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Africa’s Green Hydrogen Potential Abundant Sun and Wind Alone Won’t Beat Europe’s Costs
['Anela Dokso']
NEWS – Energy News
By 2030, Africa could emerge as a key supplier of green hydrogen to Europe—but only if European policy interventions address the continent’s prohibitive financing conditions.
According to the study Mapping the Cost Competitiveness of African Green Hydrogen Imports to Europe (Nature Energy, June 2025), Africa’s renewable potential alone won’t make its hydrogen cheap.
Without substantial de-risking, green hydrogen shipped as ammonia is projected to cost between €4.2 and €4.9 per kg—well above Europe’s own projected domestic costs of €3–5 per kg H₂ by 2030.
The average cost of capital (COC) for commercial green hydrogen projects in Africa stands at 15.5%, compared with 6–8% typical in Europe.
Without them, Africa’s abundant wind and sun may remain stranded assets rather than engines of a transcontinental green fuel trade.