North Africa, green hydrogen prospects and projects map, cropepd

Green hydrogen revolution could make or break North Africa


Issue 513 - 30 Sep 2024 - By John Hamilton | 5 minute read

The scale of the green hydrogen (GH2) opportunity emerging in North Africa is potentially transformative for the region. However, to date just one tiny pilot project is up and running and there is still no firm evidence that giga-scale projects can be made bankable. If the prospect is a mirage, it is one that has taken in a swathe of respected global investors. With an ever-increasing amount riding on the outcome, failure will be a disaster, but success could revolutionise the fortunes of the region, writes John Hamilton.

Green hydrogen - yet another scramble for Africa?

Green hydrogen, istock

Green hydrogen (GH2) prospects in Africa are developing at breakneck speed. But the biggest questions remain unanswered.  

  • Yes, Africa has the resources but can these highly capital intensive projects be made bankable while lenders demand heavy risk premiums on African projects?
  • Can commercial offtake agreements be put in place without penalising more expensive first movers?  
  • And which projects will prevail?  Competition is growing for sites with the best wind, solar irradiation, water supply, logistics and access to market.  
  • If this is yet another scramble for Africa, will it bring sustainable development, unlike the 19th and 20th century quests for physical resources?

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