Africa leverages hydrogen to decarbonise fertiliser production

From the newsletter

Africa is increasingly exploring green hydrogen and ammonia to decarbonise fertiliser production, a major source of agricultural emissions. Morocco-based phosphate producer OCP Group has signed a MoU with UNIDO to advance low-carbon fertiliser manufacturing, strengthen agricultural value chains and support climate-resilient farming.

• Conventional fertilisers widely used in Africa rely on fossil-fuel-based ammonia, generating substantial carbon emissions. 

• Green ammonia, made with green hydrogen, provides a practical alternative that can reduce carbon emissions from fertiliser production and support sustainable agriculture.

More details

• The five-year renewable MoU will see OCP Group and UNIDO collaborate to strengthen integrated agricultural value chains and agribusiness, support green hydrogen and green ammonia development, and advance industrial decarbonisation. Speaking at the signing ceremony, OCP Group’s Chief Sustainability & Innovation Officer, Hanane Mourchid, said the partnership aims “to foster resilient, inclusive growth that benefits farmers, communities, and the planet.” On his part, UNIDO’s Director General Gerd Müller added that “building a world without hunger requires stronger food systems, innovation and effective partnerships with the private sector.”

• The OCP-UNIDO partnership aligns with a broader trend across Africa, where governments and industry are increasingly pursuing renewable hydrogen pathways to decarbonise agriculture and strengthen food security. Agriculture accounts for roughly one-third of GDP in many African countries and supports hundreds of millions of livelihoods. Yet, the continent remains heavily dependent on conventional nitrogen fertilisers made from fossil-fuel-based ammonia, an emissions-intensive process that also contributes to high production costs.

• Recent years have seen a surge in green ammonia initiatives across Africa. In Kenya, China’s Kaishan Group is developing a 165.4 MW geothermal-powered green ammonia project in the Olkaria fields, aiming to produce 100,000 tons annually alongside urea and calcium ammonium nitrate. Namibia’s Hyphen project targets large-scale domestic and export production, while South Africa’s Coega Green Ammonia Project plans up to 1 million tons per year powered by a combination of solar and wind. Angola’s Capanda project, leveraging hydroelectricity, and additional Mauritanian initiatives, including the AMAN and NAYRAH projects, further illustrate the continent’s growing commitment. Egypt, Mauritania, and Morocco are also advancing renewable hydrogen and ammonia plans, reflecting a continent-wide movement toward next-generation fertiliser production.

• Green ammonia could reshape Africa’s agricultural resilience. UNIDO estimates that green ammonia can cut fertiliser-related emissions by up to 90% and help bridge the continent’s 5 million metric ton annual fertiliser shortfall sustainably. Locally produced green ammonia reduces reliance on volatile global markets and supports the creation of regional fertiliser hubs, serving domestic and neighbouring farmers. 

• Despite its promise, structural and economic hurdles remain. Production costs are higher than for blue ammonia due to renewable electricity and electrolyser prices. A report on the potential of green ammonia in Kenya found costs at two suitable sites roughly twice those of fossil-based ammonia, exceeding the market’s acceptable “green premium” that the market is willing to pay. This could limit adoption among farmers. As Sandra Banda, Technical Advisor at GIZ Kenya, noted, most farmers prioritise affordability over whether fertiliser is fossil-based or renewable. While production costs are expected to decline over time, green fertiliser remains less competitive in the short term.

• Safety and handling requirements present another layer of complexity. Anhydrous ammonia, the primary output of green ammonia plants, requires specialised equipment and strict procedures for production, storage, transport and on-farm application. While regulations and industry codes of practice can mitigate risks, they introduce additional compliance costs across the value chain, which can be particularly burdensome for smallholder farmers who form the backbone of African agriculture.

• There are also agronomic considerations. Balanced fertilisation is essential for crop productivity, soil health, and long-term sustainability. Green ammonia alone provides only nitrogen, meaning additional processing is required to produce multi-nutrient fertilisers that combine nitrogen, phosphorus, potassium, and essential micronutrients. This adds further operational complexity and cost, making it clear that building green ammonia plants is only one part of the solution. Developing green fertilisers that farmers prefer, and that deliver appropriate plant nutrition, requires additional investment in processing capacity, distribution networks and farmer training.

Our take

• Beyond decarbonisation, these projects position Africa as a global testbed for next-generation fertiliser technology. Countries with abundant renewable resources could leapfrog traditional industrial pathways and shape global green ammonia standards.

• Green ammonia development highlights the interdependence of energy and agriculture. By integrating renewable electricity, hydrogen production, and fertiliser manufacturing, African nations can create resilient energy-fertiliser clusters that buffer both energy and food systems from external shocks.

• The success of Africa’s green ammonia ambitions hinges on non-technical factors. Access to blended finance, credible offtake agreements, and enforceable safety standards will decide whether promising pilot projects evolve into industrial-scale production.