Unlocking Africa's Hydrogen Potential: Key Project Final Investment Decision (FID)

Zawya

25-02-2025

Africa, the world's second-largest and second-most-populous continent, is positioning itself as a frontrunner in the global green energy revolution, with hydrogen emerging as a critical commodity of strategic and national importance across the continent.
Whilst there are many hydrogen projects of myriad scale and end use being proposed across the continent, including Angola, Egypt, Kenya, Mauritania, Morocco, and South Africa, Namibia is putting ambition into action by having already reached several key milestones towards FID, on up to five projects.
Growing Energy Demand in Africa
Africa is home to some of the fastest-growing economies in the world, but the continent is also grappling with one of the most significant energy access challenges. Over 600 million people across the continent still lack access to reliable electricity, and nearly 900 million people rely on traditional biomass for cooking, contributing to both energy poverty and significant health risks. However, Africa's energy deficit also represents a unique opportunity to leapfrog outdated, polluting technologies and implement innovative, sustainable energy solutions.
Hydrogen, particularly green hydrogen produced from renewable energy sources, has emerged as a vital part of Africa's energy future. Africa boasts abundant renewable resources, including vast solar and wind potential, which can be harnessed to produce green hydrogen on a large scale. This clean, versatile energy carrier could not only meet domestic demand for electricity but also position Africa as a global supplier of green hydrogen to international markets.
How Namibia is Shaping Global Energy: Final Investment Decisions (FID) Charting Africa's Hydrogen Industry Future
Namibia is leading Africa's transition to a low-carbon economy. Final Investment Decisions (FIDs) on green hydrogen projects are set for 2025. At the forefront of innovation, Namibia is highlighting its vast potential, from synthetic fuel production to equipment manufacturing, driving economic growth and cementing its role as a key player in the global energy transition. As a centrepiece of the Global African Hydrogen Summit, taking place in Windhoek, 9 – 11 September 2025, Namibia's emerging green industries sector represents a powerful investment opportunity for companies worldwide. The country is committed to innovative research and development, sustainable socio-economic advancement, economic diversification, environmental and biodiversity protection and combatting climate change.
The Global African Hydrogen Summit recently published exclusive insights in partnership with the Namibia Green Hydrogen Programme that showcase a FID Timeline as well as Namibia's Green Hydrogen Overview & Report. The insights chart how the Namibian projects are well underway towards their path to FID and project implementation. These projects include the HyIron Oshivela Project, producing green iron for export; Cleanergy Solution developing green ammonia for heavy transport and export; HDF Energy producing green hydrogen and green baseload electricity for the National Grid; Zhero/Envision to produce green hydrogen and green ammonia for export and the Hyphen Hydrogen Energy project which aims to produce green hydrogen and ammonia for export and excess electricity into the grid as well as localisation and export via a pipeline to South Africa.
Hydrogen as a Job Creator and Economic Driver
Beyond its environmental and energy access benefits, hydrogen presents significant opportunities for job creation and economic growth across Africa. The hydrogen value chain, from renewable energy production to hydrogen storage, transport, and usage, offers numerous avenues for industrial development. According to the International Renewable Energy Agency (IRENA), the hydrogen economy could create millions of jobs globally, and Africa stands to benefit enormously.
For example, the hydrogen economy in Namibia has already started developing skills and building a workforce to support hydrogen production and infrastructure development. The partnership focuses on equipping workers with the technical skills needed for green hydrogen technologies, which will be essential for Africa's energy future.
Moreover, the export potential of African-produced green hydrogen to energy-hungry regions like Europe and Asia could generate significant revenue streams, which could be reinvested into domestic infrastructure and social development projects.
Challenges and the Pathway Forward
Despite the promising opportunities, the hydrogen sector in Africa faces several challenges. First and foremost is the need for infrastructure development. While Africa has abundant renewable energy resources, scaling up hydrogen production and creating the necessary infrastructure for storage, transport, and distribution will require significant investment. Additionally, access to finance remains a barrier for many African countries and projects looking to enter the hydrogen market.
Another challenge is regulatory frameworks. Many African countries are still in the early stages of developing hydrogen-specific policies and regulations, which can create uncertainty for investors. However, there is growing recognition among African governments that creating a conducive environment for hydrogen development will be crucial to the continent's energy transition.
Conclusion: A Bright Future for Africa's Hydrogen Sector
Africa's hydrogen sector is at a tipping point. With its abundant renewable energy resources, young workforce, and increasing commitment to sustainability, the continent is well-positioned to lead the global green energy revolution. As governments, businesses, and international partners continue to invest in the hydrogen economy, the future looks bright for Africa's energy sector.
Following the huge success of the inaugural edition of the Global African Hydrogen Summit dmg events are delighted to announce that a sequel edition will take place from 9 – 11 September 2025 in Windhoek, Namibia.
The Global African Hydrogen Summit is held under the official patronage and hosted by the Government of Namibia, endorsed by the Ministry of Mines & Energy of Namibia, held in partnership with the Namibia Investment Promotion and Development Board (NIPDB), and supported by the Namibia Green Hydrogen Council and the Namibia Green Hydrogen Programme (NGH2P).
Themed Ambition in Action: Fuelling Africa's Green Industrial Revolution, the dynamic three- day -summit will once again convene heads of state, ministers, business leaders, project developers, investors, technologists and end users from across Africa and around the globe to drive partnerships for, and critical investments and financing into, bankable green energy projects of strategic and national importance across Africa.
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