African Development Bank Invests $20 Million in Green Hydrogen Projects Across Africa

African Development Bank's Initiative for Green Hydrogen Development

The African Development Bank (AfDB) has announced a significant investment of USD 20 million in innovative green hydrogen projects located in Egypt, Morocco, Namibia, and South Africa. This funding is part of the Africa Green Hydrogen Programme, which aims to bolster the continent's capabilities in renewable energy and position it as a key player in the burgeoning green hydrogen market. The financing initiative follows a successful call for proposals that took place between April 10 and May 11, 2026, showcasing the AfDB's commitment to sustainable development and climate resilience.

This funding, pending approval from the AfDB's Board of Directors, is set to be disbursed through the Sustainable Energy Fund for Africa (SEFA). The primary objective of these grants is to prepare high-potential projects for further investment, ensuring that they are robust and ready for implementation. The selected projects involve the production of sustainable marine and aviation fuels in Egypt, Morocco, and Namibia, alongside a low-carbon iron project in South Africa. Notably, the project 'Ra' in Egypt will receive $3.55 million, while Morocco's Guelmim Green Hydrogen Valley has secured $5.28 million. The Hyphen project in Namibia is allocated USD 5.93 million, and South Africa's Saldanha Hydrogen DRI project has been awarded USD 5.24 million.

These four initiatives represent a combined investment of approximately USD 23 billion, along with a projected 20GW of solar and wind energy generation capacity, 7 GW of electrolyser capacity, and 2950 MWh of battery energy storage capacity. The Africa Green Hydrogen Programme's overarching goal is to stimulate private sector involvement in hydrogen infrastructure by enhancing project bankability and attracting foreign direct investment. By leveraging green hydrogen and its derivatives, the programme aims to facilitate renewable energy development while minimizing reliance on fossil fuels and reducing carbon emissions.

Impact on Local Economies and Future Prospects

The potential socio-economic benefits of these projects are substantial, as they promise to improve access to desalinated drinking water and electricity by utilizing surplus energy generation. Furthermore, these initiatives are designed to foster industrial growth, generate export revenue, and facilitate the transfer of technology and skills, contributing to job creation across the region. Daniel Schroth, the Bank Group Director for Renewable and Energy Efficiency, emphasized Africa's unique position to capitalize on its abundant renewable energy resources, which can transform the continent into a competitive player in the global green hydrogen market.

Various stakeholders involved in the projects have expressed their enthusiasm. For instance, Ioannis Papassavvas, CEO of DAI Infrastruktur, highlighted the acknowledgment of Project Ra's potential and thanked the African Development Bank for its support. Similarly, Aldrich Louis, Senior Manager at ArcelorMittal South Africa, noted the strategic importance of the Saldanha Hydrogen DRI Project in revitalizing industrial assets and contributing to a low-carbon economy. Meanwhile, Marco Raffinetti, CEO of Hyphen Hydrogen Energy, celebrated the recognition of their project's quality, underscoring their ongoing collaboration with the AfDB.

In total, the Africa Green Hydrogen Programme received 81 project proposals from 18 African nations, indicating a strong interest in sustainable energy initiatives. The AfDB's financial backing will play a crucial role in advancing these green hydrogen projects, which are poised to drive significant progress in Africa's energy landscape.

As reported by afdb.org.