Rich in a variety of energy resources from oil and gas to renewable energy, North Africa is accelerating the development of energy projects to address rising demand, boost European exports and drive sustainable economic growth. Recent developments highlight the feasibility for large-scale investments in the region while showcasing its potential to become a major energy hub.
Egypt Advances Largest Wind Facility
Egypt is accelerating renewable energy development with the rollout of its 10 GW Suez Wind Power Project: the country’s largest wind power facility. The project secured $170 million in funding from the African Development Bank in December 2024. Developed by clean energy firm ACWA Power, the $1.1 billion project will power around 11 million households, mitigate 25.5 million tons of carbon emissions and help save $6.5 billion in annual gas costs. Up to 120,000 jobs will created during construction and operation stages. The project moves Egypt closer to its target of generating 42% of its energy from renewables by 2035, reinforcing North Africa’s position as a global wind energy producer.
Algeria Expands Largest Gas Project
Algeria, Africa’s largest natural gas producer, is transforming its hydrocarbon industry through the Hassi R’Mel Expansion Project – the country’s largest gas field. National Oil Company Sonatrach launched the third phase of the Hassi R’Mel gas expansion in December 2024. The $2.3 billion initiative includes the construction of gas compression stations and demercurization units, the rehabilitation of gas collection networks and the installation of new processing trains. The project, expected to boost gas production by 2027, will enhance Algeria’s regional and international gas supply, solidifying North Africa’s role as Europe’s third-largest gas supplier.
Morocco-UK Power Project Progresses
Morocco is affirming its role as a clean energy exporter with the expedition of the Morocco–UK Power Project. Project partner Xlinks secured $14.1 million in funding from the Africa Finance Corporation and $10.2 million from GE Vernova in April 2024. TotalEnergies also invested $25 million to expedite the project by acquiring a stake in Xlinks in December 2023. The project will include the construction of 11.5 GW of wind and solar generation infrastructure, a 22.5GWh/5GW battery energy storage system and a 4,000 km subsea cable to export electricity to the UK. In addition to meeting Morocco’s local energy needs, the project will provide 8% of the UK’s electricity needs, powering 7 million UK households.
Egypt Revitalizes Gas Industry
Egypt is implementing the Western Desert 11 project to expand natural gas production in the Western Desert Gas Complex and address domestic gas shortages. The $732 million project includes the installation of a 600,000 million cubic feet per day gas processing facility to ensure a steady supply of LNG for domestic needs and derivatives for petrochemical industries. Egypt has over the past year resorted to gas imports from the US and Algeria to meet local energy needs.
North Africa’s Slate of Green Hydrogen Projects
North Africa is emerging as a global hub for green hydrogen production, hosting several large-scale projects and ranking as a top investment destination for global renewable energy financiers. The region boasts some of the world’s largest green hydrogen projects, including Globeleq’s SCZONE and ACME Group’s Sokhna in Egypt; CWP’s AMAN project in Morocco; as well as TotalEnergies’ H2 Notos and ACWA Power’s 600,000 ton per annum initiatives in Tunisia.