The energy transition is taking a pragmatic and multifaceted approach as Africa seeks to meet growing energy demands while reducing emissions. Based on real-world constraints, from financing to reliability, the continent is combining green hydrogen, renewable energy, natural gas, electrification, and targeted investments to reduce carbon intensity without slowing development.
Green hydrogen gains momentum
Green hydrogen is increasingly being recognized as a practical decarbonization tool that can replace gray hydrogen used in hydroprocessing and hydrocracking, especially in refining. This allows operators to reduce emissions while maintaining critical refinery operations. The Sasol-led HySHiFT project integrates green hydrogen into the Fischer-Tropsch facility and demonstrates this application to produce sustainable aviation fuel through a 200 MW electrolyzer at the Secunda plant.
The government is also laying the groundwork to expand green hydrogen beyond domestic use. In January 2025, the ministers of Algeria, Tunisia, Austria, Germany and Italy formalized a declaration to proceed with the construction of the 3,300 km Southern H2 Corridor, positioning Algeria as a major supplier to Europe. Angola is also pursuing green hydrogen with a focus on export. Sonangol confirmed the country’s first green hydrogen project, which is scheduled to produce 400,000 tonnes of hydrogen per year from 2027, supporting the country’s goal of reaching 70% of its renewable energy capacity by 2035.
Renewable energy at the asset level
Renewable energy is increasingly being integrated directly into upstream operations, reducing reliance on diesel and minimizing flaring. Hybrid power systems that combine renewable energy and gas can help operators reduce Scope 1 and Scope 2 emissions while improving reliability. Uganda’s Tilenga oil field uses associated gas separated at a central processing facility to generate the electricity needed for processing operations, reducing flaring and dependence on external power.
Natural gas as a transition enabler
Natural gas remains a central pillar of Africa’s decarbonization strategy, particularly as an alternative to diesel and oil in power generation. Switching to gas turbines, often in combination with renewable electricity, reduces emissions at compressor stations and production facilities. In Nigeria, a dedicated upstream facility is being developed to supply gas from the Iceni oil field to the Dangote Fertilizer and Petrochemical Plant, an initiative in line with the government’s Decade of Gas strategy to strengthen the country’s industrial energy supply.
Gas is also being introduced at the system level through flaring reduction and commercialization programs. In December 2025, the Nigeria Upstream Petroleum Regulatory Commission issued permits to 28 companies to convert flare gas into commercial resources under the Nigeria Gas Flare Commercialization Programme. The initiative is expected to reduce emissions by 6 million tonnes per year, create up to 100,000 jobs and turn environmental responsibilities into economic opportunities.
Technology that promotes low-carbon management
Innovative technologies and low-emission designs are shaping Africa’s energy transition. Carbon capture, utilization and storage (CCUS) is gaining attention as a way to reduce emissions from large-scale gas development while maintaining production. In Libya, Eni and the National Oil Corporation are pursuing the Structures A&E gas project, which includes a CCUS facility at the Melita complex, and is scheduled for completion in December 2027.
Electrification is also spreading to the oceans. New FPSOs, such as Angola’s Agogo FPSO, are designed with fully electric topsides and offshore systems, reflecting the growing shift towards lower-emission offshore production.
Financing the transition
Scaling up these pathways requires long-term, complex financing. Multilateral institutions are increasingly filling the gap. The Climate Investment Fund has selected Egypt, Namibia and South Africa to participate in a $1 billion industrial decarbonization program, along with countries such as Brazil, Mexico and Turkey, to accelerate low-carbon technologies while prioritizing workforce reskilling and protecting local communities.
In Egypt, the European Bank for Reconstruction and Development is supporting decarbonization at the corporate level. Arabian Cement Company’s $25 million facility will fund a hydrogen injection system that will reduce emissions by an estimated 120,000 tonnes per year, demonstrating how targeted investments can deliver significant savings while advancing national decarbonization goals. Taken together, these efforts show that moving decarbonization from pilot to scale often depends on funding, not just technology.
