By Dr DF Duvenhage

ABSTRACT

As the global race to decarbonize accelerates, green hydrogen (GH₂) has emerged as a critical vector for clean energy transitions—especially in hard-to-abate sectors such as steel, shipping, aviation, and fertilizers. With the European Union (EU) and other Western economies setting ambitious hydrogen import targets under frameworks like REPowerEU, attention is turning to Africa as a potential production hub. While Namibia has dominated early headlines, countries like Morocco and South Africa are rapidly gaining momentum. This article assesses the technical, policy, and geopolitical dimensions of green hydrogen development in Morocco and South Africa, and evaluates their prospects as key exporters to Europe. By analyzing infrastructure readiness, project pipelines, bilateral partnerships, and regulatory alignment, we examine whether these two African economies can become global leaders in GH₂.

INTRODUCTION

Green hydrogen—produced using renewable electricity and water via electrolysis—is increasingly viewed as the missing link in deep decarbonization. Unlike blue hydrogen (derived from natural gas with carbon capture), green hydrogen offers near-zero lifecycle emissions. However, GH₂ production is energy-intensive and economically viable only in regions with abundant renewables, available land, and supportive policy frameworks.

Africa is uniquely positioned to become a green hydrogen powerhouse. Vast solar and wind resources, coupled with rising international interest, have catalyzed early-stage investments across the continent. While Namibia has received widespread attention, Morocco and South Africa are emerging as strong contenders. Each brings unique strengths: Morocco with its proximity to Europe and integrated renewables sector, and South Africa with its industrial base, mineral resources, and hydrogen-ready infrastructure.

This article compares and contrasts Morocco’s and South Africa’s green hydrogen strategies and assesses their export alignment with EU markets. It also examines how local socioeconomic and environmental concerns are being managed to ensure inclusive and sustainable hydrogen development.

The Strategic Logic of Green Hydrogen Exports

Global Market Drivers

The European Union is targeting the import of 10 million tonnes of renewable hydrogen annually by 2030 as part of its REPowerEU plan [1]. Green hydrogen will be critical for decarbonizing sectors that cannot easily be electrified, such as shipping, long-haul freight, fertilizers, steel production, and chemical manufacturing. These sectors contribute a significant share of global emissions and require alternative fuel pathways that offer energy density and process compatibility.

Despite its leadership in climate action, Europe faces structural limitations in deploying renewable energy at the scale required for cost-competitive hydrogen production. High land-use competition, densely populated regions, and intermittent renewable generation all contribute to elevated costs. According to the European Hydrogen Backbone initiative, even under optimistic scenarios, EU-based green hydrogen will remain more expensive than imports from resource-rich regions for at least the next decade (European Hydrogen Backbone, 2022).

This creates a significant market opportunity for sun-rich and wind-rich regions outside the EU, especially in North and Southern Africa, where solar PV and wind capacity factors exceed those in most European locations. The International Renewable Energy Agency (IRENA) has identified North Africa as a future hydrogen export hub due to its exceptional solar irradiance, availability of land, and access to European markets (IRENA, 2022). Similarly, Southern Africa has been recognized for its technical potential and growing policy momentum in the hydrogen space, supported by bilateral partnerships and international finance flows. With cost projections for green hydrogen in Africa potentially dropping below USD 1.50/kg by 2030, the continent is well-positioned to meet a significant share of Europe’s future import demand.

Why Africa?

Africa offers several intrinsic and strategic advantages that uniquely position the continent to become a key global supplier of green hydrogen. One of the primary factors is its exceptional renewable energy potential. The Sahara Desert alone receives solar irradiation levels exceeding 2,500 kWh/m²/year. At the same time, coastal regions in Morocco, Namibia, and South Africa benefit from steady wind speeds ideal for high-capacity factor hybrid systems (IEA, 2022). This results in some of the lowest levelized electricity (LCOE) costs globally, which directly lowers the cost of hydrogen produced via electrolysis.

In addition to its favorable natural endowment, Africa’s vast land availability is a significant asset. Low population density in regions such as the Karoo (South Africa), southern Morocco, and the Namib Desert reduces the risk of land-use conflicts and facilitates the development of large-scale renewable and hydrogen infrastructure. According to the International Finance Corporation (IFC), Africa has over 1,000 GW of technical potential in solar and wind energy across zones with minimal competing land uses (IFC, 2023).

Africa also benefits from deepwater ports with direct shipping access to Europe. Countries such as Morocco, Mauritania, South Africa, and Namibia have identified strategic coastal zones for export terminals capable of handling ammonia or liquefied hydrogen. These locations shorten transport distances to European markets, reducing logistics costs and emissions associated with long-haul maritime transport (Hydrogen Economist, 2023).

Finally, there is a strong geopolitical alignment between African nations and European hydrogen importers. The EU’s Global Gateway and Green Deal Industrial Plan prioritize green hydrogen partnerships in Africa through funding, infrastructure support, and certification assistance (European Commission, 2023). Bilateral agreements, such as those between Germany and Morocco or South Africa, reflect growing diplomatic and financial backing to help accelerate project development.

While infrastructure, certification, and policy harmonization remain challenges, Africa’s combination of natural advantages, land access, export positioning, and growing international support makes it a compelling candidate to lead in the global green hydrogen trade.

Morocco: North Africa’s Hydrogen Gateway

Renewable Power Foundation

Morocco has long positioned itself as a renewable energy leader in the MENA region. With more than 4 GW of installed renewable capacity—mostly solar and wind—the country has a mature clean energy sector that is now being leveraged for GH₂ production. The country benefits from a high photovoltaic potential of around 5.5 kWh/m²/day and consistent Atlantic wind speeds in excess of 9 m/s in some areas [8].

The Noor Ouarzazate Solar Complex, one of the world’s largest, and the integrated wind corridor stretching from Tangier to Tarfaya form the backbone of Morocco’s energy strategy. According to the Moroccan Agency for Sustainable Energy (MASEN), Morocco aims to achieve over 52% renewables in its electricity mix by 2030 [2].

Hydrogen Roadmap and Export Focus

In 2021, Morocco launched its National Hydrogen Strategy, which targets the annual production of up to 4 million tonnes of green ammonia, primarily for export to Europe. The strategy emphasizes Power-to-X technologies, with a focus on ammonia, methanol, and synthetic fuels. Morocco is also a founding member of the Global Hydrogen Organisation (GH2), which is working to align certification and trade practices globally [8].

Key projects include:

  • HEVO Ammonia Morocco: A $1.6 billion joint venture between Fusion Fuel and Consolidated Contractors Group, aiming to produce 183,000 tonnes of green ammonia per year [3].
  • GreenH2A: A multi-phase 10 GW project planned near Guelmim, targeting European markets. The project is being developed by the Energy Investment Company (SIE) in cooperation with international investors and will include desalination, electrolysis, and ammonia synthesis facilities [9].

As of 2023, Morocco’s government approved 25 green hydrogen and ammonia proposals worth a combined $32.5 billion in investment commitments, reflecting the scale and urgency of its export-oriented strategy [10]. These projects aim to leverage Morocco’s proximity to Europe—particularly Spain—and its integration with the European energy grid via the Maghreb–Europe Gas Pipeline corridor.

Strategic Position and Challenges in the MENA Region

Morocco’s strategic location at the intersection of Africa and Europe and its political stability and strong international partnerships position it as a leading GH₂ hub in the MENA region. Its access to European markets via existing gas interconnectors and maritime routes provides a logistical edge over other regional competitors. Furthermore, Morocco’s leadership in renewable policy and clean energy diplomacy has strengthened its role as a hydrogen frontrunner in Africa.

However, a recent report highlights significant implementation challenges. According to an analysis published by Morocco World News, the country faces regulatory bottlenecks, insufficient coordination between national agencies, and delays in permitting that threaten to slow hydrogen project timelines [11]. Gaps in local skills development, grid integration, and water governance also raise concerns about Morocco’s hydrogen sector’s long-term sustainability and inclusiveness. While the country has ambitious goals, translating strategy into scalable execution will require targeted reforms, better inter-ministerial coordination, and stronger community engagement mechanisms.

Morocco’s position remains one of high potential, but not without significant hurdles.

Partnerships and Funding

Germany, the Netherlands, and the EU have all identified Morocco as a priority hydrogen partner. The German Development Agency (GIZ) has funded feasibility studies, while the European Investment Bank is evaluating concessional financing mechanisms. A 2022 memorandum of understanding between Morocco and Germany formalized cooperation in hydrogen certification, technology transfer, and market access [4]. in the MENA region. With more than 4 GW of installed renewable capacity—mostly solar and wind—the country has a mature clean energy sector that is now being leveraged for GH₂ production.

The Noor Ouarzazate Solar Complex, one of the world’s largest, and the integrated wind corridor stretching from Tangier to Tarfaya form the backbone of Morocco’s energy strategy. According to the Moroccan Agency for Sustainable Energy (MASEN), Morocco aims to achieve over 52% renewables in its electricity mix by 2030 [2].

South Africa: Industrial Scale and Resource Depth

Industrial Capability and Resource Synergies

South Africa is leveraging its existing industrial and mining infrastructure to accelerate green hydrogen adoption. With 80% of the world’s platinum group metals (PGMs)—key for proton exchange membrane (PEM) electrolyzers—South Africa is uniquely positioned to localize hydrogen technology supply chains.

Moreover, the country has extensive infrastructure in Sasolburg and Secunda that can be retrofitted for synthetic fuel production. Eskom and Sasol have both committed to decarbonization via green hydrogen.

National Hydrogen Strategy

South Africa’s Hydrogen Society Roadmap, published in 2021, envisions a $10 billion GH₂ industry by 2030. The strategy targets domestic decarbonization, export markets, and industrial beneficiation of PGMs [5].

Key initiatives include:

Boegoebaai Green Hydrogen Hub: Backed by Sasol and the Industrial Development Corporation (IDC), this Northern Cape project is designed as a 60 GW renewable and hydrogen complex [6].

Hydrogen Valley Initiative: A corridor from Johannesburg to Durban that integrates production, distribution, and offtake.

These projects align with broader industrial policy, including localization, skills development, and energy security.

Skills Development, Global Partnerships, and Risk Management

Recognizing the need to build local expertise in hydrogen technologies, South Africa has launched dedicated skills development programs. One of the most notable is the Hydrogen Centre of Excellence, established in partnership between Vaal University of Technology and Standard Bank. The centre will offer interdisciplinary training focused on electrolysis, systems integration, safety protocols, and renewable energy management, aiming to equip students and professionals with the skills needed to participate in the country’s emerging hydrogen economy [12].

South Africa has also signed bilateral hydrogen agreements with Germany, Japan, and the Netherlands. GIZ and the World Bank are supporting technical assistance and capacity-building programs [7].

However, challenges persist. A recent report by Engineering News points to the need to balance industrial hydrogen use with grid resilience, water availability, and environmental integrity. Grid constraints, especially in rural and industrial regions, may impede timely deployment. Additionally, load shedding, policy uncertainty, and fragmented permitting processes remain barriers to large-scale hydrogen development [13]. Ongoing reforms in Eskom and the renewable energy IPP programme will be critical for success.

Despite these obstacles, South Africa’s combination of resource wealth, industrial infrastructure, and policy ambition gives it a distinct edge. The next phase of development will hinge on integrated planning across energy, water, and skills development systems.

South Africa has signed bilateral hydrogen agreements with Germany, Japan, and the Netherlands. GIZ and the World Bank are supporting technical assistance and capacity-building programs [7].

However, challenges persist: load shedding, grid constraints, and water scarcity could delay implementation. Ongoing reforms in Eskom and the renewable energy IPP programme will be critical.

Shared Challenges and Comparative Analysis

Infrastructure and Water Constraints

Both Morocco and South Africa require significant infrastructure investments in desalination, electrolysis, storage, and port logistics. In Morocco, solar-powered desalination facilities are expanding in Agadir and are expected to support future hydrogen production. However, large-scale projects face permitting and financing delays. Similarly, in South Africa, the use of reclaimed wastewater and investments in inland desalination are being considered to ensure a sustainable water supply for electrolysis in water-scarce regions like the Northern Cape (Hydrogen Insight, 2023).

Moreover, the lack of dedicated hydrogen pipelines and high-voltage transmission infrastructure limits project scalability. South Africa’s power transmission network is under pressure due to aging infrastructure and repeated load shedding, which constrains a reliable energy supply to industrial hydrogen facilities. Meanwhile, Morocco faces integration challenges between isolated renewable projects and export terminals. Without synchronized infrastructure development, both countries risk project delays and suboptimal asset utilization.

Certification and Market Access

Accessing premium hydrogen markets in Europe requires full compliance with EU sustainability standards under the Renewable Energy Directive II (RED II) and the forthcoming Carbon Border Adjustment Mechanism (CBAM). Both Morocco and South Africa are actively engaging with European partners to develop internationally recognized certification systems for green hydrogen. However, lack of clarity on temporal matching, additionality, and emissions accounting continues to pose risks to bankability (Euractiv, 2023).

Bilateral agreements, such as the German H2Global mechanism, have begun offering offtake guarantees for African hydrogen, but large-scale implementation is still in its infancy. A recent study by the African Hydrogen Partnership highlights the need for harmonized digital platforms to track hydrogen lifecycle emissions, which is essential to meet EU import criteria (AHP, 2024).

Social and Environmental Equity

Ensuring that green hydrogen benefits local populations is an emerging policy priority. In Morocco, hydrogen development is concentrated in underdeveloped regions such as Guelmim-Oued Noun, where the government has promised job creation and local reinvestment. However, civil society organizations have called for greater transparency in community consultations and land-use decisions (Morocco World News, 2025).

South Africa is integrating hydrogen development with its broader Just Energy Transition strategy, especially in provinces like Mpumalanga, which are transitioning away from coal. Government plans emphasize retraining coal workers, strengthening local supply chains, and building regional innovation hubs. However, analysts warn that unless equity ownership and revenue-sharing schemes are clearly defined, the sector could replicate extractive models of the past, with limited benefits for affected communities (Engineering News, 2025).

As both countries advance, proactive policy design, community engagement, and long-term social impact monitoring will be essential to ensure that green hydrogen delivers both climate gains and inclusive and sustainable development outcomes.

The Outlook: Who Leads Africa’s Hydrogen Future?

While Morocco enjoys geographic proximity to Europe and a streamlined energy policy environment, South Africa offers industrial scale and mineral synergies. Both nations are set to play pivotal roles in shaping Africa’s hydrogen narrative.

Success will depend on:

Securing long-term offtake agreements with EU buyers.

Rapid buildout of renewable and electrolysis infrastructure.

Policy coordination across trade, energy, and environment ministries.

Community engagement and equitable benefit-sharing mechanisms.

Robust certification frameworks aligned with international standards.

Investment in education, training, and industrial localization.

Yet, the hydrogen race is not simply about infrastructure or market share—it’s a litmus test for whether Africa’s energy transition can truly be inclusive, strategic, and future-proof. The continent stands at a historic inflection point: either as a passive provider of raw molecules to the Global North, or as a co-architect of the next global energy economy.

Morocco and South Africa are leading the way, but the story is far from complete. Will green hydrogen empower African nations to leapfrog into high-value industrial economies? Can these projects catalyze transformative development in underserved regions? The answers will unfold over the coming decade, shaped by bold leadership, coherent policy, and the ability to balance speed with social depth.

As European import demand crystallizes, the race is on to turn pilot projects into export-ready pipelines. Whether Morocco’s desert pipelines or South Africa’s hydrogen valleys reach the port first remains to be seen, but Africa’s role in the global hydrogen economy is no longer hypothetical.

References

[1] European Commission, “REPowerEU Plan,” May 2022. [Online]. Available: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52022DC0230

[2] Moroccan Agency for Sustainable Energy (MASEN), “Overview of Morocco’s Renewable Energy Strategy,” 2023. [Online]. Available: https://www.masen.ma/en/

[3] Hydrogen Insight, “HEVO Ammonia Morocco project overview,” 2023. [Online]. Available: https://www.hydrogeninsight.com/

[4] GIZ, “Green Hydrogen Cooperation: Morocco,” 2022. [Online]. Available: https://www.giz.de/en/worldwide/94388.html

[5] Government of South Africa, “Hydrogen Society Roadmap for South Africa,” 2021. [Online]. Available: https://www.gov.za/sites/default/files/gcis_document/202102/43307gon122.pdf

[6] Sasol, “Boegoebaai Green Hydrogen Project,” 2023. [Online]. Available: https://www.sasol.com/sasol-hydrogen

[7] World Bank, “Green Hydrogen Opportunities for South Africa,” 2023. [Online]. Available: https://www.worldbank.org/en/news/feature/2023/02/15/green-hydrogen-opportunities-for-south-africa

[8] Global Hydrogen Organisation (GH2), “Morocco Country Profile,” 2024. [Online]. Available: https://gh2.org/countries/morocco

[9] Green Hydrogen Morocco, “Morocco’s First Green Hydrogen Production Project Gears Up in Guelmim-Oued Noun Region,” 2023. [Online]. Available: https://greenhydrogenmorocco.com/moroccos-first-green-hydrogen-production-project-gears-up-in-guelmim-oued-noun-region/

[10] MSN News, “Morocco Approves Green Hydrogen Projects Worth $32.5 Billion,” 2023. [Online]. Available: https://www.msn.com/en-us/news/other/morocco-approves-green-hydrogen-projects-worth-325-billion/ar-AA1AoT86

[11] Morocco World News, “Report Finds Significant Gaps in Morocco’s Transition to Green Energy,” March 2025. [Online]. Available: https://www.moroccoworldnews.com/2025/03/188499/report-finds-significant-gaps-in-moroccos-transition-to-green-energy/

[12] Bizcommunity, “Vaal University of Technology and Standard Bank to Launch Hydrogen Centre of Excellence,” 2025. [Online]. Available: https://www.bizcommunity.com/article/vaal-university-of-technology-and-standard-bank-to-launch-hydrogen-centre-of-excellence-925554a

[13] Engineering News, “Balancing Energy Demands and Sustainability: South Africa’s Hydrogen Revolution,” March 2025. [Online]. Available: https://www.engineeringnews.co.za/article/balancing-energy-demands-and-sustainability-south-africas-hydrogen-revolution-2025-03-25

[14] Hydrogen Insight, “Why green hydrogen is the key to industrial decarbonisation,” 2023. [Online]. Available: https://www.hydrogeninsight.com/analysis/why-green-hydrogen-is-the-key-to-industrial-decarbonisation/2-1-1438514

[15] Recharge News, “EU to rely on imported green hydrogen as bloc’s renewable resources too limited, says top adviser,” 2023. [Online]. Available: https://www.rechargenews.com/energy-transition/eu-to-rely-on-imported-green-hydrogen-as-blocs-renewable-resources-too-limited-says-top-adviser/2-1-1376385

[16] Euractiv, “EU seeks green hydrogen partnerships in Africa to meet import targets,” 2023. [Online]. Available: https://www.euractiv.com/section/energy/news/eu-seeks-green-hydrogen-partnerships-in-africa-to-meet-import-targets/

[17] International Energy Agency (IEA), “Africa Energy Outlook 2022,” 2022. [Online]. Available: https://www.iea.org/reports/africa-energy-outlook-2022

[18] International Finance Corporation (IFC), “Green Hydrogen in Africa: Scaling Up for Impact,” 2023. [Online]. Available: https://www.ifc.org/wps/wcm/connect/news_ext_content/ifc_external_corporate_site/news+and+events/news/cm-stories/green-hydrogen-africa

[19] Hydrogen Economist, “Hydrogen Export Corridors Gain Traction in Africa,” 2023. [Online]. Available: https://www.hydrogeneconomist.com/article/2dlo3ujk3zqgoj3r4u7cg/hydrogen-export-corridors-gain-traction-in-africa

[20] European Commission, “Green Deal Industrial Plan and Global Gateway,” 2023. [Online]. Available: https://ec.europa.eu/commission/presscorner/detail/en/ip_23_510

[21] African Hydrogen Partnership (AHP), “Hydrogen Trade Standards and Lifecycle Emissions in Africa,” 2024. [Online]. Available: https://africanh2.org

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