IMO Net-Zero Framework: What it means for Africa Green Hydrogen Alliance countries
Summary
Africa has enormous potential to produce green hydrogen and its derivatives, but without demand, much of this pipeline will struggle to move forward. GH2’s analysis of 104 projects across Africa Green Hydrogen Alliance countries finds that around 50% are already linked to shipping or well positioned to supply green maritime fuels, yet only three have reached final investment decision, construction or operations. The IMO Net-Zero Framework could provide the clear and credible global demand signal needed to secure offtake and unlock investment. If adopted as agreed in 2025, it could help AGHA countries reap the wider benefits of shipping decarbonisation, supporting new industries, jobs and skills while strengthening energy and food security.
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Key Takeaways
- GH2 estimates that 50% of all green hydrogen projects in member countries of the Africa Green Hydrogen Alliance (AGHA) explicitly or likely intend to supply green fuels to the maritime sector. The decarbonisation of the shipping industry is therefore critical to enable green hydrogen production.
- Despite their strong potential for local value creation, most green hydrogen projects in AGHA countries are stalling before final investment decision (FID) due to the lack of demand certainty, which remains the main barrier preventing their progress.
- The International Maritime Organization’s Net Zero Framework (IMO NZF), by providing a clear and credible signal to the shipping industry, can stimulate demand for green hydrogen-based electro fuels and give projects in AGHA countries the certainty they need to secure offtake and advance towards FID.
- The NZF as approved in 2025 is the most balanced way forward: it is a hard-fought compromise that retains an economic element, which is critical to support AGHA countries’ participation in emerging green shipping value chains.
- AGHA countries are uniquely positioned to benefit from green fuel bunkering and production given their strong renewable energy potential. Supporting the IMO NZF “as is” would help AGHA countries reap the benefits of shipping decarbonisation by providing the support and certainty needed for green hydrogen projects to go ahead.