Hydrogen from North Africa: Potential in Egypt, Tunisia & Co.

Egypt: Hydrogen Hub on the Nile 

Egypt has set clear objectives: by 2040, North Africa's most populous country aims to produce 9.2 million tons of green hydrogen annually, serving approximately eight percent of the global market. To remain internationally competitive, the Cairo government is targeting a production cost of just $1.7 per kilogram – an ambitious goal that appears realistic given excellent site conditions with over 3,500 hours of sunshine annually and extensive unused desert areas. 

The Egyptian government is strategically creating incentives for investors. Since early 2024, new hydrogen promotion legislation has been in effect, granting qualified projects tax refunds of up to 55 percent and exempting them from value-added tax. Additionally, companies benefit from streamlined approval processes and long-term land use rights in special economic zones. These regulatory frameworks have already shown results: over 30 hydrogen projects with total investment volumes exceeding $100 billion are currently in various planning stages. 

Breakthrough Through H2Global: Fertiglobe Takes the Lead 

Proof that Egypt's hydrogen ambitions are more than wishful thinking came with success in the first H2Global auction. The Emirati-Dutch consortium Fertiglobe secured the contract in July 2024, receiving nearly €400 million of the total €900 million in funding. From 2027, the company will deliver up to 80,000 tons of green ammonia annually from its facility in Ain Sokhna on the Red Sea to Europe. 

The agreed price of €811 per ton of ammonia – equivalent to less than €4.50 per kilogram of hydrogen – significantly undercuts current market estimates, positioning Egypt as one of the world's most cost-effective producers. The 100 MW electrolysis plant, located approximately 150 kilometers from Cairo, is expected to generate up to 15,000 tons of green hydrogen annually for ammonia production. Germany's planned imports represent more than ten percent of annual German ammonia production. 

Pipeline of Mega-Projects 

The Fertiglobe project is merely the beginning. In March 2025, the Egyptian government signed a cooperation agreement with French energy provider EDF and Emirati company Zero Waste for a €7 billion project near the Gulf of Suez. The facility at Ras Shukeir is designed to produce more than one million tons of green ammonia annually – primarily as fuel for ships passing through the Suez Canal. The consortium will construct its own wind and solar installations across 420 square kilometers and invest additionally in a 400-meter ship docking facility and a seawater desalination plant. 

Australian conglomerate Fortescue Future Industries (FFI) is pursuing even larger dimensions. With exclusive land rights secured in 2022 for a 7.6-gigawatt hydrogen project, powered by 9.2 gigawatts of wind and solar capacity, this could become one of the world's largest integrated green hydrogen production centers. These projects benefit from Egypt's advantageous geographic position as a bridge between Europe, Africa, and the Middle East, as well as the established shipping route through the Suez Canal. 

With the launch of the second H2Global auction round in February 2025 – this time with a volume of €2.5 billion – Egypt's role as a hydrogen supplier could expand further. The first ammonia deliveries expected in 2027 will serve as a litmus test for the long-term energy partnership between Germany and the country on the Nile. 

Tunisia 

Tunisia is also positioning itself as a hydrogen corridor between North Africa and Europe. The national hydrogen strategy published in May 2024 envisions production of 8.3 million tons of green hydrogen by 2050 – three-quarters of which, approximately 6 to 6.3 million tons, would flow directly to the EU via pipeline. The plan requires investments of at least €120 billion in generation, networks, and export infrastructure. 

H2 Notos: Project with Austrian Participation 

The concrete nature of Tunisia's hydrogen plans became evident in June 2024 when Austria's largest electricity supplier, Verbund AG, signed a memorandum of understanding with TE H2 – a joint venture between TotalEnergies and EREN Groupe – for the "H2 Notos" project. On Tunisia's Mediterranean coast, electrolyzers are planned to produce 200,000 tons of green hydrogen annually in the initial phase. The expansion potential is considerable: in southern Tunisia, capacity could potentially increase to one million tons per year. 

Verbund CEO Michael Strugl emphasized during the signing that Tunisia is an "essential component of our hydrogen plans" and a "particularly important upstream region in terms of scalability and competitiveness." The consortium plans projects "in the GW range" and covers the entire value chain from power generation to hydrogen production. Tunisian Energy Minister Fatma Thabet Chiboub described the agreement as "historic" and a "strategic turning point" for her country as an investment destination for renewable energy. 

Pipeline Corridor as Trump Card 

Tunisia's greatest advantage is its geographic proximity to Europe and integration into the planned SoutH2 corridor, which from approximately 2030 is intended to transport hydrogen from North Africa via Italy and Austria to Germany. In early 2025, the participating countries reaffirmed their deepened cooperation for this southern hydrogen corridor – an important signal for the feasibility of the pipeline plans. 

Beyond H2 Notos, additional international consortiums are developing projects in Tunisia. ACWA Power is planning a multi-stage initiative with up to 600,000 tons annually, while players such as Hydrogen of France, DEME Hyport, and Savannah Energy primarily want to combine large-scale solar and wind farms with electrolysis facilities in the country's sunny south. With support from international development organizations, Tunisia's Energy Ministry is simultaneously working on establishing the necessary regulatory framework, while public debate about water usage, site selection, and local value creation aims to ensure social acceptance of the hydrogen strategy. 

Algeria 

Algeria is the second North African state participating in the SoutH2 corridor. As Africa's largest natural gas exporter and Europe's long-standing energy supplier, the country brings excellent prerequisites for the hydrogen market: established pipelines to Italy and Spain, decades of experience in energy trading, and vast areas with solar yields among the world's highest. Algeria's hydrogen strategy also follows a regional pattern with staged development: short-term pilot and demonstration projects, medium-term exports to the EU, and long-term industrial value creation domestically. 

Algeria's seriousness about its hydrogen ambitions was demonstrated in February 2024 when then Federal Economics Minister Robert Habeck signed a memorandum of understanding in Algiers to establish a "bilateral hydrogen task force" during his visit. Germany intended to support the North African country in building hydrogen production and infrastructure, including a pilot plant for green hydrogen. Habeck emphasized the "close energy partnership" existing since 2015 and Germany's readiness to provide know-how and technical expertise. Algeria's ambitious goal: by 2040, the country aims to supply up to 10 percent of the EU's total hydrogen demand. 

Concrete Partnerships Taking Shape 

In October 2024, Leipzig-based VNG AG signed a memorandum of understanding in Oran with five European and North African energy companies for large-scale hydrogen imports. The partners – including Algerian energy giants Sonatrach and Sonelgaz, Italian grid operator SNAM, and Austria's Verbund – are jointly examining large-scale green hydrogen production in Algeria and its export via the South H2 Corridor to Germany. 

VNG Executive Board member Hans-Joachim Polk emphasized the significance of this partnership for German energy security. The Leipzig company, which already concluded a supply contract for Algerian pipeline gas in early 2024, is contributing to the necessary diversification of energy imports. The planned technical and economic feasibility studies will examine the entire value chain from production in Algeria to transport to Central Europe. 

Morocco: Kingdom with Power-to-X Ambitions 

Morocco is also positioning itself as a future major producer of green hydrogen and its derivatives through the "L'Offre Maroc hydrogène vert" initiative launched in 2024. Under the leadership of King Mohammed VI, the kingdom aims to cover more than 4 percent of global hydrogen demand by 2030. The strategy, officially announced by the head of government through a circular ("Circulaire du Chef du Gouvernement"), encompasses integrated projects along the entire value chain – from renewable power generation through electrolysis to the production of ammonia, methanol, and synthetic fuels. 

The government has already identified one million hectares of public land with high potential for hydrogen projects. In the first phase, 300,000 hectares will be made available in parcels of 10,000 to 30,000 hectares – a scale that enables gigawatt projects. 

The German-Moroccan partnership is also taking concrete form. The Federal Ministry for Economic Cooperation and Development (BMZ) is investing €30 million through the PtX Development Fund in a project in the Jorf Lasfar industrial zone, approximately 100 kilometers south of Casablanca. The funding goes to project development company Hydrojeel of the Moroccan OCP Group, one of the world's largest fertilizer producers. 

The facility, powered by wind and solar energy, is expected to produce up to 100,000 tons of green ammonia annually by the end of 2026, saving approximately 300,000 tons of CO₂. Long-term plans include capacity expansion to three million tons. The project is part of the German-Moroccan Alliance for Climate and Energy. 

To achieve ambitious goals, Morocco is massively expanding its infrastructure. Beyond continuous expansion of wind and solar capacity, transitional projects such as LNG terminals and gas power plants are being developed for grid stabilization during the hydrogen industry's ramp-up phase. Ports are being prepared for ammonia exports, while large-scale seawater desalination plants will meet the water demand for electrolysis. 

Conclusion: North Africa's Common Path to Hydrogen Hub 

The four Maghreb states share more than their geographic location: they all possess exceptional solar irradiation, extensive unused land, and – with the exception of Morocco – established energy export relationships with Europe. All countries have also published or refined national hydrogen strategies in 2023 and 2024, targeting production volumes in the millions of tons. The objectives are remarkably similar: Egypt targets 9.2 million tons by 2040 and Tunisia 8.3 million tons by 2050, while Algeria aims to cover 10 percent of EU demand and Morocco even 4 percent of global demand. 

Also remarkable is the convergence in transport solutions: all primarily rely on ammonia as an export medium for ship transport, while simultaneously working on the SoutH2 corridor – a pipeline vision intended to connect Algeria, Tunisia, Italy, and Austria all the way to Germany. European hydrogen strategies play a catalytic role here: with Egypt (Fertiglobe/H2Global), Tunisia (Verbund/H2 Notos), Algeria (VNG partnership), and Morocco (Jorf Lasfar reference plant), all four states have already signed offtake agreements or cooperation projects with German or European partners. 

Common Challenges 

The hurdles on the path to becoming a hydrogen hub are similarly shared. Water scarcity in the region requires expensive seawater desalination plants everywhere – a cost factor that will influence competitiveness. All four countries grapple with balancing lucrative exports and building local value chains. Public debates revolve around the same issues: fair distribution of revenues, creation of local jobs, and ecological sustainability. 

From an infrastructure perspective, all face the challenge of managing massive investments in power grids, ports, and transport routes – Tunisia alone calculates €120 billion by 2050, while Egypt's pipeline encompasses projects worth over $100 billion. Financing at competitive capital costs and certification according to EU standards for "green" hydrogen are additional common hurdles. 

Libya: The Missing Puzzle Piece 

Notably absent from this North African hydrogen alliance is Libya. The country theoretically possesses similarly favorable conditions as its neighbors: intense solar irradiation, vast desert areas, a long history as an energy exporter, and existing oil and gas infrastructure. However, the civil war ongoing since 2011 with varying intensity and political instability with competing governments have disconnected the country from hydrogen development. While neighboring states publish strategies and sign billion-dollar projects, reliable information about hydrogen plans from Libya is lacking. The country remains a blank spot on the hydrogen map – a sleeping giant with enormous potential whose awakening could once again change the regional dynamics. 

Outlook: North Africa as Europe's Energy Partner 

North Africa is slowly but surely developing into Europe's strategic hydrogen partner. If North African states succeed in implementing their ambitious plans while ensuring social and ecological sustainability, the region could indeed cover a substantial portion of European hydrogen demand by 2040.  

The wire Middle East Africa in Cairo offers the perfect opportunity to learn more about hydrogen projects in North Africa and their business potential. As the leading trade fair for the wire, cable, and tube industry in the region, it brings together precisely those sectors essential for building hydrogen infrastructure – from electrolyzers through pipelines to storage systems. With Egypt as the host country, the fair provides direct access to one of Africa's most dynamic hydrogen markets. Take advantage of the opportunity to exchange with local and international players in the emerging hydrogen economy. Find more information about the fair at: https://www.wire-mea.com/