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?
British energy major BP has signed a joint development agreement with a consortium of Abu Dhabi Future Energy Company (Masdar) and the local Hassan Allam Utilities and Infinity Power to explore the potential for a large, multi-phase green hydrogen (GH2) project in Egypt.
After launching a national green hydrogen (GH2) strategy in late 2023, Tunisia has signed memoranda of understanding with international partners for two large GH2 projects aimed squarely at the European export market, writes Dominic Dudley.
