AfDB selects four green hydrogen projects of $20 million grants in Africa

Egypt’s Project Ra, sponsored by DAI Infrastruktur GmbH, has been allocated $3.55 million, with Morocco’s Guelmim Green Hydrogen Valley, sponsored by Nareva Holding, selected for $5.28 million.

Four green hydrogen projects in Egypt, Morocco, Namibia and South Africa have been selected for a combined $20 million in reimbursable grants from the African Development Bank Group, giving developers support to prepare for investment. The proposed funding, which remains subject to approval by the Bank's Board of Directors, would come from the Sustainable Energy Fund for Africa (SEFA). The selected developments represent an estimated $23 billion in investment, covering hydrogen-based marine and aviation fuels and low-carbon iron production.

Four projects share funding for investment preparation

Egypt's Project Ra, sponsored by DAI Infrastruktur GmbH, has been allocated $3.55 million, with Morocco's Guelmim Green Hydrogen Valley, sponsored by Nareva Holding, selected for $5.28 million. Namibia's Hyphen project, sponsored by Hyphen Hydrogen Energy (Pty) Ltd, is in line for $5.93 million. South Africa's Saldanha Hydrogen DRI project, developed by Enertrag SE in collaboration with ArcelorMittal South Africa, accounts for the remaining $5.24 million, supporting preparations for a development focused on low-carbon iron.

The projects collectively represent 20 GW of equivalent solar and wind generation capacity, 7 GW of electrolyser capacity and 2,950 MWh of battery storage. Those figures describe the scale of the proposed developments; the grants would support investment preparation. Kevin Kariuki, the Bank Group's Vice President for Power, Energy, Climate Change and Green Growth, announced the selections at the Africa Green Hydrogen Summit 2026 in Cape Town. The programme's call for proposals, held from 10 April to 11 May 2026, attracted 81 submissions from 18 African countries.

Turning renewable resources into fuels and industrial products

The Africa Green Hydrogen Programme supports project preparation to make developments more attractive to private investors and encourage foreign direct investment in hydrogen infrastructure. Its approach connects Africa's solar and wind resources with hydrogen and its derivatives, providing a way to store renewable energy and reduce reliance on fossil fuels. Daniel Schroth, the Bank Group's Director for Renewable Energy and Energy Efficiency, described the continent's renewable resources as an opportunity to compete in the emerging global hydrogen market, with SEFA funding helping promising projects move closer to investment readiness.

For Project Ra, the selection supports preparations to supply green ammonia to European and global markets from Egypt's Suez Canal corridor. DAI Infrastruktur CEO Ioannis Papassavvas described the decision as recognition of several years of work by the project's team and partners, welcoming further cooperation with the Bank and SEFA. Hyphen CEO Marco Raffinetti said his project's selection reflected its quality and maturity, noting that the prospective reimbursable grant would build on the developer's existing relationship with the African Development Bank.

South Africa's iron ambitions carry wider local benefits

Saldanha's developers see an opportunity to bring a strategic industrial asset back into productive use through renewable energy and hydrogen. Aldrich Louis, Senior Manager at ArcelorMittal South Africa, pointed to existing infrastructure, strong iron ore resources and renewable energy potential as foundations for competitive low-carbon iron production. The expected benefits include lower industrial emissions, more domestic processing of mineral resources and long-term economic growth. Enertrag South Africa CEO Enos Banda said the company brings more than 30 years of renewable energy and integrated energy systems experience to the partnership, describing Saldanha as a potential global benchmark for industrial decarbonisation.