Mapping the cost competitiveness of African green hydrogen imports to Europe

Overview of African green hydrogen projects by country and end use

Figure: Overview of African green hydrogen projects by country and end use

Source: Mapping the cost competitiveness of African green hydrogen imports to Europe

πŸ“ƒ Article “Mapping the cost competitiveness of African green hydrogen imports to Europe” was published by researchers of the Technical University of Munich (TUM), the University of Oxford and ETH Zurich.

βœ… The Key Findings:

πŸ“ŒThe research covers:

  • all projects planned to be operational by 2030.
  • the analysis of African countries with port access.
  • 31 countries, except Somalia and Libya, were excluded due to political instability and small island states.

πŸ“Œ Overview of African green hydrogen projects:

  • 34 projects are found across 7 countries;
  • 89% of projects are either at concept or feasibility stages;
  • 2 of the projects have reached a financial investment decision and are under construction, and only one small-scale project (that is, 3.5 MW) in South Africa is operational;
  • From 3.5 MW to 6.9 GW is planned project sizes;
  • 74% of planned electrolyser capacity is intended for ammonia (NH3) production

πŸ“Œ Levelized cost of hydrogen (LCOH):

  • In a high interest scenarios 1 and 2, least costs for green H2 exported from Africa are €4.9 kgH2βˆ’1 without policy support and €3.8 kgH2βˆ’1 when fully de-risked by European governments.
  • In a low interest scenarios, the costs come down to €4.2 kgH2βˆ’1 and €3.2 kgH2βˆ’1, respectively.
  • no location competitive with the first round of auction results by the European Hydrogen Bank, which yielded a lowest bid of €2.8 kgH2βˆ’1 in Spain.

πŸ“Œ Challenges:

  • many low-cost locations are in regions that are either politically contested or encounter relatively regular flares of armed conflict.
  • the size of the planned investments relative to the GDP raises questions on feasibility. This situation is concerning as many African countries face massive foreign debt burdens.
  • whereas wind resources are critical to low-cost green H2 production, local expertise to install this wind capacity may be insufficient.
  • some low-cost locations, such as those near the Red Sea or the river Nile in Egypt, may also face challenges of water insecurity potentially disrupting consistent production.

➑️ Source: Egli, F., Schneider, F., Leonard, A. et al. Mapping the cost competitiveness of African green hydrogen imports to Europe. Nat Energy (2025).