Africa has many green hydrogen projects planned, but few are moving to FID. (Image source: Adobe Stock)

Africa has dozens of green hydrogen projects planned, but many still lack financing, firm offtake deals and the infrastructure needed to reach FID, according to the Energy Industries Council’s latest Africa Hydrogen Report

Hydrogen realities are hitting Africa’s export push, with a lack of firm offtake agreements, insufficient pipeline infrastructure and a nascent local supply chain raising doubts over how quickly projects can move from plans to final investment decisions, the report says.

According to EICDataStream, a database of global energy projects in progress, there are 78 green hydrogen projects proposed across the continent, led by Egypt, Morocco and South Africa. Many African counties are beginning to position themselves as future suppliers of green hydrogen and its derivatives, such as ammonia, aiming to turn large solar and wind resources into exports for Asia and Europe. The governments within these countries are backing this with national strategies, energy agreements and major project announcements across these technologies even eyeing up the potential for green steel.

But the report shows the African hydrogen market still has a long way to go, with only two small-scale green hydrogen projects in operation, both in Namibia, running at a combined capacity of 17 megawatts.
The report puts Africa’s proposed electrolyser capacity at about 38 gigawatts, with around US$194bn of planned investment. Europe, by comparison, has more capacity planned but lower total capital costs ($166bn). This is because African project CAPEX includes major supporting infrastructure — including pipelines, power generation and desalination needed to secure water — which remains limited and needs significant buildout.

Project concentration is also an issue. Egypt, Morocco and South Africa account for about 80% of Africa’s proposed hydrogen capital spending. Egypt alone represents close to half of the continent’s total, with US$88.5bn of planned investment, backed by a national low-carbon hydrogen strategy.

The report shows that North Africa’s hydrogen ambition is focused on exporting to Europe, while sub-Saharan Africa’s projects are dedicated to ammonia production and shipping to Asian markets such as Japan and South Korea.

The report stresses that many of these projects are still stifled by a lack of offtake agreements. “Offtake agreements are a critical factor in transitioning projects from pre-FID to construction,” according to the report’s authors, Jack Boggis, EIC energy analyst, and Chris Shirley, EIC market intelligence manager (Supply Chain). “Without revenue certainty, even well-located projects face delays to say the least.”
A key report recommendation is to reduce the reliance on mega-projects.

Supply chain capacity is another constraint. Projects will rely heavily on imported equipment, given the lack of electrolyser manufacturers currently operating in Africa. However Egypt has set a 20% local content requirement tied to incentives and limiting the share of foreign labour on projects.

Rebecca Groundwater, EIC’s global head of external affairs, said Africa needs a clearer policy direction to move hydrogen projects into FID. “Governments need to stick to the basics investors need,” she said. “Set clear rules, keep policy stable, speed up permits, and get the basics in place on grid and water. Use finance tools that share risk and bring in development lenders where needed while costs are still high. And match project timing to what export buyers can take. Without that, a lot of this won’t go beyond concept.”

To view the full report, please visit: https://www.the-eic.com/MediaCentre/Publications/Reports

NNPC is planning to sell at least 25% of the equity in select oil and gas fields.

The Nigerian National Petroleum Company Limited (NNPCL) has issued bid calls for investors across the world with an aim to seek partners to share stakes with in some of its assets

These assets besides, the Nigerian operator already shares several assets in the region with international oil companies, including Shell, Chevron, Eni, and TotalEnergies. 

Earlier, there had been talks of the NNPC planning to sell at least 25% of the equity it holds in select oil and gas fields. The company is thus realigning its portfolio optimisation strategy by considering divestments as well as stake reductions.

Last date for online registration for interested bidders is 10 January, which will be followed by pre-screening and qualified firms will gain access to a secure virtual data room.

The bidding process will consider prequalification on the basis of technical and financial capacity, followed by document evaluation, negotiations and regulatory approvals.

Nigeria is aiming to boost production capacity and attract investments while targeting incremental growth through production from marginal onshore fields vacated by international oil companies. 

NNPC has been consistently maintining its strong growth momentum, with 2025 reporting a profit of over US$3.6bn. The company has put in place a US$60bn investment pipeline for advancing investments across upstream operations and gas infrastructure. 

“We are positioning NNPC Limited as a globally competitive energy company capable of delivering sustainable returns while powering the future of Nigeria and Africa,” said Bashir Bayo Ojulari, Group chief executive officer. 

Angola is ready for investors.

Shell is considering an agreement with Chevron, whereby the former might acquire stakes in two undeveloped offshore blocks in ultra-deep waters offshore Angola

The Angolan administration's increasing focus on making regulatory reforms to advance a investors-friendly energy sector is bearing fruit as European oil majors are willing to spend billions in sub-Saharan Africa's second-largest crude oil producer after Nigeria. The country aims to maintain production levels above 1 million barrels per day.

“We have signed a farm-in agreement with Cabinda Gulf Oil Company Ltd - a subsidiary of Chevron - to obtain a 35% interest in Block 49 and 50 offshore Angola. The deal has received governmental approval and is pending final legal requirements," Shell said in a statement to Reuters. 

This was also confirmed by Chevron as the partners await relevant regulatory approvals.

"New exploration, such as in Angola, is important to sustaining production into the 2030s," said Shell, which aims to boost gas production by 1% through 2030 while maintaining a steady oil output. 

Angola is ready for investors as it is set to open a licensing round this year, supported by valuable geological insights from Viridien. The earth data company has recently announced a multi-client seismic reimaging programme over Angola’s highly prospective offshore Block 22.

The 4,300 sq km high-end data set will bring valuable insight into underexplored structures along the Atlantic Hinge zone, following the same trend as the proven Cameia and Golfinho fields.

2025 has recorded the highest average production rate in a decade.

With an aim to advance transparency, the National Oil Corporation (NOC) of Libya has released its average daily crude oil production and total (cumulative) production figures for the past 10 years 

According to the table released, 2025 has recorded the highest average production rate in comparison to the last decade, at 1.374 million barrels per day. Total crude oil production for the year reached 501 million barrels, marking a posititve shift in the NOC’s strategy to boost crude oil production rates. The NOC acknowledged the role of the employees at all production sites.

Majors have showed increased interests in the region all throughout 2025. TotalEnergies had kickstarted work on the Waha and Sharara fields, while also exploring opportunities in the Sirte and Murzuq basins. Speaking about the region, the company's senior vice president for the Middle East and North Africa, Julien Pouget, said, “With 40% of Africa’s reserves, Libya remains largely untapped.” 

Repsol, too, has resumed drilling in Murzuq Basin onshore Libya. Lauding the region's efforts in fighting natural field decline and encouraging exploration, Repsol's executive managing director, exploration & production, Francisco Gea showed faith in achieving the country's production target of two million barrels per day. 

Eni is set to launch three exploration plays in the region – shallow, deepwater and ultra-deep offshore, and is also deeply invested in Libyan gas with the US$10bn Greenstream pipeline and a CO2 capture and storage plant in Mellitah.