Djibouti
Green Hydrogen Vision
“The Republic of Djibouti, by its geographic position, is located on one of the busiest trade routes in the world and given its exceptional solar and wind resources, abundant land and easy access to the sea, has strong potential to become a major player in the production of the fuel of the future- green hydrogen. We wish to benefit from AGHA’s multiple activities, networks, and partnerships.” H.E. Yonis Ali Guedi, Ministry of Energy and Natural Resources, Djibouti.
In a significant move aimed at reshaping the energy landscape in the Horn of Africa, CWP Global, a prominent player in renewable energy development, has forged a partnership with the Government of Djibouti. Recently formalized through a historic joint declaration at the COP28 UN Climate Change Conference in Dubai, this agreement is set to propel the advancement of CWP's ambitious Green Star Hydrogen Hub initiative. Poised to redefine Djibouti's economic and energy trajectory, this landmark collaboration marks a crucial juncture in the region's journey toward sustainable energy.
The Dubai Joint Declaration outlines the agreement, emphasizing the substantial impact the Green Star Hydrogen Hub will have on Djibouti's economic growth. This encompasses the creation of highly skilled jobs, investments in infrastructure, and the provision of accessible power and water. The project is not merely conceived as an energy initiative but is envisioned as a catalyst for economic development and prosperity in Djibouti.
Yonis Ali Guedi, Djibouti's Minister of Energy and Mineral Resources, conveyed, "Through the implementation of this large-scale 5- 10-Gigawatt green hydrogen development project, we aim to position Djibouti as a central hub for the future fuel and supply green hydrogen to the numerous ships navigating the Bab El Mandeb Strait."
National Strategy
Djibouti is in the process of developing a dedicated national green hydrogen strategy.
Capacity targets
No known capacity targets have been declared as of 2024.
Impact Targets
Through green hydrogen project installations, Djibouti is looking to catalyse economic growth and diversification, unlocking local gains for the citizens.
The country aspires to create jobs and value-added industries. Located strategically in the Horn of Africa, it will support the development of low-carbon fuels and industrial products for export.
Project Spotlight
UAE-based renewable energy leader AMEA Power announced in November 2023 that it was poised to launch ambitious projects totalling $15 billion in Africa as it accelerates the production of green hydrogen. With an impressive clean energy pipeline of over 6 gigawatts (GW) spanning 20 countries, the company is set to establish three 1 GW electrolyser projects in Mauritania, Djibouti, and Egypt. “These projects are prime candidates for realization,” affirmed Hussein Matar, senior director of business development at AMEA Power, in a compelling interview with AGBI at the COP28 climate conference in Dubai.
Additionally, in December 2023, CWP Global and the Government of the Republic of Djibouti signed a joint declaration on the fringes of the COP28 to accelerate CWP’s Green Star Hydrogen Hub, a 5 to 10 GW green hydrogen development project. The project is expected to contribute significantly to Djibouti’s economy and has the potential to redefine its energy future.
Policy Development
Djibouti has laid a strong policy foundation for renewable energy and green hydrogen growth, with key legislation like the IPP law, Investment Code reforms, and PPP laws. These frameworks support Djibouti’s Vision 2035 goals, encouraging renewable energy adoption and incentivising investment in green hydrogen initiatives. Hydropower, solar PV, and wind projects are at the core of Djibouti’s renewable strategy, complemented by potential hydrogen projects.
Djibouti’s fiscal incentives for renewable energy and hydrogen projects include extended customs and tax exemptions under the PPP law, fostering a favourable investment environment. Infrastructure developments near strategic ports further enhance Djibouti’s potential as a green hydrogen supplier, with plans for a hydrogen-dedicated special economic zone bolstering its export capabilities.
Financing
No public investment amounts declared as of 2024.