Nigeria has partnered with Chinese investors to develop a €7.6 billion ($7.9 billion) green hydrogen-based methanol project in Akwa Ibom State, marking one of Africa’s largest hydrogen investments to date.
The project, located in the Liberty Free Trade Zone, aims to produce 1.2 million tonnes of methanol annually for export, alongside medical oxygen and food-grade CO2. The agreement was signed by the Nigerian federal government, APPL Hydrogen Ltd, and China’s LONGi Green Energy Technology.
Methanol, a key industrial feedstock used in plastics, adhesives, and synthetic fuels, is increasingly being developed as a low-carbon alternative for shipping, aviation, and hard-to-decarbonize industries.
Nigeria’s Minister of Innovation, Science, and Technology, Chief Uche Nnaji, hailed the project as a "significant step" in advancing Nigeria’s decarbonization strategy, boosting its role in the global green energy market.
Alhaji Bamange Usman Jada, Managing Director of the Oil and Gas Free Trade Zone Authority, said the project would boost exports, create jobs, and support economic diversification.
Despite Africa’s growing hydrogen ambitions, no projects have yet reached a final investment decision, according to the Energy Industries Council.