Chile and South Africa could be green hydrogen exporters – but setting up industries with debt is dangerous
Green hydrogen, produced by splitting water using renewable energy, is seen as a clean alternative to fossil fuels, especially in heavy industries like steel, fertilizer, and cement. Global investment in green hydrogen is massive, with over 1,400 projects announced and $320 billion committed.
European countries aim to import green hydrogen from sun- and wind-rich nations like Chile and South Africa, with the EU targeting 10 million tonnes of imports annually by the 2030s. Chile plans to use green hydrogen to decarbonize copper mining and become an exporter of green hydrogen derivatives. South Africa sees it as key to reducing its reliance on coal and greening its heavy industry.
However, both countries lack the financial resources to develop large-scale green hydrogen industries. Relying on loans could increase their debt unsustainably. Economists argue that current de-risking strategies, such as tax incentives and low-interest loans, are risky and may not address deeper economic and infrastructure challenges.
Instead, they recommend creating a stable investment environment that includes local businesses and workers, and call on wealthier nations to take on more of the financial burden. This could involve long-term purchase agreements to guarantee demand and price stability for producers.
Ultimately, the success of green hydrogen development in countries like Chile and South Africa will depend on fair international cooperation and sustainable, inclusive growth strategies… (you can find the rest of the news at the address below).
Afrika-Verein, INP Egypt, and Master Point to co-organize 3rd Hydrogen-Africa Conference in Cairo
Egypt to Host Major Green Hydrogen Conference in October 2025
INP Egypt and Germany’s Afrika-Verein have partnered with Master Point and the St. Regis Cairo Hotel to co-host the 3rd International Green Hydrogen Exhibition and Conference, titled “Hydrogen in Africa – Egypt.” The event, scheduled for October 28–29 in Cairo, marks the first time the conference will be held outside Germany. This high-profile event brings together government officials, private sector leaders, and researchers from Africa and Europe to discuss green hydrogen technologies, strategies, and investments, aiming to strengthen cross-continental cooperation in clean energy. INP Egypt Chairperson Alaa Kamal emphasized the conference’s role in unlocking Africa’s hydrogen potential and establishing African countries as key suppliers to Europe. Egypt was selected as the host due to its governmental support for clean energy, attractive investment climate, and strong EU ties.
Master Point Chairperson Mohamed Sweid highlighted Egypt’s goal to become a regional export hub for green energy. CEO Ramy Galal added that the event will meet international standards through strategic partnerships and a skilled team. Afrika-Verein, representing over 500 companies, has promoted Germany-Africa economic relations for over 90 years and is a key partner in organizing the event. The Cairo edition is expected to enhance Egypt’s leadership in the green energy transition and deepen connections between African producers and European markets… (you can find the rest of the news at the address below).
South Africa Approves Renewable Energy Masterplan to Boost Clean
The South African Cabinet has approved the South African Renewable Energy Masterplan (SAREM) to boost energy security and industrial growth. The plan outlines strategies to expand renewable energy and battery storage as electricity demand is set to double by 2040. Key goals include improving infrastructure, building local clean energy supply chains, promoting skills development, and integrating green hydrogen. It supports the 2023 Integrated Resource Plan, targeting 29.5 GW of new capacity by 2030, including wind and solar. SAREM is expected to attract investment and strengthen South Africa’s role as a clean energy leader in Africa. Its impact will be a major focus at African Energy Week 2025, highlighting opportunities for public-private collaboration and energy transformation… (you can find the rest of the news at the address below).
Green Hydrogen and Energy Corridors between the Global North and South
Green hydrogen, produced using renewable energy, is becoming a key solution in the global push for decarbonization. The EU’s REPowerEU plan aims to produce and import 10 million tons of green hydrogen each by 2030, with North Africa—notably Algeria, Morocco, Egypt, and Tunisia—seen as a key supplier due to its strong solar and wind potential. Projects like the Southern Hydrogen Corridor, a pipeline linking North Africa to Italy, Austria, and Germany, aim to boost EU energy security while supporting North African economic growth. These green hydrogen corridors promote cross-regional investment, infrastructure development, and climate cooperation. The initiative is not only economically strategic but also vital for meeting international climate targets, including the EU Green Deal and Paris Agreement… (you can find the rest of the news at the address below).
Green hydrogen from Africa much more costly than previously assumed
A study led by the Technical University of Munich (TUM) and published in Nature Energy shows that producing green hydrogen in Africa for export to Europe could be far more costly than previously assumed, primarily due to high financing costs and investment risks. The research analyzed over 10,000 potential sites in 31 African countries and found that only about 2% could be economically competitive by 2030 — and only with European price and offtake guarantees. Green hydrogen is considered key to Europe’s decarbonization strategy, particularly for heavy industries like steel. Due to Europe’s limited capacity for domestic production, attention has turned to Africa, where solar and wind resources are abundant. However, the study found that previous models underestimated the cost of capital in African countries, often assuming uniform rates of 4–8%, while actual rates could range from 8% to 27%, depending on local conditions.
Without policy support, green hydrogen production costs in Africa would be around €5/kg, making exports to Europe uncompetitive. With government guarantees and lower interest rates, prices could drop to €3/kg, but even then, competition remains strong — recent European auctions have seen bids below that level. The study highlights that only around 200 sites — mainly in Algeria, Kenya, Mauritania, Morocco, Namibia, and Sudan — show potential for competitive production, and many are in politically unstable areas, which may further reduce viable locations.
Researchers stress that European governments must offer long-term purchase agreements and financial risk guarantees (e.g., through the World Bank) to make green hydrogen exports from Africa viable. Without these, the current excitement could lead to unfeasible projects that offer little benefit to local communities… (you can find the rest of the news at the address below).
https://techxplore.com/news/2025-06-green-hydrogen-africa-previously-assumed.html
Germany Plans €4 Billion for Green Energy Projects in Africa
Germany has pledged €4 billion by 2030 for green energy projects in Africa, supporting hydrogen and gas partnerships under the EU’s Global Gateway initiative. In South Africa, Germany committed R5.2 billion to support the coal-to-renewables transition, while the EU added €4.7 billion for green energy and vaccine production.
Joint efforts with the African Development Bank aim to improve energy access and youth entrepreneurship, including the Mission 300 initiative to electrify 300 million Africans by 2030. German businesses are showing growing confidence in South Africa, with 64% expecting revenue growth and 44% planning investments in the next three years. Germany is also deeply involved in green hydrogen, including Namibia’s $10 billion Hyphen project, and supports gas and blue hydrogen cooperation where needed.
With €150 billion mobilized under Global Gateway, Germany views Africa’s energy resources as critical for both regional development and Europe’s energy transition. These themes will be central at African Energy Week 2025, where Germany is expected to play a leading role in advancing sustainable energy partnerships… (you can find the rest of the news at the address below).
German, African NGOs demand more equitable, climate-friendly energy partnership
Ahead of the EU-AU foreign ministers’ meeting on 21 May, Germanwatch is calling for stronger support for Africa’s energy transition, urging that the continent not remain merely a raw material supplier for Europe’s green shift. The group advocates for regional value creation, technology transfer, and fairer participation in global supply chains to ensure development aligned with climate and human rights goals.
Civil society voices emphasized the need to prioritize access to clean energy for all, warning against reinforcing fossil fuel dependence. Critics, including Power Shift Africa, highlighted the contradiction between EU climate goals and continued support for LNG projects in Africa, urging a halt to fossil investments in favor of locally anchored renewables.
Germany and the EU have played central roles in international Just Energy Transition Partnerships, including with South Africa, and pledged €4 billion by 2030 for sustainable energy in Africa. However, their pursuit of African LNG to replace Russian gas post-Ukraine war raises concerns about undermining a just and climate-aligned transition… (you can find the rest of the news at the address below).
Milestone: HyIron Oshivela Produces First Green Hydrogen in Southern Africa Using Chinese Electrolysers
HyIron’s Oshivela plant in Namibia has successfully produced southern Africa’s first green hydrogen using a 12MW Chinese-made electrolyser. This milestone marks a significant step toward the region’s green industrialization goals.
The Oshivela facility operates exclusively on renewable solar energy, powered by a 25MW solar farm and 13.4MW of battery storage integrated into a smart microgrid. Initially, the plant will produce green hydrogen to manufacture Direct Reduced Iron (DRI) at a rate of five tonnes per hour, targeting an annual output of about 15,000 tonnes. The project is supported by the Namibian government, over 60 local SMEs, and funding from Germany’s Federal Ministry for Economic Affairs and Climate Action. Construction began in April 2024 and was completed in less than a year.
HyIron plans to gradually increase the electrolyser’s capacity, aiming to establish itself as a leader in zero-emission iron production. The company has already secured an offtake agreement with German metals processor Benteler for 200,000 tonnes of hydrogen-reduced iron annually, highlighting international confidence in Namibia’s growing green industrial sector. This project underscores Namibia’s potential to contribute significantly to the global green energy transition… (you can find the rest of the news at the address below).
Egypt, France agree to establish plant for green hydrogen production
Egypt and France today signed a cooperation agreement to establish a plant for the production of green hydrogen.
Under the deal, the two countries will develop, finance, construct and operate a comprehensive facility near Ras Shokair on the western shore of the Gulf of Suez in eastern Egypt for the production of green hydrogen and its derivatives, including green ammonia, the Egyptian Trade Ministry said in a statement. The deal was signed between the Red Sea Ports Authority and the New and Renewable Energy Authority in partnership with the Green Fuel Alliance, which consists of the French company EDF Renewables and the Egyptian-Emirati company Zero Waste.
The three phases of the project will cost €7 billion ($7.68 billions) with a total production of one million tonnes annually. The cooperation agreement was inked on the sidelines of French President Emmanuel Macron’s visit to Egypt… (you can find the rest of the news at the address below).
Green hydrogen from Africa much more costly than previously assumed
Europe has high ambitions to meet its green hydrogen demand by importing from Africa, where abundant solar and wind resources could enable competitive production. However, a new study led by the Technical University of Munich (TUM) reveals that financing costs for green hydrogen projects in African countries are much higher than previously assumed, posing challenges to the economic viability of such exports.
The research analyzed over 10,000 potential sites in 31 African countries, accounting for country-specific factors like political stability, legal certainty, transportation, and storage infrastructure. Conventional models typically use uniform financing costs, but the study shows that interest rates for project financing in Africa could range from 8% to 27%, far above the 4–8% range previously assumed. Under current conditions, producing green hydrogen in Africa could cost nearly €5 per kilogram, making it uncompetitive without support. However, if European governments provide price and offtake guarantees, production costs could fall to about €3 per kilogram, improving competitiveness. Only around 2% of sites—roughly 200 locations mainly in Algeria, Kenya, Mauritania, Morocco, Namibia, and Sudan—could reach this competitive price level by 2030. Still, insecurity in some regions might further reduce viable locations. The study emphasizes that stable long-term agreements and financial guarantees are essential for enabling trade and reducing costs over time.
While African green hydrogen production has great potential, realizing competitive exports to Europe will require strong political support and risk mitigation measures from European governments. Without these, projects risk being uneconomical and failing to generate local economic benefits. Fair and stable policy frameworks are crucial to ensure that green hydrogen development supports both climate goals and sustainable development in Africa…. (you can find the rest of the news at the address below).
LSE: Morocco, leader in EV & green hydrogen technology
Morocco’s automotive sector has evolved from a regional car assembly hub into a rising global leader in electric vehicles (EV) and green hydrogen technology, according to a London School of Economics (LSE) report. The country is strategically positioning itself as a powerhouse in sustainable automotive manufacturing.
Morocco’s automotive journey began in 1959 with SOMACA assembling imported vehicles. Smart policies, such as the integration-compensation law and targeted free trade agreements, attracted major global automakers like Renault-Nissan, Stellantis (PSA), and China’s BYD. Together, they have boosted production to nearly one million cars annually, facilitated technology transfer, and developed specialized skills among Moroccan workers.
The Renault-Nissan plant in Tangier is Africa’s largest and greenest car factory, exporting 90% of its vehicles to 74 countries, while Stellantis has established a full automotive value chain in Kenitra. Morocco is now focused on building a decarbonized transportation value chain to support the shift to EVs and green hydrogen vehicles. BYD plans to expand its presence with three new factories focused on electric mobility, aligned with Morocco’s goal to produce one million mostly hybrid or electric vehicles by 2025.
The country’s geographic proximity to Europe, free trade agreements with the EU and US, and its integration into the African Continental Free Trade Area (AfCFTA) give it strategic export advantages. Morocco leverages its phosphate, cobalt, and manganese reserves, plus strong renewable energy production, to become a key player in the global EV supply chain.
Amid rising global competition and protectionism, Morocco is successfully navigating challenges by capitalizing on its geographic, resource, and policy strengths. Its commitment to innovation and sustainability positions it to solidify a leading role in the future automotive industry… (you can find the rest of the news at the address below).
MoPMR Discusses Natural Gas Role in Energy Mix, Taps Africa’s Energy Wealth
Alaa El-Batal, First Undersecretary at Egypt’s Ministry of Petroleum and Mineral Resources (MoPMR), highlighted Africa’s vast natural gas reserves and their strategic importance in the global energy mix during the African Energy Technology Conference (AETC) held in Accra, Ghana (May 27–29, 2025).
El-Batal emphasized natural gas’s advantages both as a key energy source and as a raw material for producing fertilizers and chemicals, which adds economic value and supports national economies. He stressed the need to harness Africa’s untapped gas reserves to enhance energy security and sustainability, while also tapping into the continent’s renewable energy and green hydrogen potential to attract investment aligned with global carbon reduction goals.
He pointed out the critical issue of energy poverty in Africa, especially the need for clean cooking fuels, sharing Egypt’s successful experience connecting over 15 million homes to natural gas, including in rural areas under the “Decent Life” (Hayah Karima) initiative. This effort has promoted social equality, empowered women, and reduced dependence on imported liquefied petroleum gas (LPG) by substituting it with domestic natural gas.
El-Batal underscored the importance of regional African cooperation for achieving sustainable development goals, highlighting the need for partnerships among governments, private sector actors, and international financial institutions. He reiterated Egypt’s commitment to expanding regional cooperation, particularly through knowledge sharing, to accelerate Africa’s energy sector development and ensure optimal use of the continent’s natural resources for sustainable growth and prosperity… (you can find the rest of the news at the address below).
Building Green Industries To Scale Green Economies: How Namibia Has Set The Pace For Africa’s Green Industrial Revolution
Africa faces growing energy demand amid global challenges like climate change, geopolitical tensions, and supply chain disruptions. These challenges also create a unique opportunity for Africa to transform its industrial sector and drive sustainable economic growth.
The continent is investing heavily in green energy and sustainable industries, guided by frameworks such as the African Union’s Agenda 2063 and AfCFTA. Renewable energy sources like solar, wind, and hydropower are central to Africa’s strategy to end energy poverty and promote green industrialization. Hydrogen technology, especially green hydrogen, is emerging as a key solution to decarbonize heavy industries and stimulate inclusive development. Namibia’s pioneering HyIron project exemplifies Africa’s leadership in green industrial innovation.
Africa is poised not only to benefit from the global energy transition but to shape it by building inclusive, climate-smart economies. Events like the Global African Hydrogen Summit 2025 will further catalyze investments and partnerships essential for fueling Africa’s green industrial revolution and sustainable future… (you can find the rest of the news at the address below).