McKinsey – The Africa Hydrogen Opportunity, Mar 2024

Africa has a strong potential for clean hydrogen production due to its abundant renewable energy sources. Countries in Northern and Southern Africa have favorable solar and wind resources, while Central Africa has potential for hydroelectric power expansion. The East African Rift Valley could also develop geothermal energy. African countries like Mauritania, Namibia, and Morocco have high wind and solar capacity factors, making them competitive with global producers. With vast renewable energy potential, Africa can tap into hydrogen production without impacting domestic energy supply. Export opportunities to Europe and Asia could provide a steady basis for African hydrogen production. North African countries' proximity to Europe allows for low-cost gaseous hydrogen transport through pipelines. Southern and Eastern African countries could enter the hydrogen market by producing hydrogen derivatives like ammonia and methanol. African ports could serve as bunkering locations for sustainable shipping fuels. As global demand for hydrogen grows, Africa could become a major player in the hydrogen market.