The Engineering Infrastructure Required to Make Green Hydrogen Commercially Viable

Last Updated 1 hour ago by Kenya Engineer

Africa’s ambitions to become a major producer of green hydrogen are beginning to move from policy statements towards project development. But converting the continent’s abundant solar and wind resources into a commercially viable hydrogen industry will require more than installing electrolysers powered by renewable electricity.

The emerging industry depends on a coordinated network of generation plants, transmission lines, water supply systems, electrolysers, storage facilities, pipelines, industrial plants and export terminals. These assets must be developed together, with their capacities and delivery schedules aligned to the needs of hydrogen producers and their eventual customers.

South Africa’s latest green hydrogen programme illustrates both the opportunity and the engineering challenge. On 15 September 2026, the country announced its first wave of six priority green hydrogen and Power-to-X projects, alongside the launch of its inaugural Green Hydrogen Deal Book. The programme is intended to move selected projects towards investment, construction and commercial operation. dee.gov.za

For Africa’s engineering sector, the significance lies in the infrastructure required to make these projects work. Renewable electricity must be available at a competitive cost, water must be supplied without undermining local needs, and the hydrogen produced must be converted, transported and delivered in forms that customers can use.

The commercial test is whether these interconnected systems can produce a competitive product and deliver it reliably to a market willing to pay for it.

From renewable electricity to green hydrogen

Green hydrogen is produced by using electricity from renewable sources to split water into hydrogen and oxygen through electrolysis.

The process appears straightforward, but commercial production requires several interdependent systems to operate together.

Renewable generation supplies electricity to the electrolyser, which uses electrical energy to drive the chemical reaction. Water must be treated to the quality required by the equipment. The resulting hydrogen must then be conditioned, compressed or otherwise prepared for storage, transport or further processing.

Depending on the intended market, the hydrogen may be used directly or converted into products such as ammonia, methanol or synthetic aviation fuel.

Each conversion introduces additional equipment, energy requirements, operating costs and potential losses.

A project producing hydrogen for a nearby industrial customer, for example, may require a relatively short delivery system. An export-oriented project supplying international markets may also need large storage facilities, ammonia synthesis or other conversion plants, specialised handling systems and access to suitable ports.

Consequently, the choice of end market influences the design of the entire project.

The first engineering decision is what product the project intends to deliver, to whom, and through which supply chain.

That decision determines the required production capacity, electricity demand, water infrastructure, storage arrangements and transport systems.

Renewable power is the foundation

Electricity is the principal energy input in green hydrogen production and one of the most important determinants of its cost.

Countries with strong solar and wind resources have an advantage, but the availability of renewable energy alone does not guarantee commercially competitive hydrogen.

Developers must determine how much electricity can be generated, how consistently it will be available and what it will cost to deliver to the electrolyser over the project’s operating life.

Solar photovoltaic plants can produce electricity at competitive costs in suitable locations, while wind farms may offer complementary production profiles. Combining the two can improve the utilisation of transmission infrastructure and, depending on local conditions, reduce periods of low generation.

However, renewable resources vary with weather and time. Electrolysers operating on variable electricity supplies may experience fluctuations in production, while operating at low utilisation can increase the effective capital cost per unit of hydrogen produced.

Developers must therefore evaluate the trade-offs between renewable generation capacity, electrolyser capacity, electricity storage, grid connections and expected production.

An oversized renewable-energy system may provide more operating hours for the electrolyser but increase capital expenditure. A smaller system may cost less initially but leave expensive electrolysis equipment underutilised.

Battery storage can help manage short-term variations in electricity supply, although its economics depend on the duration and scale of the storage requirement. Longer periods of low renewable generation may require a different combination of generation capacity, grid supply or other measures.

The appropriate configuration must be established through detailed modelling of the local renewable resource, electricity demand, equipment performance and expected hydrogen output.

Grid connections and transmission capacity

A large hydrogen project can require substantial electricity generation capacity, potentially exceeding the available capacity of the local network.

Even where a country has sufficient generation at national level, transmission constraints may prevent that electricity from reaching a proposed industrial site.

Developers may need new high-voltage transmission lines, substations and grid reinforcement, particularly where projects are located in remote areas with excellent renewable resources but limited existing infrastructure.

The location of the electrolyser is an important engineering and commercial decision.

A facility close to renewable generation may reduce some transmission requirements but be far from water supplies, industrial customers or export infrastructure. A facility near a port or industrial zone may benefit from existing services but require additional investment to deliver electricity from renewable-energy projects elsewhere.

These competing requirements must be assessed together.

South Africa’s national green hydrogen programme recognises the importance of coordinating electricity generation with transmission, water, port and logistics planning. Government officials have emphasised that individual projects can be delayed by infrastructure constraints outside the control of their developers. dee.gov.za

The lesson is straightforward: power infrastructure must be planned around the complete industrial value chain rather than the requirements of the electrolyser alone.

Water infrastructure cannot be an afterthought

Water is the other essential input in electrolysis.

The theoretical chemical requirement is approximately nine litres of water for every kilogram of hydrogen produced. Actual water demand is higher when purification losses, cooling requirements and other plant operations are considered.

For a large project producing hundreds of tonnes of hydrogen per day, even the electrolysis requirement translates into millions of litres of water daily.

The precise requirement depends on the technology, plant configuration and whether water is also needed for downstream processing.

This presents a particular challenge in arid and semi-arid regions, which may have excellent solar or wind resources but limited freshwater availability.

A project that diverts scarce water from households, agriculture or existing industries could face environmental, social and commercial constraints even if its electricity supply is competitive.

Water availability must therefore be established during project preparation, with assessments of existing users, seasonal variation, competing demand and the long-term reliability of the proposed supply.

Desalination and water treatment

For projects near the coast, seawater desalination may provide an alternative to freshwater abstraction.

A desalination plant can treat seawater to produce freshwater, which must then undergo further purification to meet the requirements of the electrolyser. Reverse osmosis is one established desalination technology, while additional treatment processes may be required depending on the water quality and electrolyser specifications.

However, desalination requires energy, capital investment and supporting infrastructure.

The project must account for intake facilities, treatment equipment, electricity supply, pipelines, storage and the management of concentrated brine. The environmental implications of brine discharge and coastal infrastructure also require assessment.

Inland projects may need to consider treated municipal wastewater, industrial wastewater or other suitable sources, provided the water can be treated reliably and its use does not create unacceptable competing demands.

Water recycling and efficient plant design can reduce freshwater requirements, although the extent of the savings depends on the process configuration.

South Africa’s Department of Electricity and Energy has specifically identified water availability, treatment, recycling, desalination where appropriate and brine management as issues that must be incorporated into green hydrogen project design. dee.gov.za

For engineers, this means that water infrastructure must be designed alongside electricity generation and hydrogen production, not added after the principal project decisions have been made.

Electrolysers and the challenge of industrial integration

The electrolyser is the central production component, but it cannot operate as an isolated piece of equipment.

A commercial facility includes power-conversion systems, water purification, process controls, cooling, gas separation, hydrogen purification and safety systems.

Different electrolyser technologies offer different operating characteristics, costs and technical requirements. Alkaline electrolysis is an established technology used in industrial applications, while proton-exchange membrane systems offer other operating characteristics, including flexibility in responding to changing electricity supply. Solid oxide electrolysis is another technology under development and deployment, with different operating conditions and potential applications.

Technology selection should reflect the project’s electricity profile, scale, operating strategy, water quality, maintenance requirements and access to technical support.

Engineers must also consider how the electrolyser will respond to changes in renewable generation. Frequent operating changes can influence efficiency, component performance and maintenance requirements, depending on the technology and operating conditions.

The balance of plant is equally important. Pumps, compressors, cooling equipment, valves, instrumentation and control systems all contribute to the facility’s overall performance.

The design must provide appropriate monitoring, isolation, ventilation, leak detection and emergency shutdown arrangements. Hydrogen is highly flammable and can form explosive mixtures with air, making sound process engineering and safety management essential.

Hazardous-area classification, pressure-system design, materials selection, electrical protection and emergency response planning must be incorporated into the project from the outset.

Commissioning must verify not only that individual components function correctly, but also that the integrated plant operates safely and delivers the required output under its intended operating conditions.

Storage and transport determine the delivery model

Producing hydrogen is only one part of the commercial process. The product must reach its customer in a suitable form, at the required pressure, purity and delivery rate.

Hydrogen has a high energy content by mass but low volumetric energy density under ordinary conditions. Moving large quantities therefore requires specialised handling and infrastructure.

Depending on the application, hydrogen can be compressed, liquefied or converted into another chemical product.

Compressed hydrogen requires pressure vessels, compressors and appropriate transport or pipeline systems. Liquefaction requires substantial energy and specialised cryogenic equipment. Converting hydrogen into ammonia introduces a further industrial process, but ammonia is already traded internationally and has established handling infrastructure in many markets.

The most appropriate route depends on the distance to customers, the quantity transported, the intended application and the cost of conversion and reconversion.

For export-oriented projects, ammonia may offer a practical route to international markets. However, the cost of synthesis, storage, shipping and any subsequent conversion back into hydrogen must be included in the overall economics.

Hydrogen pipelines may be suitable for large, sustained flows between production facilities and industrial customers, but their feasibility depends on distance, throughput, pressure, material compatibility, safety requirements and the availability of suitable rights of way.

Repurposing existing gas infrastructure may be possible in some cases, but it cannot be assumed without technical assessment of pipeline materials, compressors, valves, seals and operating conditions.

Storage is also necessary to manage differences between production and consumption. The required capacity depends on the reliability of supply, the customer’s demand profile, transport schedules and the consequences of interruptions.

For a hydrogen project supplying an industrial plant continuously, insufficient storage or unreliable transport could undermine the economics of the entire facility even when renewable electricity and electrolysis are competitive.

Ports and industrial corridors connect production to markets

Export-oriented hydrogen projects require infrastructure beyond the production site.

Ports may need specialised storage tanks, loading systems, pipelines, safety zones and facilities for handling ammonia or other hydrogen-derived products. Existing port infrastructure may require substantial modification before it can accommodate these new industrial activities.

The development of export terminals must also be coordinated with shipping capacity, international product specifications and the expected demand from overseas customers.

South Africa’s emerging project pipeline illustrates the importance of connecting renewable-energy resources, industrial facilities and ports.

The country’s three provincial hydrogen development areas offer complementary capabilities. The Northern Cape has substantial solar and wind potential and space for large-scale developments. The Western Cape provides access to Saldanha Bay and maritime trade routes, while the Eastern Cape offers industrial facilities and port infrastructure around Coega and Ngqura. dee.gov.za

These advantages could support a connected value chain in which renewable electricity is generated in resource-rich locations, hydrogen or its derivatives are produced near suitable industrial infrastructure, and finished products are delivered to domestic or international customers.

But geographic proximity alone does not establish commercial viability.

Transmission capacity, water pipelines, transport links, port upgrades and industrial facilities must be delivered in the correct sequence. A production plant that is completed before its export terminal is ready may be unable to sell its output as planned.

Similarly, a port expansion without sufficient committed production and shipping demand could leave expensive infrastructure underused.

Coordinated infrastructure planning is essential to reduce these risks.

South Africa moves from project announcements towards execution

South Africa’s announcement on 15 September 2026 marked an effort to concentrate government and investor attention on a smaller group of projects with clearer development pathways.

The first wave comprises six projects covering sustainable fuels, industrial decarbonisation, green manufacturing and domestic hydrogen demand. The government also launched its first Green Hydrogen Deal Book to present opportunities to investors, financiers, technology providers and prospective customers. dee.gov.za

The portfolio illustrates how different end markets create different infrastructure requirements.

The Phelan Green Group project at Saldanha Bay is focused on electro-sustainable aviation fuel. The government announced that the project had reached a final investment decision, with US$100 million in equity committed and an offtake agreement secured. Construction was expected to begin in the first quarter of 2027, with the first exports targeted for the first quarter of 2029. These are announced milestones, not confirmation that construction or production has already begun. South African Government

The proposed Coega Green Ammonia Project in the Eastern Cape has completed early preparatory work, but further commercial, technical and financing work remains necessary before a final investment decision.

The Saldanha Hydrogen Direct Reduced Iron project seeks to connect hydrogen production with lower-emissions iron and steel manufacturing. Other projects in the portfolio target green ammonia, methanol and smaller-scale domestic hydrogen applications. Their stages range from development and pre-feasibility to more advanced engineering work. South African Government

The differences are significant.

A project supplying hydrogen to a steelworks must coordinate the hydrogen plant with the steelmaking process and the availability of suitable iron ore. A green ammonia facility needs additional process equipment and dependable access to nitrogen, typically separated from air. A sustainable aviation fuel project requires hydrogen to be integrated with the other feedstocks and conversion processes needed to produce a fuel that meets applicable specifications.

Each project therefore requires its own infrastructure design, commercial model and route to market.

South Africa’s approach recognises that a collection of project announcements is not the same as a functioning industrial sector. Projects need credible engineering, financing, infrastructure access and customers before construction can proceed.

The customer is as important as the technology

One of the greatest risks facing the green hydrogen industry is the possibility of building production capacity before securing sufficient demand.

Hydrogen and its derivatives must compete with established fuels and industrial feedstocks. Even where a product offers lower emissions, customers must be able to justify the additional cost, adapt their equipment and secure reliable supplies.

Potential markets include fertiliser production, chemicals, steelmaking, shipping fuels and sustainable aviation fuels. However, each market has different technical requirements and willingness to pay.

Long-term offtake agreements can provide developers and lenders with greater confidence that a project will generate revenue. These agreements can help establish expected volumes, product specifications, delivery schedules and pricing arrangements.

But an agreement must be commercially credible. Its value depends on the financial strength of the buyer, the terms of the contract and whether the product can be delivered at the required cost and quality.

South Africa’s government has emphasised the need to convert expressions of interest into bankable offtake arrangements capable of supporting project finance. South African Government

This is important because green hydrogen projects are capital-intensive. Developers must invest in generation, electrolysers, water infrastructure, storage and other facilities before receiving revenue from product sales.

Without sufficiently secure demand, investors may be reluctant to commit the capital required for construction.

The engineering design must also be matched to the market. A project sized for a particular buyer’s requirements may face expensive changes if that buyer withdraws or the intended market develops more slowly than expected.

The most commercially robust projects will align production capacity, infrastructure investment and customer demand from the earliest planning stages.

Financing the infrastructure around the plant

A green hydrogen project can be technically feasible yet commercially unviable if the supporting infrastructure is too expensive or cannot be financed.

The capital requirement extends beyond the electrolyser. Renewable generation, grid connections, water treatment, pipelines, storage and export facilities may represent substantial additional investments.

Some infrastructure can serve several projects, creating opportunities to share costs. Common transmission corridors, water pipelines, port facilities and industrial zones can reduce duplication where sufficient demand exists.

However, shared infrastructure requires coordination between developers whose projects may have different timelines, financing structures and commercial priorities.

Governments and infrastructure agencies can help coordinate planning, approvals and access to public infrastructure. Development finance institutions can support project preparation, while private capital may finance commercially viable assets.

South Africa’s green hydrogen programme has highlighted project preparation as a key constraint. Detailed engineering, environmental studies, legal arrangements and commercial structuring must often be completed well before construction financing becomes available. dee.gov.za

This early work can be expensive, especially for projects involving unfamiliar technologies and new supply chains.

A disciplined approach should identify the critical infrastructure requirements at the feasibility stage, assign responsibility for delivering each asset and establish realistic milestones for permitting, financing, construction and commissioning.

It should also assess the consequences if one part of the system is delayed. A hydrogen plant, transmission line and export terminal must be ready in a coordinated sequence if the project is to begin commercial operations as planned.

What the opportunity means for Kenya

Kenya has substantial renewable-energy resources, including geothermal, wind and solar, which could support selected hydrogen applications. However, the case for investment must be assessed against local industrial demand, electricity costs, water availability and access to customers.

The first question is where hydrogen could create practical value within Kenya’s economy.

Potential applications include fertiliser production, industrial feedstocks, selected transport uses and products for which lower-emissions alternatives are commercially attractive. These opportunities would require detailed assessment rather than an assumption that renewable resources alone justify large-scale hydrogen production.

Geothermal generation could offer an advantage for some projects because it can provide relatively steady electricity, although the cost and availability of power for a particular industrial development would need to be established.

Kenya would also need to examine the implications of using electricity for hydrogen production when the same electricity could serve households, businesses and existing industries.

Where electricity is scarce or expensive, diverting power into hydrogen production may not be economically justified unless the project creates sufficient additional value or uses electricity that would otherwise be curtailed.

Water availability is equally important. Any proposed project would need to establish a reliable source of suitably treated water and demonstrate that its demand could be accommodated without compromising existing users or environmental requirements.

The infrastructure requirements would then depend on the intended product. A domestic industrial application could avoid some of the costs associated with export terminals and long-distance transport, while an export-oriented development would need to compete with established and emerging producers elsewhere.

For Kenya’s engineering industry, the immediate opportunity may lie in project development, feasibility studies, renewable-energy integration, water treatment, process engineering, safety systems and industrial infrastructure design.

These capabilities would be relevant even before the country considers investing in very large hydrogen production facilities.

The priority should be to identify projects with a clear market, credible engineering and a realistic cost of supply, rather than treating green hydrogen as an objective in itself.

Making the infrastructure commercially viable

Africa’s green hydrogen opportunity rests on more than renewable energy potential. It depends on the ability to coordinate electricity generation, transmission, water supply, electrolysis, storage, transport and end-user infrastructure into a commercially viable system.

South Africa’s emerging project pipeline provides a useful illustration of how governments are beginning to focus on projects with defined development milestones, infrastructure requirements and potential customers.

The next phase will test whether these projects can secure financing, complete engineering and environmental work, build their supporting infrastructure and deliver products at competitive prices.

For engineers, this is a multidisciplinary challenge. Electrical engineers must design reliable power supplies; civil and mechanical engineers must deliver the physical infrastructure; chemical and process engineers must integrate production systems; and environmental specialists must address water use, emissions and other impacts.

The commercial outcome will depend on how well these disciplines are coordinated with financing, regulation, procurement and customer demand.

Green hydrogen will become a viable African industry not when the first electrolyser is installed, but when the complete infrastructure system can reliably deliver a competitive product to a committed market.

That is the standard against which the continent’s emerging projects should be judged.