Hydrogen use in Africa reached 3.1 Mt in 2024, about 3% of the global total. Hydrogen production accounted for about 6% of the region’s gas demand and 2% of regional CO2 emissions. Hydrogen use is concentrated in 6 countries (out of 54), with Egypt representing nearly half, followed by Algeria (20%), Nigeria (17%), South Africa (5%), Libya (5%) and Equatorial Guinea (3%). Ammonia production accounted for nearly three-quarters of hydrogen demand.

Today, only 6 kt of low-emissions hydrogen are produced in Africa, exclusively from renewables. The hydrogen project pipeline to 2030 has 31 projects, which could allow increasing production to 1.2 Mt, but only one has reached final investment decision (FID). Many projects are at the GW-scale, and will take time to bring to fruition. Chinese companies have been active in financing and developing projects in Africa, as well as supplying equipment to these projects.

Africa’s fertiliser use is about one-sixth of the global average and the continent has a large food trade deficit. Domestic production of ammonia could improve access to nitrogen fertilisers, supporting higher agricultural productivity and food production, while reducing exposure to price volatility. If Africa were to achieve its fertiliser use targets, it would create demand for 1.5 Mt of hydrogen, although more than 80% of the announced ammonia capacity is intended for exports.

Today, over 80% of Africa’s ironmaking capacity is based on direct reduced iron (DRI), which provides a strong basis for blending hydrogen with natural gas in existing and new plants. Africa is a net exporter of iron ore, and iron ore production could more than double by 2030 should plans materialise. Integrated strategies combining iron ore, natural gas, renewables and demand could allow African countries to displace imports and create more domestic value.

Africa exports nearly 75% of its methanol production today (3% of global trade). Displacing production with renewable methanol could free up some natural gas to reduce imports and help address dwindling domestic production (Egypt) or increase exports (Equatorial Guinea). In shipping, African ports can offer alternative fuels and contribute to the development of shipping corridors.

Near-term actions include reducing the cost of capital through blended finance funds, offtake guarantees, credit guarantees and insurance. A balance between domestic hydrogen use and exports could provide the greatest opportunities for deployment, and longer-term growth can be enabled by planning the rollout of hydrogen infrastructure and developing certification schemes today.