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What it takes to get a hydrogen project to a financial decision

Dear subscriber,

Starting is easier than finishing. Africa’s green hydrogen pipeline continues to grow, but turning announced projects into investments requires more than plans. South Africa’s latest approach offers a closer look at what happens when projects are assessed against practical conditions, and what that could mean for other hydrogen markets on the continent.

Mercy Maina – Editor 

Many green hydrogen projects in Africa are stuck in ambitious pipelines. South Africa is now accelerating the shift to investment with its recently launched Green Hydrogen Deal Book, which identifies six priority projects from a broader pipeline and outlines the conditions needed to reach a final investment decision (FID).

  • Bankability remains a key challenge for Africa’s green hydrogen pipeline. At least five projects have reached FID, while at least 122 projects have been announced, according to the Hydrogen Rising project tracker.

  • South Africa’s approach offers a role model for other hydrogen projects in the region, where announcements have yet to translate into investment. 

  • Our take: The route to FID is increasingly a question of project architecture… Read more (2 min)

Africa's green hydrogen market needs both smaller and large-scale projects, says energy expert Hillary Chesebe. He argues that smaller projects offer distinct advantages over larger ones, but their size also creates constraints that could limit their ability to scale, making coexistence between the two models likely.

  • “I don't think one will dominate the other. We will have both of them progressing at the same time, simply because of the way the market is. Those that prefer to have small-scale projects and have the infrastructure can use that, while those that do not have that kind of infrastructure can continue to get their hydrogen from larger-scale projects. Both models will continue to coexist,” he says.

  • Mr Chesebe is a renewable energy expert with interests in green hydrogen, the green transition and climate finance. In green hydrogen, he has provided energy advisory services for on-site project development targeting industrial off-takers and was involved in the development of Kenya's second green ammonia project, a captive plant that reached financial close in December 2025.

  • Find the full conversation… here (2 min)

Inevitably, new hydrogen projects create demand for equipment, water and other resources, opening opportunities to build circularity into their development. From making better use of scarce water resources to finding value in electrolysis by-products, these approaches could generate revenue beyond hydrogen.

  • Green hydrogen production for export from Africa could reach around 1 million tonnes a year by 2030, rising to 11 million tonnes by 2050, according to the Hydrogen Council. 

  • As a resource-intensive sector, green hydrogen development could benefit from circular economy principles to reduce the resources needed to support its projected growth.

  • Our take: The long development timelines of hydrogen projects give existing businesses an earlier entry point than new ventures… Read more (2 min)

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Source: Germany Energy Solutions

Kenya’s Nyeri Hill Farm green ammonia project breaks ground

Events

🤝 Network at the 8th RD20 Conference in South Africa (Oct 19)

👭 Participate in the Women in Renewable Energy Conference in Kenya (Oct 21)

🤼 Interact with hydrogen peers at ICERA 2026 in Ethiopia (Oct 27)

✍️ Register for the Renewable Energy Forum Africa (REFA) in Nigeria (Nov 25)

 Jobs

🧑🏿‍💼 Work as a PtX & Advanced Biofuels Consultant at RSB (South Africa)

👩🏽‍💼 Be the next Executive Assistant at Phelan Green Energy (South Africa)

👩🏻‍💼 Apply for the Lecturer role at Stellenbosch University (South Africa)

🧕🏽 Serve as a Functional Development Engineer - Hydrogen Systems at AVL (Morocco)

👷🏿 Join AVL as a Senior Component Engineer-Hydrogen Systems (Morocco)

Various 

💰 AfDB to grant $20m for hydrogen projects in Egypt, Morocco, Namibia & S. Africa 

💱 Namibian Daures project secures $3.6 million funding to scale fertiliser production

🔊 GIZ South Africa announces PtX Grant Competition 

🏗️ Swiss developer H2 Global Energy to develop two new projects in Morocco

📈 New bets on green hydrogen to gain scale

✅ Phelan Green takes FID on South Africa's first eSAF project

✍️ Mauritania’s Project Aman signs agreement towards FID

💱 Team Europe launches €57.8m for S. Africa’s hydrogen and critical minerals sectors

🟢 Green fertilisers emerge as a new industrial opportunity for MENA and Africa

🤝 Explore South Africa’s National Green Hydrogen Deal Book

Seen on LinkedIn 

Alistair McMaster, Director of Sustainable Energy at South Africa’s Eastern Cape Department of Economic Development, says, “Green hydrogen projects become more viable when the necessary infrastructure, regulatory frameworks, and institutional arrangements function as an integrated and well-sequenced system.”