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No commercial-scale project has yet reached a final investment decision, says EIC director As many as 41 green hydrogen projects will commence construction in Africa between now and 2030, according to the Energy Industries Council (EIC), a global energy trade association. However, the sector faces serious challenges, such as securing offtake agreements, establishing regulatory frameworks, and building robust infrastructure. North African countries, including Egypt, Algeria, and Morocco, have an abundance of year-round sunshine that offers ample opportunities for investments in green hydrogen production and export infrastructure, the Africa OPEX report 2025 said. No financial details of individual projects or total investment estimated in the sector were given. The countries are located across the Mediterranean from Europe, as Germany, Austria, and Italy seek to repurpose 3,300 km of existing midstream gas infrastructure in North Africa to import 4 million tonnes yearly of green hydrogen to the continent. While the longer-term outlook looks positive for the hydrogen sector, no commercial-scale project has yet reached a final investment decision, Neil Golding, Director of Market Intelligence, EIC, said. Countries such as Namibia and South Africa are benefiting from European Union (EU) grants to support hydrogen projects across the value chain, he said, adding this points to a positive outlook for the sector. Nonetheless, the upfront costs of green hydrogen projects call for international cooperation and financing initiatives. 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. More targeted funding and collaboration will be key to scaling up hydrogen production in Africa, the EIC stated. |
