Q&A: How renewables define Africa's hydrogen potential

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Green hydrogen is a resource-based technology, not a development-level-based one, says Mercy Maina, in an interview with Renewables Rising. She points out that Africa's abundant renewables make it the ideal continent to lead global green hydrogen production. But to realise this potential, capital needs, policy frameworks and skills gaps first need addressing.

• Ms Maina is an editor for Hydrogen Rising, our sister publication that offers news, data and insights to professionals in Africa’s green hydrogen sector.

• Most green hydrogen projects in Africa are in remote, resource-rich areas, far from national grids, and do not divert power from homes, she says. Instead, they use dedicated renewable energy infrastructure.

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There's a common belief that hydrogen technology is still young for Africa and that we are far from widely adopting it. Many projects are for export. What is your opinion on this view that Africa isn't ready for hydrogen?

Ms Maina: This view primarily stems from a financing perspective. Green hydrogen is capital-intensive, and developed countries have greater financial potential than Africa. However, this argument overlooks a crucial point: green hydrogen is a resource-based technology, not a development-level-based one. Regardless of a country's level of development, it cannot produce green hydrogen without renewable energy sources. This explains why Europe, despite its technology and finance capabilities, is turning to Africa, which possesses abundant renewable resources but lacks capital.

Could you provide a rough idea of how many projects are currently under construction, beyond those announced? Which ones are actively progressing?

Ms Maina: Africa is making progress. Our Hydrogen Rising Tracker indicates at least 100 announced green hydrogen projects across the continent at various stages.  At least 4 are operational, 3 have reached final investment decision (FID), allowing them to progress to construction, about 39 are in feasibility, and the rest, the majority, are in concept phase, highlighting a clear gap between ambition and implementation.

A large portion of Africa's population lacks electricity access, yet we are focusing on energy-intensive hydrogen production. Why aren't we redirecting this energy to connect people without power?

Ms Maina: That is a valid concern, and it has led to advocacy around just energy transition, where even as we adopt green hydrogen, we do so in a fair and inclusive manner that leaves no one out. 

However, we must also be alive to the realities of energy access in Africa. Most of the green hydrogen projects are being developed with their own dedicated renewable energy infrastructure, often in remote areas with high potential but low grid use.  For instance, Namibia's Daures Green Hydrogen Village is located in one of the remotest constituencies in Namibia. So, green hydrogen is not taking away from what would otherwise be supplied to homes but is instead improving capacity in underutilised regions.

The hydrogen produced is primarily for export, and the foreign exchange earned can be reinvested into African countries to expand electrification and provide more people with access to electricity.

What opportunities does Africa have in hydrogen production given our abundant renewable resources?

Ms Maina: Africa has several significant opportunities. Firstly, our exceptional solar and wind potential positions us to be a global leader in green hydrogen production at competitive costs, redefining our role in the global energy transition. Reports suggest Africa could take a leading role in global green hydrogen trade by 2050.

Secondly, we can play a significant role in achieving the Paris Climate Agreement 2050 decarbonisation goals, for which green hydrogen is seen as a suitable alternative to fossil fuels, especially in hard-to-abate industries like steelmaking, shipping, and heavy transport. Europe is heavily investing in African green hydrogen, as they lack our resources, while we lack capital. This creates a symbiotic relationship where their capital enables us to produce green hydrogen for their decarbonisation efforts.

Thirdly, we are moving beyond just producing green hydrogen to producing its derivatives, such as green ammonia and green fertiliser. This strengthens local industries and reduces dependence on volatile global supply chains, protecting us from external shocks as witnessed during the geopolitical tensions in Eastern Europe and the Middle East.

Apart from funding, what are the biggest bottlenecks in developing hydrogen projects in Africa, and how can these issues be addressed?

Ms Maina: Beyond funding, a key challenge is the lack of comprehensive policies and regulations for green hydrogen. Most of the frontrunners in green hydrogen in Africa do not have a robust regulatory environment for green hydrogen development. According to the Hydrogen Rising policy tracker, about 8 countries have hydrogen strategies but lack supporting regulations to translate them into action. As a capital-intensive technology, no investor is going to put their money in a business environment without clear guidelines and policies guiding it.

Another challenge is the gap in technical knowledge and skills in clean hydrogen. As a new technology, it draws expertise from other technical fields like engineering. As such, many projects are relying on foreign experts due to a lack of local skills. However, progress is being made. Namibia is undertaking internal training and offering scholarships, while Kenya is using Technical and Vocational Education and Training (TVET) institutions to train youth and upskill existing technical experts.

Addressing funding, strengthening the regulatory environment, and bridging the skills gap are essential. Fixing finances would unlock new projects. A robust regulatory framework would attract more long term investments. Developing local talent ensures that green hydrogen gets to benefit local communities, a key step towards a just energy transition.

Which African countries are best positioned to become major green hydrogen producers, and what makes them stand out?

Ms Maina: Egypt and Morocco in North Africa are well-positioned due to their significant solar and wind potential and strategic proximity to European markets. Morocco stands out for its investor-friendly approach through the "Morocco Offer," which includes access to 3 million hectares of land for green hydrogen projects, among other incentives that help create a favourable business environment.

In Southern Africa, Namibia stands out for its proactive and coordinated green hydrogen strategy, moving beyond announcements to pilot projects. Examples include the Daures Green Hydrogen Village, aiming for Africa’s first net-zero vegetables, and the HyIron Oshivela Project, Africa’s first green iron plant, which has already produced its first green hydrogen and will now use it to produce green iron. 

South Africa also stands because of its focus on diversified green hydrogen applications, including synthetic fuels, industrial processes and mobility solutions. It is also actively investing in the sector and we recently saw it operationalise the first blended finance vehicle, SA-H2 Fund, which will fund its largest green ammonia project, Hive Hydrogen Green Ammonia Project.

How might global demand for hydrogen evolve, and what implications does this have for Africa's future energy landscape? Do you see hydrogen technology declining or growing?

Ms Maina: I believe we will see a more active green hydrogen sector in Africa moving forward. As the world accelerates decarbonisation efforts, the continent is expected to play a significant role thanks to its abundant renewable energy potential. Green hydrogen is increasingly seen as a viable alternative to fossil fuels in hard-to-electrify sectors and as countries scale up their climate commitments, demand for green hydrogen is likely to rise.

This presents a unique opportunity for Africa. With its resources, strategic proximity to key export markets, and growing political momentum, the continent is well-positioned to become a competitive supplier of green hydrogen and its derivatives. 

What is your overall opinion on the role that renewables will play, given their declining cost and falling hydrogen costs?

Ms Maina: Renewables are fundamental to green hydrogen, and their declining cost in Africa is a game-changer for production. As renewable energy becomes more affordable and scalable, it empowers African countries to move beyond fossil fuels and build clean, resilient energy economies. Green hydrogen expands this opportunity by enabling deep decarbonisation and industrialisation beyond just electricity access. 

Crucially, green hydrogen projects are often developed in remote or underutilised areas. By situating these projects there, we add generation capacity to regions where the national grid doesn't reach and create new economic zones. This makes hydrogen not just a competitor to electricity access but also a complementary driver for development, bringing new jobs, business environments, and improved energy sovereignty.