Morocco and Nigeria dominate funding in February

From the newsletter

Green hydrogen companies in Morocco and Nigeria got the most funding in February 2025, raising a combined $8.262 billion in just two deals, underscoring growing investor confidence in Africa’s renewable energy potential. The funding was split between Hydrojeel company in Morocco and Alternative Petroleum and Power Limited (APPL) in Nigeria.

• In Morocco, Hydrojeel, a subsidiary of state-owned fertiliser producer OCP Group, secured a $32 million grant from Germany’s PtX Development Fund to develop the Jorf Hydrogen Platform. The facility will produce 100,000 tonnes of green ammonia annually using green hydrogen generated on-site, with plans to scale up to 1 million tonnes by 2027 and 3 million tonnes by 2032.

• Founded in February 2024 by InnovX, OCP Group’s innovation and technology arm, Hydrojeel was established to lead the company’s Green Hydrogen & Green Ammonia Program. The initiative aims to scale hydrogen production, develop green ammonia, and advance sustainable energy technologies, reinforcing Morocco’s growing role as a regional hub for clean hydrogen and ammonia exports.

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• Meanwhile, Nigeria made a bold entrance into the green hydrogen market, securing an $8.23 billion investment from China’s LONGi Green Energy for a project led by APPL. The facility, located in Akwa Ibom State, will produce 1.2 million tonnes of green methanol annually, along with by-products like medical-grade oxygen and food-grade carbon dioxide.

• The deal marks Nigeria’s first major green hydrogen investment, signaling the country’s intent to harness its vast renewable resources and leverage existing gas infrastructure to build a competitive hydrogen industry. Although a late entrant to the space, Nigeria’s strategic location and evolving policy landscape position it well to catch up with regional early movers.

• APPL is a privately owned Nigerian company focused on delivering clean, efficient, and environmentally friendly energy solutions. The company provides reformed fuels and clean energy through its pioneering Nano Plasma Fuel Fusion Technology (NPFFT) and Sulfex™ Desulfurisation Technology (SDT), highlighting its commitment to sustainable innovation.

• These February funding rounds illustrate the diverse pathways African nations are exploring to carve out their share of the green hydrogen market. Morocco’s focus on green ammonia production complements Nigeria’s push into green methanol, showcasing the continent’s versatility in developing hydrogen derivatives for industrial use. 

Our take

• Nigeria’s $8.23 billion deal is massive for a first-time green hydrogen project, signalling the country’s intent to catch up quickly. However, such a large initial investment carries risk — sustained policy support and infrastructure development will be critical for the project to succeed.

• The contrast between Morocco’s ammonia focus and Nigeria’s methanol production highlights Africa’s versatility in hydrogen applications. This diversification not only reduces reliance on a single product but also makes the continent an attractive partner for various global markets, from fertilisers to clean industrial fuels.

• The scale of recent green hydrogen investments in Morocco and Nigeria signals that Africa is not just participating in the global energy transition, it is positioning itself as a powerhouse. If these projects deliver on their promises, the continent could become a key supplier of sustainable fuels, reshaping global energy markets and redefining Africa’s economic narrative.