Amid the shifting global energy landscape, Gulf countries are expanding their activities in Africa’s energy sector, with a strong focus on renewables, hydrogen and sustainable fuels. Attracted to Africa’s abundant solar, wind and hydropower resources, nations like the UAE, Saudi Arabia and Qatar have accelerated power-focused investments across the continent, partnering with local firms and national energy companies to carry out billion-dollar megaprojects. Below are five notable energy developments being led by Gulf countries in Africa.
Mauritania’s 10 GW Green Hydrogen Project
Emirati state-owned renewable energy company, Masdar, in partnership with Egypt’s Infinity Power and Germany’s Conjuncta, is currently developing a 10 GW green hydrogen project on the west coast of Mauritania. Starting with a 400 MW phase to come online by 2028, the project aims to export up to eight million tons of renewable fuel annually to Germany. The initiative supports Mauritania’s growing focus on large-scale green hydrogen production, with similar projects being led by CWP Global, bp, and Chariot and Total Eren in the region. Masdar’s involvement in the project aligns with its wider portfolio, which includes renewable ammonia projects in Egypt and the UAE.
South Africa’s Project DAO
Saudi green project developer, ACWA Power, signed a power purchase agreement last December for Project DAO – South Africa’s largest hybrid renewable power plant. Representing an $800-million investment, the project is made up of 442 MW of solar photovoltaic installation and 1,200 MWh of battery storage, making it one of the world’s largest. Expected to come online by 2026, the project will generate over 1,000 construction jobs and contribute to clean power generation in South Africa. ACWA Power, backed by Saudi Arabia’s Public Investment Fund, continues to expand its green energy portfolio across Africa, with operations in 12 countries and a total installed generation capacity of 53.69 GW.
Egypt’s Ain Sokhna Project
AMEA Power, a UAE-based renewable energy company, signed a Memorandum of Understanding (MoU) in 2022 to produce 390,000 tons of green ammonia annually in Ain Sokhna, Egypt. Developed in partnership with the General Authority for Suez Canal Economic Zone, the Sovereign Fund of Egypt, the Egyptian Electricity Transmission Company, and the New and Renewable Energy Authority, the project utilizes renewable energy for large-scale electrolyzers to produce green hydrogen. The hydrogen will then serve as feedstock for an adjacent ammonia synthesis facility, enabling the production and export of green ammonia through the Ain Sokhna port, located on the western shore of the Red Sea’s Gulf of Suez. The MoU marked the start of several green hydrogen and ammonia projects launched by AMEA Power across the Middle East and Africa, with the company signing seven deals for green projects during COP28 alone.
Algeria’s STEP Project
Emirati service company, Petrofac – along with its joint venture partner, China Huanqiu Contracting & Engineering Corporation – secured a $1.5-billion petrochemical engineering, procurement, and construction contract last May for Algeria’s STEP project. Led by STEP Polymers, a subsidiary of Sonatrach, the project involves designing and building propane dehydrogenation and polypropylene production units, with a view to producing 550,000 tons of polypropylene per year. The project, located in the Arzew Industrial Zone west of Algiers, strengthens Petrofac’s presence in Algeria and aligns with the country’s efforts to expand into petrochemical projects.
Africa: Qatar-Jeniks Africa Gas Project
Accra-based Jeniks Energy Group has partnered with Qatari investors to launch the Qatar-Jeniks Africa Gas Project, a nine-billion-dollar private venture to develop gas reserves in 11 African countries. The project spans Ghana, Kenya, Tanzania, Angola, Sierra Leone, Morocco, Egypt, Benin, Mozambique, Rwanda and Zambia and focuses on gas exploration, infrastructure and development. The initial phase targets Mozambique, Rwanda and Zambia, as well as a comprehensive gas aggregation plan in Nigeria, which is currently aiming to monetize its 203 trillion cubic feet of estimated gas reserves. The partnership reflects Qatar’s growing commitment to facilitating gas development across the continent, recognizing the critical role it will play as a transitional energy source and catalyst for downstream growth.
