AfDB Backs $23 Billion Green Hydrogen Pipeline Across Africa

The grants, sourced from the Sustainable Energy Fund for Africa (SEFA), target projects integrating wind and solar energy into hydrogen-based marine fuels, aviation fuels, and low-carbon iron production. The selection follows a competitive call for proposals that drew 81 submissions from 18 nations. Selected initiatives include Egypt’s Project Ra, receiving $3.55 million; Morocco’s Guelmim Green Hydrogen Valley, allocated $5.28 million; Namibia’s Hyphen project, slated for $5.93 million; and South Africa’s Saldanha Hydrogen DRI project, granted $5.24 million.

These developments represent a massive industrial shift, encompassing 20 GW of combined renewable generation capacity and 7 GW of electrolyzers. Kevin Kariuki, the Bank’s Vice President for Power and Climate, announced the selections at the 2026 Africa Green Hydrogen Summit in Cape Town. By funding the pre-investment phase, the Bank intends to bridge the gap between initial concept and financial close. For stakeholders like ArcelorMittal South Africa and Enertrag SE, the support provides a path to decarbonize heavy industry by leveraging the continent's abundant renewable resources, ultimately positioning African hubs to compete in the global energy market.