African Development Bank allocates $20 million for green hydrogen projects

The African Development Bank (AfDB) has announced $20 million in repayable grants to support four green hydrogen projects across Egypt, Morocco, Namibia, and South Africa. Managed through the Sustainable Energy Fund for Africa (SEFA), these funds are intended to prepare projects for the investment phase by covering feasibility studies, engineering designs, and technical consultancy.

The selected projects, which represent an estimated total investment of $23 billion, include:

• Namibia: The Hyphen project, led by Hyphen Hydrogen Energy (Pty) Ltd, will receive $5.93 million. • Morocco: The Guelmim Green Hydrogen Valley, sponsored by Nareva Holding, will receive $5.28 million. • South Africa: The Saldanha Hydrogen DRI project, a collaboration between Enertrag SE and ArcelorMittal South Africa, will receive $5.24 million. • Egypt: The ‘Ra’ project, led by DAI Infrastruktur GmbH, will receive $3.55 million.

While the projects in Egypt, Morocco, and Namibia focus on developing sustainable fuels for the maritime and aviation sectors, the South African initiative targets low-carbon iron production. The funding aims to improve project bankability and attract foreign direct investment into Africa’s green hydrogen infrastructure.