US Edition
Green Hydrogen From Africa Much More Costly than Previously Assumed
- A 2025 study from the Technical University of Munich found that the costs associated with generating green hydrogen in African countries for shipment to European markets are considerably higher than earlier estimates suggested.
- This higher cost results from socio-political risks and financing costs varying widely by country, with interest rates possibly reaching 27%, much higher than earlier models assumed.
- The study analyzed over 10,000 African locations and found only about 2% could produce green hydrogen competitively, mainly in coastal countries like Algeria and Morocco, under conditions including policy guarantees.
- Operators bearing all investment risks would face hydrogen prices near €5/kg, but European government price and offtake guarantees could reduce prices to roughly €3/kg by 2030, though competition remains tough.
- The study stresses long-term stable agreements and meaningful political support are critical to avoid non-viable projects and ensure local benefits from green hydrogen production in Africa.
22 Articles
22 Articles
Hydrogen from Africa produced by solar and wind power has long been considered a favourable solution to Europe's energy problem. However, a new study warns: without guarantees, the projects are not competitive. Among other things, political risks increase costs.
African green hydrogen ‘prohibitively expensive’ for Europe: Report
The NewsHydrogen exports from Africa to Europe will remain “prohibitively expensive” without policy interventions, a new study suggested. The fuel known as “green” hydrogen — made by splitting hydrogen out of water molecules using renewable electricity — has drawn much interest globally as a way to decarbonize heavy industries that are hard to electrify. As countries assess the most economically viable places from which to procure the fuel, some…
Mapping the cost competitiveness of African green hydrogen imports to Europe
Governments in many European countries have high hopes for cheap green hydrogen (H2) from Africa to decarbonize hard-to-abate sectors. Using geospatial levelized cost models, this study evaluates the economic feasibility of exporting green H2 in the form of ammonia from Africa to Europe under four realistic financing scenarios by 2030. Our findings suggest that without European policy interventions, green H2 from Africa remains prohibitively exp…
Hydrogen’s Chicken-and-Egg Problem Persists as Buyers Hesitate
The conversation about low-carbon hydrogen continued last week at the annual World Utilities Congress, hosted by the multinational energy and water company TAQA in Abu Dhabi. While the hoped-for future trade between Europe and the Middle East and North Africa (MENA) remained in focus, a shift in emphasis appeared. While national goals look increasingly dubious, progress is occurring in specific industry sectors guided by international agreements…
Coverage Details
Bias Distribution
- 60% of the sources are Center
To view factuality data please Upgrade to Premium
