As Africa seeks to meet rising energy demand while cutting emissions, its energy transition is taking a pragmatic, multi-faceted approach. Grounded in real-world constraints – from financing to reliability – the continent is combining green hydrogen, renewables, natural gas, electrification and targeted investment to lower carbon intensity without slowing development.
Green Hydrogen Gains Momentum
Green hydrogen is increasingly recognized as a practical decarbonization tool, particularly in refining, where it can replace grey hydrogen used in hydrotreating and hydrocracking. This allows operators to reduce emissions while maintaining essential refinery operations. The HySHiFT project led by Sasol demonstrates this application, integrating green hydrogen into Fischer-Tropsch facilities to produce sustainable aviation fuel via a 200 MW electrolyzer at its Secunda plant.
Governments are also laying the groundwork to scale green hydrogen beyond domestic use. In January 2025, ministers from Algeria, Tunisia, Austria, Germany and Italy formalized a declaration advancing the 3,300-km SoutH2 Corridor, positioning Algeria as a key supplier to Europe. Angola is pursuing export-focused green hydrogen as well; Sonangol has confirmed the country’s first green hydrogen project, expected to produce 400,000 tons of hydrogen annually from 2027, supporting the country’s goal of reaching 70% renewable capacity by 2035.
Renewables at the Asset Level
Renewable energy is increasingly integrated directly into upstream operations, reducing reliance on diesel and minimizing flaring. Hybrid power systems combining renewables and gas help operators cut Scope 1 and Scope 2 emissions while improving reliability. At Uganda’s Tilenga oil field, associated gas separated at the central processing facility is used to generate the electricity needed for processing operations, reducing flaring and external power dependence.
Natural Gas as a Transition Enabler
Natural gas remains a central pillar of Africa’s decarbonization strategy, particularly as a replacement for diesel or oil in power generation. Switching to gas turbines, often combined with renewable power, reduces emissions at compressor stations and production facilities. In Nigeria, a dedicated upstream facility is being developed to supply gas from the Iseni field to the Dangote Fertilizer and Petrochemical Plant – an initiative aligned with the government’s “Decade of Gas” strategy to strengthen domestic industrial energy supply.
Gas is also being deployed at the system level through flare reduction and commercialization programs. In December 2025, the Nigerian Upstream Petroleum Regulatory Commission issued permits to 28 companies under the Nigerian Gas Flare Commercialization Program, converting flared gas into a commercial resource. The initiative is expected to cut 6 million tons of emissions per year and create up to 100,000 jobs, turning an environmental liability into an economic opportunity.
Technology Driving Lower-Carbon Operations
Innovative technologies and low-emission design are shaping Africa’s energy transition. Carbon capture, utilization and storage (CCUS) is gaining traction as a way to reduce emissions from large gas developments while maintaining production. In Libya, Eni and the National Oil Corporation are advancing the Structures A&E gas project, including a CCUS facility at the Mellitah Complex, scheduled for completion in December 2027.
Electrification is extending offshore as well. New FPSOs, like the Agogo FPSO in Angola, are designed with fully electric topside and marine systems, reflecting a growing shift toward lower-emissions offshore production.
Financing the Transition
Scaling these pathways requires long-term, blended financing. Multilateral institutions are increasingly bridging gaps. The Climate Investment Funds selected Egypt, Namibia and South Africa to participate in a $1 billion industrial decarbonization program, alongside countries including Brazil, Mexico and Turkey, accelerating low-carbon technologies while prioritizing workforce reskilling and community protections.
In Egypt, the European Bank for Reconstruction and Development is supporting corporate-level decarbonization. A $25 million facility for Arabian Cement Company will fund a hydrogen injection system to reduce emissions by an estimated 120,000 tons per year, illustrating how targeted investments can deliver substantial reductions while advancing national decarbonization goals. Together, these initiatives show that financing – not technology alone – often determines whether decarbonization moves from pilot to scale.
