African energy Chamber

Africa is rapidly emerging as a key player in the global hydrogen economy, with abundant renewable energy resources positioning the continent to produce low-carbon hydrogen at scale. By 2035, the continent could produce up to 50 million tons of low-carbon hydrogen per annum, driven by rising demand across transport, industrial, agriculture and export markets. According to the African Energy Chamber’s (AEC) State of African Energy 2026 Outlook, unlocking this potential will require targeted policy and greater investment in large-scale projects, the outcome of which will support domestic consumption and global exports.

Projects and Export Potential

Africa’s abundant renewable resources and strategic location position it as a competitive producer and future exporter of low-carbon hydrogen and derivatives, offering investors long-term opportunities in green industrialization, job creation and sustainable fertilizer production. While the continent continues to face challenges associated with financing and export infrastructure, global partnerships are supporting the development of resilient supply chains across the continent. As such, major projects are already underway across the continent, backed by GW-scale renewable energy and offering newfound implications for global markets.

In North Africa, Egypt is deploying a $40 billion green hydrogen strategy, led by projects such as the SK Ecoplant and China State Construction Engineering Corporation’s SCZone facility. Coming online in 2029, the project targets 50,000 ton per annum (tpa) of green hydrogen and 250,000 tpa of green ammonia. The SoutH2 Corridor is gaining momentum, targeting four mtpa by 2030. Backed by the EU, the project links Algeria and Tunisia to Italy. Namibia and South Africa are leading Southern Africa’s green hydrogen agenda. South Africa’s Hydrogen Valley and Green Hydrogen National Program are underway while Namibia is developing a $10 billion project in the Tsau // Khaeb National Park, targeting two mtpa by 2030. In West Africa, Mauritania is spearheading several GW-scale projects, including the $40 billion AMAN project – featuring 30 GW of renewable capacity to produce 1.7 mtpa – and the Project Nour – featuring 10 GW of electrolysis buildout.

Domestic Consumption

Despite the significant potential for low-carbon hydrogen production in Africa, domestic consumption remains low, largely due to costs and inadequate infrastructure. However, growing demand across the maritime and mining sectors – in tandem with policy and fiscal support – could turn this trend around. The AEC Outlook highlights how the decarbonization of heavy-duty vehicles (HDV) could impact Africa’s hydrogen market, but only if the industry is backed by strong regulations. Globally, demand for HDVs is expected to rise 12-fold during the 2025-2023 period, with hydrogen forecasted to form 25% of the total HDV fuel mix. Regulation is a key driver of this, highlighting a rising opportunity for Africa to restructure its energy strategies to incorporate targeted hydrogen policies.

The maritime industry is also expected to promote the uptake of hydrogen in Africa. With the International Maritime Organization imposing new regulations in April 2025, targeting maritime carbon emissions as part of a broader net-zero framework, African ports and maritime infrastructure are facing mounting pressures to upgrade and develop new bunkering infrastructure to manage new fuels – specifically, hydrogen. This would not only support global maritime trade but support Africa’s shift to hydrogen, underscoring a unique investment opportunity for global partners. Africa’s industrial sectors could also impact hydrogen consumption, with the industry pursuing solutions to advance decarbonization. However, sufficient carbon pricing will be needed to displace fossil-based hydrogen from industrial usage.

Meanwhile, with over 85% of the world’s fossil-based ammonia currently used in agriculture, Africa’s hydrogen sector could emerge as a catalyst for food security across the continent. Africa’s rapidly growing population and challenging arability has highlighted the need for strengthened fertilizer production chains, with hydrogen emerging as a viable alternative to imports. However, realizing this potential requires significant levels of investment.

“Africa has the renewable potential, the talent and the drive to lead the world in low-carbon hydrogen – but realizing that vision depends on bold investment and sound policy. When investors put their capital into African hydrogen projects, they’re not only backing clean energy; they’re backing industrialization, job creation and long-term prosperity for an entire continent,” states NJ Ayuk, Executive Chairman, AEC.

The upcoming African Energy Week conference – taking place October 12-16, 2026 in Cape Town – offers a unique platform for global investors and African governments to address challenges and opportunities with low-carbon hydrogen adoption in Africa. By providing a platform for dealmaking and dialogue, the event connects global capital with African projects, advancing the continent’s hydrogen sector towards 50 mtpa by 2035.