Bunkering is a growing opportunity in global hydrogen economy

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Shipping decarbonisation is emerging as a potentially significant demand driver for green hydrogen in Africa. A new report by the Green Hydrogen Organisation highlights North Africa’s competitive positioning in green bunkering, which could shift the continent’s role from fuel exporter to service provider in global shipping. 

• Regulatory pressure on the maritime sector is accelerating the shift toward alternative fuels in an industry responsible for roughly 3% of global emissions, creating a policy-driven market for green hydrogen derivatives such as ammonia. 

• For Africa, this creates an alternative pathway into the hydrogen economy. Rather than competing solely as an exporter of green fuels, countries can position themselves as service providers, capturing value through bunkering, port infrastructure and trade logistics. 

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• Africa’s renewable energy potential positions it to produce green hydrogen derivatives suited to maritime transport, particularly green ammonia, which is emerging as the dominant shipping fuel due to its relative ease of storage, transport and existing port infrastructure. This could shift Africa’s hydrogen opportunity from commodity exports towards maritime services, with ports located along major shipping corridors able to generate recurring revenue from refuelling, storage and cargo handling as low-carbon shipping networks begin to form. 

• Geography reinforces this advantage. North Africa sits along some of the world’s most important maritime corridors, with the Suez Canal handling roughly 10–15% of global maritime trade by volume in recent years. The Strait of Gibraltar is also a critical gateway between the Atlantic and the Mediterranean, channelling significant regional shipping flows. As shipping transitions to low-emission fuels, these routes are expected to play an increasingly strategic role in bunkering decisions, particularly as new fuel systems reshape vessel design and refuelling requirements. This could gradually shift shipping patterns toward ports offering reliable, cost-competitive green fuel supply. 

• North Africa’s cost advantage further strengthens this opportunity. Renewable electricity costs in the region are among the lowest globally, with solar prices in Egypt reaching as low as $0.02/kWh and wind at around $0.024/kWh. Given that electricity accounts for roughly two-thirds of hydrogen production costs, this positions the region to supply cost-competitive fuels, a key determinant of where ships choose to refuel. 

• EU shipping regulations are also shaping bunkering economics. FuelEU Maritime requires ships to progressively increase the share of green fuels used on voyages involving European ports, incentivising operators to seek cost-competitive refuelling hubs in nearby regions such as North Africa. 

• Africa is already positioning itself to tap this opportunity. North Africa hosts 74 announced hydrogen and derivatives projects, 47 of which are located at ports or along coastal areas. Within this broader pipeline, ammonia dominates, accounting for 42 announced developments across the region. This concentration strengthens the case for port-based hydrogen ecosystems that connect maritime demand with domestic industries such as fertiliser production.

• However, at the infrastructure level, readiness remains more limited. While 17 ammonia and methanol-related infrastructure projects have been identified at ports, much of the additional storage capacity is not expected to come online until 2029–2030, particularly in Egypt and Mauritania. This lag, combined with the early-stage nature of most projects highlights a persistent gap between project pipelines and execution, with high capital costs and limited pre-FID support further constraining the development of large-scale bunkering infrastructure.  

• These infrastructure constraints are also reflected in the limited development of green shipping corridors across North Africa. While Morocco’s Tanger-Med and Egypt’s East Port Said have been designated by the EU as neighbouring container transhipment ports under FuelEU Maritime and the EU Emissions Trading System (EU ETS), broader participation in corridor development remains weak. Despite 84 green corridor initiatives globally, only one has been announced in the region, linking Tanger-Med in Morocco to Tarifa in Spain, reducing opportunities to anchor early demand and develop integrated fuel supply systems. 

• Policy uncertainty further complicates the outlook. The delayed adoption of the International Maritime Organization’s net-zero framework (IMO NZF) has weakened near-term demand visibility, while regional measures, particularly in Europe, are creating early but fragmented market signals. Without clearer global alignment, investment in both fuel production and bunkering infrastructure may continue to lag. However, if adopted, the IMO NZF could unlock substantial financing for port upgrades and green fuel infrastructure, with the associated net-zero fund projected to mobilise up to $12 billion annually.

Our take

• While bunkering presents a pathway for Africa to capture a share of value in the emerging hydrogen economy, it remains a midstream opportunity rather than a full value-chain anchor. Without coordinated investment in port infrastructure, storage capacity, and offtake-linked market development, the continent risks remaining primarily a supplier of green fuels while higher-value maritime services and trading functions are captured in established global hubs. 

• At the same time, the shift towards maritime fuels is reinforcing green ammonia, rather than hydrogen itself, as Africa’s most viable export pathway. While this could accelerate project development by aligning with near-term demand, it also risks narrowing the continent’s hydrogen strategy to a single derivative.