As countries accelerate efforts to move away from fossil fuels, green hydrogen (GH₂) is emerging as a key enabler of the clean energy transition. But what is it, and why is it attracting so much attention?

While most hydrogen is produced from fossil fuels, using renewable energy sources such as solar and wind to power the process results in ‘green’ hydrogen. This highly flammable but non-toxic gas produces only water vapour when used, making it a carbon-neutral alternative. It can be used to refine petroleum and make chemicals, metals and fertilisers, and is seen as a good alternative in hard-to-electrify sectors such as heavy industry, aviation and long-haul transportation.

Namibia and South Africa have sun and wind in abundance, making them prime locations to generate this clean fuel.

 In 2022, Namibia started positioning itself as a leader in Africa’s green hydrogen market after receiving US$45.3 million in funding from the German government for research, feasibility studies and pilot projects. According to the BBC, the Namibian government’s plan is to become a ‘green hydrogen superpower’.

While Namibia has moved to position itself as a continental leader, South Africa is advancing its own strategy. Government has committed to a clean-energy economy, with the Just Energy Transition Investment Plan (JET IP) setting out a map to reduce emissions, improve climate resilience and shift the country onto a more sustainable development path.

There is no doubt that Africa’s potential to produce green hydrogen for domestic and international use is huge, and both countries have made promising inroads into fulfilling this potential. High production costs – estimated at US$5–US$8 per kilogram, around five times that of fossil fuel-derived hydrogen – mean many proposed sites are still in the concept and feasibility phases, although several are progressing towards final investment decisions and construction.

Cleanergy Solutions Namibia’s Hydrogen Dune project in Walvis Bay, commissioned in 2024, is among the first to move beyond planning. Opened in September last year, it is a joint venture between Belgian clean energy company CMB Tech and Namibia’s Ohlthaver & List Group. The facility uses a solar-powered, off-grid electrolyser to produce GH₂ for transport and industrial use. It is already supplying fuel for dual-fuel trucks and tractors, with plans to expand to port equipment, locomotives, generators and small ships this year.

In December last year, the AfDB also approved a US$10 million loan to Hyphen Hydrogen Energy to support a green ammonia project valued at more than US$10 billion. The loan, sourced from the Sustainable Energy Fund for Africa, will support front-end engineering design studies for solar and wind generation, battery energy storage systems and electrolyser capacity and desalination infrastructure.

It is projected to produce 2 million tons of green ammonia annually for export. It will also avert annual emissions of 5 million tons of CO₂ while deploying 7.5 GW of renewable energy generation capacity. Moono Mupotola, AfDB country manager for Namibia and deputy director-general for Southern Africa, is upbeat about the investment. ‘This is about demonstrating Africa’s capacity to lead the global energy transition, create quality jobs for our youth and build prosperity while protecting our planet. Namibia is showing the world that Africa is not just participating in the green economy – we are defining it,’ he says.

The South African Department of Science, Technology and Innovation’s Hydrogen Society Roadmap, launched in 2021, targets 500 000 tons of GH₂ per year by 2030 and plans to deploy 10 GW of electrolysis capacity in the Northern Cape by 2030, expanding to 15 GW by 2040. Mining Decisions reported last year that the region is emerging as a green hydrogen and ammonia production hub. The Prieska Power Reserve project is one of several large-scale projects taking shape there. It plans to start producing green hydrogen and ammonia this year, with the aim of producing 500 000 tons of green ammonia by 2030.

Mining Weekly reports that the green hydrogen content will be generated by a 120 MW electrolyser powered by those magic ingredients of sun and wind. It also includes a 45 MW battery storage system to ensure continuous 24-hour operation. The focus of the project, supported by Germany’s KfW and South Africa’s Industrial Development Corporation, is on linking production with domestic and international markets.

The Coega Green Ammonia project in the Eastern Cape, led by Hive Hydrogen South Africa, plans to deploy a 1.2 GW electrolyser powered by 3.5 GW of renewable energy. Backed by US$20 million from the SA-H2 Fund, and projected to be worth ZAR105 billion-plus, the project is targeting financial close later this year, with commercial operations expected around 2029 and an annual output of roughly 1 million tons of green ammonia for export. It integrates the 1 430 MW Crossroads solar PV cluster, already completed. Partnerships with European nations have proved to be key to the progress of projects.

In October last year, Mining Weekly reported that European Commission president Ursula von der Leyen singled out Coega when she announced increased funding of close to EUR12 billion for the South Africa-European Union Just Energy Transition Partnership. ‘With it [Coega Green Ammonia project], South Africa is on its way to becoming a global shipping hub as green ammonia becomes a clean maritime fuel of choice, and with this investment comes an enormous opportunity. South Africa is not only transforming itself but it’s becoming a clean energy pioneer for the entire continent of Africa.’

The fact that South Africa hosts most of the world’s platinum group metals, another key asset for green hydrogen generation, makes it an even more ideal location to produce this invaluable fuel. ‘Renewable energy provides low-carbon power, green molecules decarbonise energy-intensive processes and mining supplies the critical raw materials required for both technologies,’ Shawn Modise, acting CEO of the Northern Cape Economic Development Agency, told Mining Decisions. ‘Systems transition research identifies this interdependence as essential for sustainable industrial development. Together, the glue that binds mining, renewable energy and green molecules is a shared objective of cost competitiveness, energy security and emissions reduction.’

While ventures of such a grand scale aren’t without their challenges, including high capital costs and the lack of technical expertise, both countries are finding ways to navigate them. One response has been investment in education and skills development. Namibians are trained in hydrogen technologies at the Cleanergy Solutions academy, while the University of the Witwatersrand recently announced that it will soon host a working hydrogen plant. Funded by Air Liquide, and in partnership with the Localisation Support Fund, the Wits-South Africa Hydrogen Localisation Initiative (Wits-SAHLI) will build a modular ZAR100 million pilot hydrogen plant that will serve as a hydrogen production, teaching, research and testing facility, and is expected to be operational in 2028.

Rodney Genga, Wits-SAHLI design team lead, says it will change how students learn and how research is done. ‘Our students will learn in a real operating environment. They will see how hydrogen is produced, stored and used at scale. That kind of exposure builds confidence and skills that South Africa urgently needs.’

It marks another step towards a cleaner energy future – and a leading role for Africa in the global green hydrogen economy.

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