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African Development Bank (AFDB) backs four green hydrogen projects with USD 20 million funding

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African Development Bank (AFDB) backs four green hydrogen projects with USD 20 million funding
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The African Development Bank (AFDB) Group has selected four green hydrogen and derivatives projects in Egypt, Morocco, Namibia and South Africa for USD 20 million in prospective reimbursable grants. Subject to Board approval, the funding will support project preparation and investment readiness across sustainable fuels and low-carbon industrial production.

EGYPT; MOROCCO Four green hydrogen and derivatives developments across Egypt, Morocco, Namibia and South Africa have been selected for prospective reimbursable grants totaling USD 20 million from the African Development Bank (AFDB) Group. The funding is being allocated through the Africa Green Hydrogen Programme following a Call for Proposals that ran from April 10 to May 11, 2026.

The Sustainable Energy Fund for Africa is expected to provide the grants, subject to approval by the Bank’s Board of Directors. The financing is intended to advance project preparation and move the selected developments closer to investment readiness, rather than fund completed commercial operations.

Project Ra in Egypt, sponsored by DAI Infrastruktur, is allocated USD 3.55 million, while Morocco’s Guelmim Green Hydrogen Valley, sponsored by Nareva Holding, is allocated USD 5.28 million. Hyphen Hydrogen Energy’s project in Namibia is set to receive USD 5.93 million, and the Saldanha Hydrogen DRI project in South Africa, sponsored by Enertrag in collaboration with ArcelorMittal South Africa, is allocated USD 5.24 million.

The four developments represent an estimated combined investment of USD 23 billion. Their planned infrastructure includes the equivalent of 20 GW of solar and wind generation capacity, 7 GW of electrolyser capacity and 2,950 MWh of battery energy storage. The project portfolio covers sustainable marine and aviation fuels in Egypt, Morocco and Namibia, while the South African development targets low-carbon iron production using hydrogen-based direct reduction.

The scale and diversity of the selected projects create potential demand across renewable power generation, electrolysis, battery storage, hydrogen infrastructure, industrial equipment and related engineering services. The Saldanha development also connects green hydrogen investment with the metals and steel value chain, while the projects in Egypt, Morocco and Namibia extend hydrogen applications into transport fuel markets.

For investors and project developers, the grant programme addresses an early-stage financing requirement by supporting technical and commercial preparation before larger capital commitments are made. The selection also provides a pipeline of projects that could require substantial private investment if they progress through development and financing stages.

The African Development Bank Group is a multilateral development finance institution focused on supporting economic and social development across Africa. Its Sustainable Energy Fund for Africa provides concessional and catalytic financing for renewable energy and energy-access initiatives. The latest hydrogen programme attracted 81 proposals from projects located in 18 African countries, indicating a broad pipeline of potential developments beyond the four selected projects.

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