Arab Finance: The African Development Bank Group (AfDB) has selected four green hydrogen and derivatives projects in Egypt, Morocco, Namibia, and South Africa to receive reimbursable grants totaling $20 million, subject to approval by the bank’s Board of Directors, as per a statement.

The Sustainable Energy Fund for Africa (SEFA) will provide the financing to advance the projects toward investment readiness. The selected developments cover sustainable marine and aviation fuels in Egypt, Morocco, and Namibia, as well as low-carbon iron production in South Africa.

Egypt’s Project Ra, sponsored by DAI Infrastruktur GmbH, is set to receive $3.55 million, while Morocco’s Guelmim Green Hydrogen Valley, sponsored by Nareva Holding, was allocated $5.28 million. Namibia’s Hyphen project, sponsored by Hyphen Hydrogen Energy (Pty) Ltd, is expected to receive $5.93 million.

The remaining $5.24 million was allocated to the Saldanha Hydrogen Direct Reduced Iron (DRI) project in South Africa, sponsored by Enertrag SE in collaboration with ArcelorMittal South Africa.

Together, the four projects represent an estimated $23 billion in investment. Their planned infrastructure includes the equivalent of 20 gigawatts (GW) of solar and wind generation capacity, 7 GW of electrolyzer capacity, and 2,950 megawatt-hours of battery energy storage.

The projects were chosen through a call for proposals conducted under the Africa Green Hydrogen Programme (AGHP) between April 10 and May 11, 2026. Kevin Kariuki, the bank’s vice president for power, energy, climate change, and green growth, disclosed the results during the Africa Green Hydrogen Summit 2026 in Cape Town.

Through the program, the bank aims to attract private investment into hydrogen infrastructure by strengthening projects’ commercial viability and encouraging foreign direct investment. Green hydrogen and its derivatives could also support the storage of solar and wind power while reducing reliance on fossil fuels and limiting carbon emissions.

“Africa’s exceptional renewable energy resources give the continent a unique opportunity to become a competitive player in the emerging global green hydrogen and derivatives market,” said Daniel Schroth, Bank Group Director for Renewable and Energy Efficiency. “Through the SEFA-funded AGHP, the African Development Bank is helping to move high-potential projects closer to investment readiness.”

Beyond energy production, the program is intended to support industrial development and export revenue while facilitating the transfer of technology, knowledge, and skills. Surplus generation could also improve access to electricity and desalinated drinking water, while the projects are expected to create employment opportunities.

For Egypt’s Project Ra, the selection represents another step toward planned green ammonia production in the Suez Canal corridor.

“Being selected under the Africa Green Hydrogen Programme is a strong recognition of the work our team and partners have put into Project Ra over the past several years,” said Ioannis Papassavvas, CEO of DAI Infrastruktur. “We thank the African Development Bank and SEFA for this support and look forward to working closely with the Bank as Project Ra moves toward delivering green ammonia to European and global markets from the heart of the Suez Canal corridor.”