US EditionGreen Hydrogen From Africa Much More Costly than Previously Assumed
- In 2025, researchers from the Technical University of Munich examined more than 10,000 sites across Africa to evaluate the potential for green hydrogen production intended for export to Europe.
- High financing costs driven by socio-political risks and current interest rates made producing green hydrogen in Africa more expensive than earlier estimates indicated.
- The study found only 2% of locations could compete economically for export, with many projects still in planning and cost estimates imprecise without policy support.
- Researchers estimated hydrogen prices near €5/kg if operators bear full risks, dropping to about €3/kg with European price and offtake guarantees, involving fewer than 200 competitive sites.
- The findings suggest policy instruments and long-term agreements are essential for viable trade and local benefits, as unsupported projects risk being cost-ineffective and lacking value for African communities.
21 Articles
21 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…
Environmentally friendly hydrogen is needed for the energy transition in Germany. The energy source is considered as a key component. However, there is a lack of production capacities and import sources. Hopeful Africa is shaken. This contribution Energy transition Hydrogen import from Africa is becoming a cost trap has been published on Young Freedom.
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