Egypt green hydrogen map

Regional leader Egypt needs green hydrogen to work


Issue 513 - 29 Sep 2024 - By John Hamilton | 5 minute read

Egypt has the most prospective portfolio of green hydrogen development prospects anywhere in Africa. The multi-billion-dollar projects for which major global investors have signed framework agreements could be a lifeline for the heavily indebted country but will take years to come to fruition. However, two much smaller projects developed by Norway’s Scatec have secured firm offtake commitments, offering another way forward.

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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