Can green hydrogen build urban resilience in Africa?

From the newsletter

Green hydrogen is taking centre stage in North Africa’s urban development plans, following a $320 million guarantee from the EU and Germany. Funded through the European Fund for Sustainable Development Plus, the initiative supports green hydrogen production, storage and distribution, while advancing climate-resilient infrastructure. 

• By combining urban investment with green hydrogen support, the EU positions hydrogen not just as an export fuel but as a local solution for cleaner, more resilient African cities. 

• The guarantee de-risks the building of infrastructure, enabling private capital to enter fragile urban markets, a strategic move that empowers cities to adopt low-carbon energy systems and build resilient economies.

More details

• Launched in June 2021, the European Fund for Sustainable Development Plus (EFSD+) provides grants and guarantees to advance the EU’s global sustainability agenda. Its new $320million guarantee for North Africa—also extending to the Middle East—strives to promote urban resilience while creating jobs and promoting economic growth.

• “Green energy investments not only contribute to climate change mitigation, but also improve the quality of life of their citizens” Stefano Sannino, Director-General at the European Commission’s Directorate-General for the Middle East, North Africa and the Gulf (DG MENA) said.

• The potential impact extends far beyond fuel—green hydrogen is beginning to reshape the fabric of African cities. Green hydrogen is emerging as a critical enabler of sustainable cities—not only as a clean fuel for export and heavy industry, but as a practical solution to decarbonize urban systems. In North Africa, where cities are growing rapidly and climate risks are intensifying, integrating hydrogen into urban planning offers significant resilience and development benefits.

• One promising area is public transport. Green hydrogen-powered buses, trains, and municipal fleets can cut air pollution and greenhouse gas emissions while improving mobility in congested cities. Hydrogen fuel cells also offer a clean alternative for decentralised building power—especially in areas where diesel generators dominate or the grid is unreliable.

• In Cairo, Egypt is piloting hydrogen buses to reduce transport emissions. In Casablanca, Morocco plans to integrate green hydrogen into the city’s power mix, targeting municipal transport and emergency energy for critical infrastructure.

• Hydrogen can also enhance urban resilience by acting as a storage medium for renewable energy. As more cities adopt solar and wind, hydrogen enables them to store surplus electricity and deploy it when needed—during heatwaves, outages, or spikes in demand. This flexibility is crucial for cities vulnerable to climate stress.

• For instance, in Nouakchott, Mauritania, green hydrogen is being explored to stabilize the national grid and power desalination systems—two lifelines in a region facing water scarcity and unreliable energy. These examples show that with the right support, hydrogen can go beyond ambition and serve as a backbone of low-carbon, climate-smart urban life.

Our take

• By aligning hydrogen development with local needs, these initiatives signal a welcome shift: hydrogen is no longer just about pipelines and export—it’s about empowering African cities to leapfrog dirty infrastructure and become hubs of climate-smart innovation.

• Green hydrogen can serve African cities, not just international export markets. While Europe’s backing brings needed capital and legitimacy, real impact lies in using hydrogen to solve local problems—like transport emissions, power outages, and air pollution. Urban residents should see tangible benefits from these investments, not just hear promises of future exports.

• De-risking through guarantees is a valuable start, but it’s not enough without strong local ownership. Cities need a voice in shaping hydrogen strategies that reflect their realities—not just donor frameworks. Without deep municipal engagement and capacity-building, green hydrogen risks becoming another top-down solution with limited grassroots impact.