The African Development Bank Group (AfDB) will provide $20 million in reimbursable grants to four green hydrogen and derivatives projects in Egypt, Morocco, Namibia and South Africa, supporting developments with an estimated combined investment value of $23 billion.
The funding will be provided through the Sustainable Energy Fund for Africa (SEFA) under the Africa Green Hydrogen Programme, subject to approval by the Bank’s Board. It is intended to finance project preparation and move the developments closer to investment readiness.
The four projects were selected from 81 proposals covering 18 African countries submitted under a call for proposals launched between April 10 and May 11.
Egypt’s Project Ra, sponsored by DAI Infrastruktur GmbH, will receive $3.55 million, while Morocco’s Guelmim Green Hydrogen Valley, sponsored by Nareva Holding, will receive $5.28 million.
Namibia’s Hyphen project, sponsored by Hyphen Hydrogen Energy, was allocated $5.93 million, while South Africa’s Saldanha Hydrogen Direct Reduced Iron (DRI) project, involving Enertrag and ArcelorMittal South Africa, will receive $5.24 million.
Together, the projects are expected to represent 20 gigawatts of solar and wind generation capacity, 7 GW of electrolyser capacity and 2,950 megawatt-hours of battery storage.
The projects will focus on sustainable marine and aviation fuels in Egypt, Morocco and Namibia, while the South African development will target low-carbon iron production.
“Africa’s exceptional renewable energy resources give the continent a unique opportunity to become a competitive player in the emerging global green hydrogen and derivatives market,” said Daniel Schroth, AfDB Director for Renewable and Energy Efficiency.
“Through the SEFA-funded AGHP, the African Development Bank is helping to move high-potential projects closer to investment readiness,” he said.
The programme is designed to attract private-sector investment by improving project bankability and reducing early-stage development risks. The AfDB said the projects could also support industrial development, export revenues, technology and skills transfer, job creation and access to electricity and desalinated water.
For Egypt, Project Ra is being developed to produce green ammonia for European and international markets from the Suez Canal corridor.
“Being selected under the Africa Green Hydrogen Programme is a strong recognition of the work our team and partners have put into Project Ra over the past several years,” said Ioannis Papassavvas, CEO of DAI Infrastruktur.
In South Africa, the Saldanha project aims to combine renewable energy and green hydrogen with existing industrial infrastructure to produce low-carbon iron.
“The Saldanha Hydrogen DRI Project represents a unique opportunity to repurpose and revitalise a strategic industrial asset while positioning South Africa to participate meaningfully in the emerging low-carbon iron economy,” said Aldrich Louis, Senior Manager at ArcelorMittal South Africa.
Namibia’s Hyphen project was also selected for support, with CEO Marco Raffinetti describing the award as recognition of the project’s maturity.
The AfDB’s financing comes as African countries seek to convert abundant renewable energy resources into new industrial and export opportunities.
Green hydrogen can be used in sectors including shipping, aviation, fertilizers and steel, potentially allowing countries to capture more value from renewable power and mineral resources.
The relatively small grant package is intended to unlock much larger pools of commercial capital.
The four selected projects’ $23 billion estimated investment pipeline highlights the scale of capital required to develop Africa’s emerging hydrogen industry.
The AfDB said the Africa Green Hydrogen Programme aims to strengthen the continent’s position in the global green hydrogen and derivatives market while supporting the transition to lower-carbon industrial production.
