North Africa already has the requisite ample pure assets and creating infrastructure to assist a large enlargement in inexperienced hydrogen manufacturing.
The area boasts among the highest photo voltaic irradiation ranges globally, making it a great location for solar-powered hydrogen manufacturing.
International locations like Morocco and Egypt have already initiated tasks just like the Noor Ouarzazate Photo voltaic Thermal Advanced and the Benban Photo voltaic Advanced, respectively, which may function the spine for the business.
Whereas a lot of our consideration on the African Vitality Chamber (AEC) concentrates on efforts to industrialize the sub-Saharan areas, as coated in our lately launched 2025 Outlook Report, The State of African Vitality, the extra developed North African nations have seen current progress within the renewables subject, in inexperienced hydrogen particularly, that deserves our recognition.
Many are seemingly unfamiliar with the expertise behind the manufacturing of this gas supply, and the topic requires at the least a quick rationalization.
Hydrogen has many makes use of throughout diverse industries, from petroleum refining and meals processing to fertilizer and metal manufacturing. Whereas the aerospace business has used hydrogen as a rocket gas because the daybreak of the area age, there may be loads of room for the expansion of hydrogen-powered automobiles, or gas cell electrical autos (FCEVs), within the automotive world.
Although its implementation in electrical energy technology is minimal at current, hydrogen might even see extra widespread use as a supplementary or different gas supply sooner or later at standalone services and energy vegetation at the moment operating on pure gasoline.
Hydrogen manufacturing primarily makes use of electrolysis, a course of by which an electrical present passes by means of water to separate hydrogen from oxygen. At the moment, about 95% of the electrical energy for international hydrogen manufacturing comes from pure gasoline and coal-fired energy vegetation.
In contrast, inexperienced hydrogen manufacturing makes use of electrical energy from renewable sources resembling photo voltaic and wind as a substitute. If the vast majority of hydrogen manufacturing services switched to renewable power, the Worldwide Vitality Company (IEA) estimates this might cut back CO2 emissions by roughly 830 million tonnes yearly.
Because the world struggles with the pressing must transition from fossil fuels to extra sustainable power sources, inexperienced hydrogen provides an avenue the place manufacturing can proceed with the identical capability however with out dangerous by-products, significantly in areas wealthy in renewable power potential like North Africa.
This area, characterised by huge, constantly sun-drenched deserts and robust winds, may doubtlessly paved the way in creating a worldwide inexperienced hydrogen financial system. Nonetheless, this transition shouldn’t be with out its complexities and challenges.
The Promise in Inexperienced Hydrogen
As coated in our lately revealed 2025 Outlook Report, The State of African Vitality, North Africa provides a number of compelling benefits, marking it as a potential inexperienced hydrogen mega-producer.
North Africa already has the requisite ample pure assets and creating infrastructure to assist a large enlargement in inexperienced hydrogen manufacturing. The area boasts among the highest photo voltaic irradiation ranges globally, making it a great location for solar-powered hydrogen manufacturing.
International locations like Morocco and Egypt have already initiated tasks just like the Noor Ouarzazate Photo voltaic Thermal Advanced and the Benban Photo voltaic Advanced, respectively, which may function the spine for the business. Moreover, the wind potential alongside the coasts of Algeria and Mauritania gives one other renewable power supply for industrial-scale electrolysis.
For nationwide economies critically depending on oil and gasoline, inexperienced hydrogen provides a path to better diversification. The transition wouldn’t solely reduce the detrimental impacts of oil’s inherent value fluctuations but additionally foster new industries.
Inexperienced hydrogen manufacturing may result in growth in associated sectors resembling hydrogen gas cells, ammonia manufacturing for fertilizers, and even inexperienced metal (metal produced utilizing hydrogen as a lowering agent eliminating coal and CO2 emissions from the method) creating new jobs and stimulating financial development.
A ramp-up in inexperienced hydrogen manufacturing would even have extra than simply native advantages because the endeavor aligns with international local weather objectives as properly. By specializing in inexperienced hydrogen, North African nations may place themselves as leaders within the worldwide decarbonization effort whereas opening up new export markets.
The export of inexperienced hydrogen to Europe, which has set bold local weather targets, may develop into a profitable commerce, additional enhancing North Africa’s geopolitical stature within the power sector.
With the proper infrastructure in place, like the type proposed for the SoutH2 hall linking North Africa, Italy, Austria, and Germany, producers may transport inexperienced hydrogen through pipelines or as simply shippable derivatives like ammonia or liquid natural hydrogen carriers (LOHCs), which might be significantly interesting to European markets in search of to decarbonize.
The Challenges
Regardless of the numerous brilliant prospects, a sensible evaluation of the trail to a inexperienced hydrogen financial system in North Africa reveals it isn’t with out its fair proportion of challenges.
Hydrogen manufacturing by means of electrolysis requires important quantities of water, which is already scarce in lots of components of North Africa. This reality basically mandates options like seawater desalination or wastewater recycling, each of which add to the power and monetary burdens of any inexperienced hydrogen initiative.
The shortage of present infrastructure for hydrogen manufacturing, storage, and distribution can be a serious hurdle. North Africa will want new pipelines, storage services, and ports able to dealing with hydrogen and its derivatives, and the development related to these options would require substantial funding. Furthermore, whereas adapting present gasoline infrastructure to facilitate hydrogen transportation is a possible enterprise, it presents further technical and security challenges as a result of hydrogen’s unstable properties.
One other obstacle to inexperienced hydrogen’s enlargement is its total financial viability. At the moment, inexperienced hydrogen manufacturing prices stay larger than these of fossil fuels and even these of blue hydrogen (hydrogen produced utilizing pure gasoline with carbon seize). Reaching economies of scale and technological developments in electrolyzers may cut back prices, however till then, inexperienced hydrogen will battle to compete with out subsidies or carbon pricing mechanisms.
Nations engaged in inexperienced hydrogen manufacturing can even should create and clearly outline their related insurance policies and rules. This nascent stage of the expertise’s growth requires sturdy coverage frameworks if producers are to draw funding, guarantee security, and combine hydrogen into their present power programs.
North African nations must develop clear methods, not just for hydrogen manufacturing but additionally for the way it matches into their broader power insurance policies. This consists of regulatory assist for renewable power tasks, hydrogen certification, and cross-border commerce agreements.
The capital-intensive nature of inexperienced hydrogen tasks means funding is one other crucial barrier. Whereas there are indicators of curiosity from worldwide traders, the chance notion in some North African markets may deter the required inflow of capital. It could be vital to hunt worldwide cooperation on revolutionary financing fashions resembling inexperienced bonds that are issued by public or non-public establishments for the aim of funding tasks meant to mitigate local weather change.
Lastly, ability growth and expertise switch current different hurdles. Constructing a inexperienced hydrogen business requires a talented workforce that counts engineers, technicians, laborers, and policymakers as members. Contemplating that nations who wish to take part within the inexperienced hydrogen financial system must develop native experience, there’s a built-in want for funding in training and coaching.
And whereas expertise switch from nations main in hydrogen expertise could be useful, it comes with its personal set of potential limitations relating to mental property and capability enlargement.
Learn additionally: African seeks a share of $130 billion inexperienced hydrogen market
Transferring Ahead
Regardless of these challenges, leveraging North Africa’s inexperienced hydrogen potential is a worthy pursuit and would require a multi-faceted method:
Regional collaboration. Initiatives just like the African Inexperienced Hydrogen Alliance are steps in the proper course, selling shared information, infrastructure, and funding.
Technological innovation. Conducting analysis into extra environment friendly electrolyzers, higher hydrogen storage options, and the usage of non-fresh water sources for electrolysis may mitigate among the present limitations.
Worldwide partnerships. The EU’s purpose of importing 10 million tonnes of inexperienced hydrogen by 2030, as stipulated by the REPowerEU Plan, presents a direct market alternative. Collaborations throughout Europe for diversified funding, expertise sharing, and market entry can speed up growth.
Coverage management. Governments should lead with insurance policies and choices that not solely incentivize inexperienced hydrogen but additionally guarantee sustainability. These would come with clear and detailed roadmaps to success, unwavering assist for preliminary tasks, and incentives just like the simplified administrative procedures and tax breaks l the Egyptian authorities established when it granted 42,000 sq. kilometers of land to the New and Renewable Vitality Authority (NREA) for inexperienced hydrogen manufacturing.
Environmental issues. It’s essential to make sure that inexperienced hydrogen tasks don’t result in unintended environmental degradation, particularly regarding water use. Operators should combine and cling to environmentally pleasant practices from the outset.
The event of inexperienced hydrogen in North Africa holds transformative potential, providing a route to wash power manufacturing that might redefine the area’s financial panorama.
Nonetheless, to appreciate this potential, North Africa must overcome important hurdles by means of strategic planning, worldwide cooperation, and a dedication to sustainability. If North Africa navigates these challenges with foresight and innovation, the area may meet its personal power wants through greener alternate options whereas taking part in a pivotal position within the international power transition and setting a precedent for different areas to comply with.
Op-Ed by NJ Ayuk, Govt Chairman, African Vitality Chamber.
