The African Development Bank Group will provide reimbursable grants worth USD 20 million to support four green hydrogen/derivatives projects in Egypt, Morocco, Namibia and South Africa.

The financing will be extended under the Africa Green Hydrogen Programme’s call for Proposals (CfP), which took place from 10 April 2026 through 11 May 2026. The Bank Group’s Vice President for Power, Energy, Climate Change and Green Growth, Kevin Kariuki, announced the CfP outcomes during the Africa Green Hydrogen Summit 2026 in Cape Town on Tuesday.

Pending approval by the Bank’s Board of Directors, the Sustainable Energy Fund for Africa (SEFA) will provide the funding, which is intended to prepare projects for investment.

The projects span sustainable marine and aviation fuels (Egypt, Morocco and Namibia) and low-carbon iron (South Africa). Project ‘Ra’ in Egypt (sponsored by DAI Infrastruktur GmbH) will receive $ 3.55 million; Guelmim Green Hydrogen Valley in Morocco (sponsored by Nareva Holding) secured $ 5.28 million; the Hyphen project (sponsored by Hyphen Hydrogen Energy (Pty) Ltd) will receive USD 5.93 million; and Saldanha Hydrogen DRI in South Africa, (sponsored by Enertrag SE in collaboration with ArcelorMittal South Africa), secured USD 5.24 million. The four projects represent estimated investments of USD 23 billion, as well as 20GW equivalent of solar and wind energy generation capacity, 7 GW of electrolyser capacity and 2950 MWh of battery energy storage capacity.

The Africa Green Hydrogen Programme aims to catalyse private sector participation in the hydrogen infrastructure segment by improving bankability and promoting foreign direct investment. Leveraging green hydrogen and its derivatives for storage of solar and wind power is expected to accelerate renewable energy development by eliminating the need for fossil fuels and reducing carbon emissions.

“Africa’s exceptional renewable energy resources give the continent a unique opportunity to become a competitive player in the emerging global green hydrogen and derivatives market,” said Daniel Schroth, Bank Group Director for Renewable and Energy Efficiency. Through the SEFA-funded AGHP, the African Development Bank is helping to move high-potential projects closer to investment readiness.”

The programme will also drive local socio-economic development by increasing access to desalinated potable water and electricity by harnessing surplus generation. It will also advance industrial development, export revenue generation, as well as the transfer of knowledge, technology, skills as well as job creation.

"Being selected under the Africa Green Hydrogen Programme is a strong recognition of the work our team and partners have put into Project Ra over the past several years,” said Ioannis Papassavvas, CEO of DAI Infrastruktur. “We thank the African Development Bank and SEFA for this support and look forward to working closely with the Bank as Project Ra moves toward delivering green ammonia to European and global markets from the heart of the Suez Canal corridor.”

“The Saldanha Hydrogen DRI Project represents a unique opportunity to repurpose and revitalise a strategic industrial asset while positioning South Africa to participate meaningfully in the emerging low-carbon iron economy. By leveraging existing infrastructure, world-class iron ore resources, and abundant renewable energy potential, the project creates a pathway to produce a globally competitive, low-carbon iron product that supports industrial decarbonisation, domestic beneficiation, and long-term economic growth. This project demonstrates how South Africa can build on its industrial heritage to create new opportunities in a low-carbon future,” said Aldrich Louis, Senior Manager, ArcelorMittal South Africa.

“The Saldanha Hydrogen DRI Project showcases the transformative potential of integrating renewable energy, green hydrogen and industrial production at scale. ENERTRAG brings more than 30 years of experience in renewable energy and integrated energy systems, and we are proud to work alongside ArcelorMittal South Africa on a project that could become a global benchmark for industrial decarbonisation. Saldanha offers an opportunity to combine exceptional renewable resources with existing industrial infrastructure to produce low-carbon iron for international markets,” said Enos Banda, Chief Executive Officer, Enertrag South Africa.

"Hyphen is absolutely delighted to have been one of four projects selected out of a competitive process for the prospective award of a reimbursable grant under the Africa Green Hydrogen Programme. Hyphen’s selection is a testament to the quality and maturity of the project. This facility builds on Hyphen's existing relationship with the African Development Bank," said Marco Raffinetti, CEO, Hyphen Hydrogen Energy.

The Africa Green Hydrogen Programme’s call for proposals attracted 81 proposals for projects located in 18 African countries.

Source:   FCW Team