wind potential, and vast areas available for solar-wind complexes coupled with electrolyzers.

An H2 Atlas-Africa study estimates that West Africa could produce up to 165,000 TWh of green hydrogen per year, including 120,000 TWh at a cost of less than €2.50 per kilogram, well below current European costs.

As a result, Africa is positioning itself as a future export hub for decarbonized energy to Europe, while also meeting its own electricity and industrial needs.

Three major hubs already identified

A sectoral analysis reveals three major African hubs: the Morocco-Mauritania corridor, Egypt, and Southern Africa around South Africa and Namibia. These hubs combine abundant natural resources, maritime access, and the political will to attract massive investments in renewable energy and hydrogen.

In Mauritania, groups like Chariot and CWP Global are developing projects with up to 40 GW of renewable energy capacity to power electrolyzers, covering an area of nearly 22,900 km², representing tens of billions of dollars in investment. These integrated platforms (green electricity production, electrolysis, and conversion into derivatives such as ammonia) foreshadow export-oriented “hydrogen valleys.”

Morocco: A Pioneer with Concrete Pilot Projects

Morocco stands out with its advanced strategic framework and a first industrial pilot project slated for commissioning as early as 2026. The “Power to Hydrogen (PtX)” project, led by Masen and financed to the tune of €300 million by the German bank KfW, aims to produce 10,000 tons of green hydrogen per year in the Guelmim-Oued Noun region, via an electrolyzer of at least 100 MW powered by 200 MW of solar and wind energy.

The Kingdom is simultaneously deploying the “Offre Maroc” program, designed to structure the entire green hydrogen sector, particularly in the southern provinces, with six projects awarded to five international consortia for a total investment estimated at 319 billion dirhams (approximately €30.8 billion). This integrated approach, combining industrial planning, external financing, and an export-oriented strategy, positions Morocco among the most credible candidates for African leadership.

Egypt: Industrial Hub and Corridor to Europe

Egypt is emerging as a future green hydrogen hub thanks to the Suez Canal, its port infrastructure, and its already central role in LNG. Numerous projects have been announced there, centered around industrial and port complexes, with international consortia aiming to produce derivatives (ammonia, e-fuels) for export.

Egypt is also positioning itself along future hydrogen export corridors to Europe, in line with European plans for pipelines and large-scale imports of decarbonized hydrogen. This combination of local industrialization and connection to external markets strengthens the country’s credibility as a key player on the African hydrogen map.

South Africa: Key Pilot Projects but a Lag in Implementation

In South Africa, the Council for Scientific and Industrial Research (CSIR) is leading the development of a large green hydrogen production zone between Saldanha and Namakwa, based on desalination powered by renewables and a 1 GW electrolysis module. This facility could produce between 72,000 and 88,000 tons of green hydrogen per year, converted into ammonia for local use and export, with commissioning targeted for 2029.

The country already has dedicated financial mechanisms such as the SA-H2 Fund, supported by the Development Bank of South Africa, IDC, and European donors, including a €50 million pledge from the Netherlands and infrastructure support from KfW. However, as in the rest of the continent, the gap between announcements and operational projects remains significant, with many projects still in the preliminary stages.

Namibia: The Outsider Aspiring to Become a Continental Hub

Namibia is pursuing an aggressive strategy to become a “continental hub for green industrialization” in hydrogen. Led by Green Hydrogen Commissioner James Mnyupe, this initiative aims to pool international funding (UNIDO, Green Climate Fund, Climate Parliament, etc.) and coordinate projects regionally.

The country is developing a flagship green hydrogen project valued at $9.4 billion, expected to create approximately 15,000 jobs during construction and 3,000 permanent positions, 90% of which will be reserved for Namibians. It is also one of the few countries where projects have already been commissioned: two operational facilities, while more than 70 projects across the continent are still in the announcement or planning stages.

A Political Alliance: The Africa Green Hydrogen Alliance

To have a significant impact on the global race, six countries – Kenya, South Africa, Namibia, Egypt, Morocco, and Mauritania – have created the Africa Green Hydrogen Alliance. This platform aims to harmonize regulatory frameworks, share best practices, and attract capital by presenting a united front to major international buyers.

The alliance aspires to make the continent the leading hub for green hydrogen development, both for domestic use (electricity, fertilizers, green steel) and for export to Europe and Asia. It thus contributes to structuring the debate around a just transition, one that not only produces for the Global North but also strengthens African energy and industrial security.

Ambitions vs. Reality: The Experts’ Warning

Despite the flurry of announcements, a recent report highlights that only two projects in Namibia have actually become operational, while 76 projects—primarily in Egypt, Morocco, and South Africa—remain at the study stage or as political promises. Faced with this gap between ambitions and reality, organizations like the Energy Intelligence Committee recommend scaling back megaprojects to consolidate legal frameworks, markets, and financing.

The risk for African states would be to commit massive resources (land, water, infrastructure) to projects that do not reach the operational phase or do not sufficiently benefit local economies. Policymakers are therefore urged to prioritize well-designed pilot projects, balanced partnerships, and a gradual ramp-up.

Which hubs are leading the way?

Given the pilot projects, secured financing, and connections to European markets, the trio of Morocco, Egypt, and South Africa, complemented by Namibia, now appears to be the core of the race for African green hydrogen hubs.

Morocco:

• The “Power to Hydrogen (PtX)” pilot project will be operational by 2026, targeting 10,000 tons/year of green hydrogen.
• Structured financing with KfW (€300 million), the national “Offre Maroc” program, and six additional projects totaling over €30 billion.

Egypt:

• Multiple projects in industrial and port zones, linked to the Suez Canal and existing maritime trade routes.
• Strong appeal for partnerships with Europe, particularly in the context of hydrogen import corridors.

South Africa:

• Saldanha-Namakwa pilot zone with a 1 GW electrolyzer and anticipated production of up to nearly 88,000 tons/year.
• SA-H2 Fund mobilizing DBSA, IDC, and European donors to secure investments in the sector.

Namibia:

• A flagship project worth $9.4 billion and two projects already in operation, making the country one of the few concrete examples on the continent.
• Continental Green Industrialization Hub initiative, supported by UNIDO, the Green Climate Fund, and pro-transition parliamentary networks.