Category: Energy

Green hydrogen — produced by splitting water using renewable electricity — has emerged as one of the most debated technologies in the global energy transition. For Africa, which holds abundant solar and wind resources, it represents both an opportunity and a risk.

**What is green hydrogen?**

Unlike grey hydrogen (produced from natural gas) or blue hydrogen (with carbon capture), green hydrogen uses electrolysis powered by renewable energy to split water into hydrogen and oxygen. It produces no direct carbon emissions.

**Why Africa?**

Several African countries sit at the intersection of three prerequisites for competitive green hydrogen production: strong solar irradiance, available coastal land for export infrastructure, and growing pools of technical labour.

South Africa, Namibia, Morocco, and Egypt are the most advanced in terms of announced projects. Namibia’s Hyphen Hydrogen Energy project, for instance, aims to produce 300,000 tonnes per year for export to Europe by the early 2030s.

**The challenges**

Green hydrogen is still expensive. Current production costs in Africa range from $3–6 per kilogram, compared to $1–2 for fossil-fuel-derived hydrogen. Electrolysers are capital intensive. Offtake agreements with European buyers are long-dated and complex.

**The industrialisation question**

There is a growing debate within African policy circles about whether green hydrogen should be exported as a raw commodity or used domestically to power industrial processes — steel, ammonia, fertiliser — that could anchor manufacturing on the continent.

**What to watch**

The next 18 months will see several African hydrogen projects reach final investment decisions. Their terms — particularly the share of output destined for domestic use versus export — will shape the technology’s legacy on the continent.

CAPE TOWN — South Africa has launched its most ambitious clean energy program to date: a R120 billion ($6.5 billion) joint venture to establish the Northern Cape Province as a premier hub for green hydrogen production. Funded by domestic infrastructure bonds, German development funds, and private consortiums, the project seeks to utilize the region’s abundant solar and wind assets to split water molecules and create green liquid ammonia.

The program aims to solve two crises simultaneously: domestic power supply constraints (by feeding excess capacity into Eskom’s grid) and long-term economic transition (by creating a new green commodity for export to heavy industries in Europe).

Sarah Jenkins, Energy Policy Analyst, notes: “Green hydrogen has long been touted as the future, but high capital expenditures and transport logistics have held it back. South Africa’s advantage lies in its existing Fischer-Tropsch technology infrastructure, pioneered by Sasol, which can be adapted to synthesize green fuels. This is a massive leap forward in making the energy transition commercially viable.”

Yet, hurdles abound. Electrolyzers require immense quantities of purified water—a scarce resource in the arid Northern Cape. To overcome this, the plans include a seawater desalination plant on the West Coast, connected by a 200km pipeline, adding substantial cost and environmental regulatory hurdles.

“We are also competing against nations like Chile, Australia, and Saudi Arabia, which have massive subsidies,” warns Jenkins. “South Africa must move fast to secure long-term off-take agreements with steelmakers in Germany and Japan if it wants to lock in its early-mover advantage.” Construction of the first electrolyzer arrays is scheduled to begin in early 2027.

ASWAN — Egypt has completed the third expansion phase of the Benban Solar Park, situated in the Western Desert, lifting its total capacity to 2.2 Gigawatts. Spanning over 37 square kilometers, the facility is now one of the largest solar installations in the world, visible from space and capable of powering over 2 million homes.

The expansion was executed by a consortium of international developers, including Norway’s Scatec, Saudi Arabia’s ACWA Power, and Egypt’s state-owned renewable energy agency.

Sarah Jenkins, Energy Policy Analyst, details the implications: “Egypt is no longer just aiming for domestic energy self-sufficiency; it is positioning itself as a vital green electricity link between Africa, Europe, and the Middle East. High-voltage subsea cables are already under construction to connect Egypt’s grid with Greece and Cyprus, allowing the export of solar energy to European markets.”

The project serves as a model for public-private partnership. The Egyptian government provided long-term land leases, guaranteed 25-year feed-in tariffs, and constructed state-of-the-art grid substations, mitigating initial capital risks for international developers.

Nonetheless, grid storage remains the technical bottleneck. Solar power peaks during the day, whereas maximum domestic demand is in the evening. Egypt is exploring hydro-pumped storage projects and large-scale battery systems to balance grid frequency and ensure steady export capacities.