Africa Green Hydrogen Programme (AGHP) — responses to enquiries received.
Eligibility
The AGHP targets pre-investment activities that contribute towards the Final Investment Decision/Financial Close stages. It is not expected that a SPV involved in developing a proposed project would have reached Financial Close.
An applicant should be a registered private sector entity, even if an application would be on behalf of a SPV.
Where a proposed project is developed by a consortium that is not a registered entity, a 'Lead Firm' in the consortium is eligible to apply. The Lead Firm, which should be a registered entity, is expected to be defined as such in agreements that establish the consortium.
Applicants can be registered private sector entities from AfDB Member and SEFA Donor Countries. Projects for the production of green hydrogen/derivatives must be located in Africa. The full listing of AfDB Member countries is available at afdb.org/members.
As stated on the application form: "Site/land access secured in any form, including purchase, lease, concession or equivalent arrangement, even if subject to further regulatory approval or permitting."
Green methanol, derived from electrolysis-based green hydrogen, qualifies.
ESIA is not listed under AGHP eligible activities.
As indicated on the application form, the AGHP is designed to support projects that have completed pre-feasibility studies, for the pre-investment activities leading up to Final Investment Decision/Financial Close.
See response to question 4.
AGHP funding can only be used to cover costs of external service providers related to eligible activities.
Only projects that plan to use renewable energy to produce hydrogen through electrolysis will be considered under the AGHP.
In principle these are considered eligible but will depend on the outcomes of a project's pre-feasibility study, which is a mandatory requirement under the AGHP. See also the response to question 11 regarding the source of the hydrogen.
See response to question 7.
Evaluation
Each project is assessed independently according to its merits, provided it has a clearly defined, distinct scope and structuring elements (e.g. capital structure, expected future cash-flows, technology configuration, offtake arrangements, etc). Subject to the above-mentioned project structuring elements, the same applicant (registered entity, with shareholding interests in several projects) can submit a separate application for each project.
The maximum grant amount per project will be based on the outcomes of the evaluation process — US$20 million is available across 3 to 5 top-ranked projects.
Evidence of co-financing mentioned in the application will be expected during the due diligence process once the 3 to 5 top-ranked projects have been selected.
The origin of CO₂ used in the production of green methanol will be assessed as part of the evaluation process.
An indication of commitment from prospective off-take partners will be assessed as part of the evaluation process. This can be in the form of a non-binding Memorandum of Understanding, Letter of Intent, or any other relevant documentation.
Co-financing is one of the core principles of the AGHP, hence the expectation that SEFA funding will complement other financing resources during the development stage (i.e. own funds or other financing facilities).
This will be an outcome of the evaluation process.
The profile of applicants will be assessed as part of the evaluation process, considering track-record and commitment of own financial resources in a proposed project.
Funding under the AGHP will be based on a bilateral reimbursable grant agreement with the AfDB. It will be necessary to clearly delineate the eligible activities expected to be funded through the AGHP.
Service providers are expected to be from AfDB Member and SEFA Donor Countries.
Co-funding resources can be from AfDB Member and SEFA Donor Countries.
Off-takers can be from AfDB Member and SEFA Donor Countries. Offtake arrangements will be assessed as part of the evaluation process.
Evidence (e.g. management accounts) of the development equity indicated during the application will be expected during the due diligence process once the 3 to 5 top-ranked projects have been selected, and in terms of the AGHP reimbursable grant agreement.
Additionality is assessed in terms of how prospective AGHP funding contributes to a project's prospects to progress to FID/FC, considering specifically the mobilisation of commercial capital (equity and debt) that would not be feasible without the SEFA funding. 'Rationale' is a broader consideration to assess the reason(s) for seeking AGHP funding in the context of the programme's objectives.
The application form and guide provide examples of the documentation required to assess government endorsement. A summary can be included as part of the documentation.
The extent of project partner contributions will be assessed as part of the evaluation process. There is no minimum threshold for such contributions.
Total development cost refers to the costs incurred and expected to be incurred during the pre-Financial Close phase of a project.
Committed funding refers to funding already deployed and funding confirmed/approved to be further deployed on a project.
The extent of a project's GHG emissions reductions will be assessed as part of the evaluation process. There is no minimum threshold.
GHG reductions considered under the AGHP are due to the displacement of fossil fuels in power generation and production processes. There is no consideration for sequestration.
This is an amount budgeted to support small-medium enterprises (SMEs) in an African country where a project is located, as part of contributing to socio-economic development.
As stated in the Application Guide: a project can be considered as 'supply-side' (i.e. supply of GH/derivatives) or 'offtake side' (purchase of GH/derivatives for industrial production, agriculture and transportation). Commercial offtakers are required for the viability of 'supply-side' projects; suppliers of GH/derivatives are required for the viability of 'offtake side' projects.
This will depend on project-specific implementation milestones and financing plans. Total construction funding will be required to commence construction; total development funding is required to get a project to Financial Close.
The GHG impact on a power system is based on the surplus annual RE generation output (i.e. available energy that would otherwise be curtailed) associated with a green hydrogen project that can be injected into local/regional grids and displace fossil-fuelled power generation.
GHG reduction applies in cases where a project is expected to displace existing fossil-fuelled generation/industrial production processes. GHG avoidance applies where a project is expected to avoid future/planned fossil-fuelled generation/industrial production processes.
This is related to the point where a project's outputs will be used (e.g. displacement of fossil fuels in industrial processes or the transportation of goods).
The CfP focuses on hydrogen produced from renewable energy and electrolysis.
This will be assessed on a project-by-project basis as part of the evaluation process. As stated in the Application Guide: a project can be considered as 'supply-side' (i.e. supply of GH/derivatives) or 'offtake side' (purchase of GH/derivatives for industrial production, agriculture and transportation). Commercial offtakers are required for the viability of 'supply-side' projects; suppliers of GH/derivatives are required for the viability of 'offtake side' projects.
The scale of the selected 3 to 5 projects will depend on the evaluation process. There are no specified thresholds.
See response to question 4.
General
The programme is administered by the Sustainable Energy Fund for Africa (SEFA), an African Development Bank (AfDB) Special Fund. Funding — in the form of a Reimbursable Grant — will be channelled through the AfDB.
A Reimbursable Grant is essentially an interest-free loan, meaning only the principal amount will be repayable. In the case of the AGHP, repayment of an approved amount will be triggered when a project reaches Financial Close.
Approved funding, subject to due diligence processes — it is expected to disburse in tranches according to deliverables agreed with the 3 to 5 top-ranked projects.
Once a project reaches Financial Close, the full grant amount will be due for repayment.
See response to question 35.
The 3 to 5 top-ranked projects will undergo a due diligence process before funding is approved.
There is no provision for repayment of approved grant funding before Financial Close. However, careful monitoring will be continuously undertaken to assess prospects for an approved project to reach Financial Close. Specific details will be part of the due diligence process that the 3 to 5 top-ranked projects will undergo before funding is approved. The difference between disbursements (to projects for approved AGHP activities) and grant repayments at Financial Close should be noted.
Conditions Precedent will be an outcome of due diligence and approval processes related to the 3 to 5 top-ranked projects.
While the seed capital for the AGHP has been provided by Germany as a SEFA donor, the programme is implemented under SEFA, which is a Multi-Donor Special Fund administered by the African Development Bank and subject to Bank rules and procedures.
Based on the outcomes of due diligence processes related to the 3 to 5 top-ranked projects, approval of funding is expected by Q4 2026. Execution of agreements is expected by Q2 2027, and disbursements will depend on the resolution of Conditions Precedent and the timing of agreed deliverables.
This will be assessed on a case-by-case basis during the evaluation process.
Financial Close refers to the milestone reached when the first draw-down from a project finance facility is possible. This will vary from project to project.
Expected terms will be an outcome of the due diligence process involving the 3 to 5 top-ranked projects. Following internal assessment and approval processes, a Reimbursable Grant is converted into a pure grant in cases where a project does not proceed to Financial Close. For this reason, it is crucial to have visibility of the path to FID/FC throughout. See also responses to questions 45, 47, and 50 regarding the repayment of a Reimbursable Grant and other relevant information.
Implementation timelines will be considered on a project-by-project basis, as an outcome of the due diligence process involving the 3 to 5 top-ranked projects.
The key post-selection steps will include due diligence, approvals, RG agreement negotiation and execution, followed by implementation and reporting/monitoring.
The evaluation will be based on proposals submitted through the online AGHP portal. Further detailed engagements will form part of the due diligence process involving the 3 to 5 top-ranked projects.
Timelines: see response to question 53. Disbursements: see response to question 46.
Application guide
SEFA Africa Green Hydrogen Programme (AGHP) — Call for Proposals 2026. Read this before completing the form.
Programme overview
The SEFA Africa Green Hydrogen Programme (AGHP), seeded with funding from the German government, aims to contribute to the development of Africa's emerging GH/derivatives sectors. The programme aims to provide funding for high-value, strategic project development activities, expected to facilitate new investments in solar PV and wind power generation, battery energy storage systems (BESS), desalination, electrolysis and the production of GH/derivatives. Where available and cost-effective, projects with access to surplus energy from existing hydropower and geothermal energy plants will also be considered.
Eligible activities encompass feasibility studies (excluding RE resource assessments); Front-End Engineering Design/Detailed Engineering Studies; offtake/supply agreement structuring; project structuring/transaction advisory. Up to US$20 million will be available across 3 to 5 top-ranked projects.
Consideration is restricted to projects in Africa, located in countries that have, as a minimum: proven renewable energy resources that can be harnessed to produce GH/derivatives while contributing to local socio-economic development; availability of land and water; as well as good prospects to access any combination of potential domestic and/or international off-taker markets or supply-chains for GH/derivatives.
Depending on positioning in the value-chain, a project can be considered as 'supply-side' (i.e. supply of GH/derivatives) or 'offtake side' (purchase of GH/derivatives for industrial production, agriculture and transportation).
Notable outcomes expected from the SEFA AGHP include: the decarbonisation of industries and power systems through the reduction and/or avoidance of GHG emissions resulting from the displacement of fossil fuels; contribution to skills and capacity development, employment for youth and women, and other critical socio-economic development initiatives. The integration of surplus renewable energy generation into local/regional grids is strongly encouraged; so is the augmentation of potable water supplies through desalination.
The programme is also expected to contribute towards foreign-direct investment (FDI), leveraging the expertise and financing resources available in AfDB Member and SEFA Donor Countries, encompassing project sponsors as well as service and technology providers.
The funding instrument available to successful projects will typically be a reimbursable grant (RG), with repayment expected to be triggered at Financial Close (FC).
Eligibility criteria
All seven criteria must be satisfied. Any single No disqualifies the application.
Registered private sector entity in a GH value-chain activity
Covers at least one eligible activity
Pre-feasibility studies and site/land acquisition completed
Government endorsement, RE assessments, E&S permitting, licensing, and commercial structuring completed or in progress
Project in an AfDB Regional Member Country
Proven RE resources supporting GH production
Confirmed land/water access and identified offtake or supply-chain linkages
Section-by-section guidance
Section 01 — Applicant information
Details of the submitting organisation — not a parent or intermediary. Upload the official certificate of incorporation.
Section 02 — Project information
Project description (500 words max): Technology, development status, and why it is ready for SEFA support.
Project cost vs. development cost: Total cost to build and commission vs. pre-FID spend.
SEFA grant: State only what SEFA will fund. No per-project maximum — allocation is determined by ranking.
Activities to be funded: Enter each activity and amount in the table. Name specific studies or mandates. Generic descriptions score lower.
GHG figures: Reductions = displacing existing fossil fuel use. Avoided = preventing future use. Both in ktCO2eq/year.
Supporting document: Latest feasibility study or pre-FEED report. Mandatory.
Section 03 — Project evaluation metrics
Land/water/resources: Secured or formally identified only. Use verified RE assessment figures.
Jobs: Direct employment only. Youth/women percentages are projections.
Additionality: Why is SEFA funding specifically required? What cannot proceed without it?
Government endorsements: JDA, national strategy inclusion, or ministry letter. Upload the document.
Section 04 — Funding request
Rationale, capital-raising, risks: 500 words max each. Be specific — name lenders, amounts, risk mitigations.
AfDB officer: Name them if contacted. Does not affect eligibility.
Glossary
BESSBattery Energy Storage SystemE&SEnvironmental and Social standardsFEEDFront-End Engineering DesignFID / FCFinal Investment Decision / Financial CloseGH / GH2Green HydrogenIRRInternal Rate of ReturnJDAJoint Development AgreementLCOHLevelised Cost of HydrogenMTPAMillion Tonnes Per AnnumRMCAfDB Regional Member CountrySEFASustainable Energy Fund for AfricaTVETTechnical and Vocational Education and Training
Evaluation criteria — 100 points total
Eligible proposals are ranked out of 100 points across the following criteria.
Criteria
Key elements
Pts
Profile of Sponsor(s)
Track-record and evidence of commitment of own resources in the proposed project.
10
Demonstration effects
Distinctive/unique features and prospects for scalability.
5
Viability of GH project development
National framework alignment; land access; viable RE resources and water; licensing status; market access; supporting infrastructure.
20
Power sector benefits
RE generation (MW) and electrolyser capacity (MW); surplus power to grids (MW and GWh/year); contribution to electricity access (households).
10
Local socio-economic outcomes
Value-chain development; jobs (construction and operations); youth and women employment; skills development; community co-benefits.
10
E&S sustainability
Technical design, operations and workplace safety standards; E&S compliance including AfDB Integrated Safeguards System; status of E&S certification/permitting.
10
Decarbonisation potential
Potential to reduce/avoid CO₂ from power generation; potential to reduce/avoid CO₂ from industrial processes or transportation.
Project costs; development funding committed; funding shortfall and additionality; path to FID and FC; potential to attract AfDB, DFI, and private sector financing.
15
Submission
Deadline: 11 May 2026, 5pm Abidjan time. Late submissions will not be considered.
Applications are screened against eligibility criteria first. Shortlisted applicants will be contacted directly.
