African Development Bank to fund green hydrogen projects in four African countries with $20 million

The African Development Bank Group (AfDB) will provide reimbursable grants totaling USD 20 million to support four green hydrogen and derivatives projects in Egypt, Morocco, Namibia and South Africa, according to a press release. The Bank Group’s Vice President for Power, Energy, Climate Change and Green Growth, Kevin Kariuki, announced the outcomes at the Africa Green Hydrogen Summit 2026 in Cape Town on Tuesday. Pending Board approval, the Sustainable Energy Fund for Africa (SEFA) will deliver the funding. The grants are intended to prepare the selected projects for investment. The announcement follows the Africa Green Hydrogen Programme’s call for proposals held from 10 April 2026 through 11 May 2026.

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. It should eliminate the need for fossil fuels and reduce carbon emissions. The call for proposals attracted 81 submissions for projects located in 18 African countries. Four projects were ultimately selected for support.

The selected initiatives span sustainable marine and aviation fuels in Egypt, Morocco and Namibia, and low-carbon iron in South Africa. Project ‘Ra’ in Egypt, sponsored by DAI Infrastruktur GmbH, will receive USD 3.55 million. The Guelmim Green Hydrogen Valley in Morocco, sponsored by Nareva Holding, secured USD 5.28 million. The Hyphen project, sponsored by Hyphen Hydrogen Energy (Pty) Ltd, will receive USD 5.93 million. Saldanha Hydrogen DRI in South Africa, sponsored by Enertrag SE with ArcelorMittal South Africa, secured USD 5.24 million.

Together, the four projects represent estimated investments of USD 23 billion, along with 20 GW equivalent of solar and wind generation capacity, 7 GW of electrolyser capacity and 2,950 MWh of battery energy storage capacity. The programme is also expected to drive local socio-economic development by expanding access to desalinated potable water and electricity through surplus generation. It will advance industrial development, export revenue generation, and the transfer of knowledge, technology and skills, as well as job creation. Daniel Schroth, Bank Group Director for Renewable and Energy Efficiency, said:

“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.” He added that through SEFA-funded AGHP, the Bank is helping move high-potential projects closer to investment readiness.

Project sponsors welcomed the selection as recognition of years of preparatory work. Ioannis Papassavvas, CEO of DAI Infrastruktur, said his team looked forward to working with the Bank as Project Ra advances toward delivering green ammonia to European and global markets from the Suez Canal corridor. Marco Raffinetti, CEO of Hyphen Hydrogen Energy, described Hyphen’s selection as “a testament to the quality and maturity of the project.” Aldrich Louis, Senior Manager, ArcelorMittal South Africa, said the Saldanha Hydrogen DRI Project positions South Africa to participate meaningfully in the emerging low-carbon iron economy. Enos Banda, Chief Executive Officer of Enertrag South Africa, said the project could become a global benchmark for industrial decarbonisation.