Green Hydrogen for Local Economic Development

Green hydrogen is rapidly gaining global prominence as a crucial energy carrier for the future. Although much of today’s discussion focuses on hydrogen production and its export potential, domestic consumption of green hydrogen offers equally significant opportunities for local economic development—strengthening municipal infrastructure, creating skilled jobs, and stimulating new economic activities along various value chains. For many African countries, abundant solar and wind resources give cities a unique advantage, positioning them not only as innovation hubs but also as centers for technology transfer, workforce training, and industrial diversification. By integrating sustainable use of green hydrogen into urban planning, municipalities can enhance energy security, attract long-term investment, and build more resilient, climate-friendly local economies—ultimately becoming key drivers in the global clean-energy transition.

Group photo of participants in front of the conference building
Conference participants | Photo: Connective Cities

To advance the exchange of best practices and accelerate strategy development between African and German cities, Connective Cities hosted its second workshop on “Exploring the Potential of the Green Transition for Local Economic Development” held on 25–27 November 2025 in Mombasa. Representatives from Mauritania, Kenya, South Africa, and Germany participated. This edition focused on improving technological readiness for green hydrogen production, addressing local implementation challenges andstrengthening regional competitiveness among other readiness issues. The discussions further emphasized the importance of involving , and integrating universities, research institutions  and start-ups as key drivers of job creation and innovation.

The City of Nakuru, Kenya presented its benchmark strategy to position itself as a model green city and a leading hub for green fertiliser production within is floriculture sector,  reducing import dependency and supporting the emergence of new green industries. With its proximity to the rift valley geothermal vents, Nakuru is well positioned for cost- competitive green hydrogen production. The city aims to attract pilot projects, applied research initiatives, and local and international start-ups working along the green hydrogen value chain., reinforcing its long-term vision as a regional clean-energy and innovation hub.

Nine people are standing on a terrace in the harbour area of Mombasa.
Field visit to the port of Mombasa | Photo: Connective Cities

Kenya has adopted a national Green Hydrogen Strategy and participates in regional African hydrogen initiatives. Mombasa, as a major port city, holds strategic significance for export logistics and coastal project siting. While early national activities have focused on potential assessments and pilot sites, coastal locations like Mombasa are increasingly viewed as gateways for logistics, export-oriented hydrogen production, and coastal renewable-energy projects. The city now seeks to leverage its strategic location to establish itself as a global player in hydrogen-powered logistics and to develop the port into a logistics cluster that attracts innovative local and international investment supported by a skilled workforce.

In South Africa, the Waterberg region in Limpopo forms part of the national “Hydrogen Valley,” stretching across Limpopo, Gauteng, and KwaZulu-Natal. Mining and industrial operations in the Waterberg–Mokopane corridor are being integrated into hydrogen and platinum-group-metal value chains. Recent feasibility studies and national green hydrogen planning have made the region increasingly attractive to investors. The local development vision is to integrate renewable energy generation with mining operations and downstream green hydrogen and green ammonia applications. This approach aims to link industrial decarbonisation and new export opportunities with local job creation and investment. Waterberg is also seeking to strengthen collaboration with universities by fostering local and international research partnerships to spur pilot projects and nurture green start-ups across emerging value chains.

Mauritania has become a high-potential green hydrogen country due to its exceptional wind and solar resources and favourable export position toward Europe. Several large-scale, export-oriented hydrogen and ammonia projects have been announced or are under development. While the national strategy prioritises export-driven green hydrogen production, it also emphasises renewable energy use to support domestic power grids and industry. However, as national projects advance, municipalities within Nouakchott—particularly Sebkha and Ksar, – continue to face high electricity costs, pollution, limited infrastructure, and the absence of clear municipal hydrogen strategies. These communes are not seeking merely to host hydrogen developments, they aim to participate meaningfully in shaping equitable, community-centered value creation within Mauritania’s emerging green hydrogen economy. The City of Nouakchott through its private sector and international partnerships, now seeks to position itself as an active player in his transition with a focus on modernizing urban services , strengthening governance, and building local private-sector capacity ultimately becoming a regional hub for green urban development, logistics, and industrial enterprises linked to the green hydrogen value chain.

The participating German cities also shared key insights and updates on their latest initiatives. Karlsruhe highlighted its hydrogen hub around the Rhine ports (H2iPortKA) and its strong research ecosystem in collaboration with the Karlsruhe Institute of Technology and the Fraunhofer Institutes. Particularly noteworthy is the dynamic start-up and spin-off environment, which demonstrates how the green transition can generate new jobs and investment for an entire region.

Heilbronn, well known as a centre for technology and hydrogen innovation within Germany’s automotive and engineering clusters, aims to use green hydrogen to diversify its industrial base, upgrade workforce skills, and anchor research-driven companies in the region. Heilbronn University and nearby Fraunhofer initiatives are expanding applied research and innovation centers—including those focused on hydrogen technologies—leveraging strong industry links for piloting and skills development.

 

Nine people are standing on a terrace in the harbour area of Mombasa.
Field visit to the port of Mombasa | Photo: Connective Cities

The workshop underscored the vast opportunities emerging around green hydrogen production across regions endowed with abundant renewable energy resources.. However, cities and regions hosting these new green industries are often overlooked in national strategies that prioritize high-profile investments and export ambitions. Many localities remain uncertain of how they and their populations can directly participate in these developments. Significant technological and institutional gaps persist, and synergies between international high-tech initiatives and local realities are not automatic. As a result, municipalities are increasingly seeking models, international experiences, expertise, and partnerships to strengthen their capacity and create a level playing field:- one that enables prosperous, innovative and equitable local economies in which nations, investors, and communities all benefit alongside advancing technologies

Exploring the Potential of Green Transition for Local Economic Development

African and German Cities Power a Shared Vision for a Just, Climate-Smart Hydrogen Future

Cities across Africa and Europe are accelerating their role as frontline actors in the global green transition, driving innovation, investment, and climate resilience from the ground up. Following the successful launch of the Hydrogen Cities Working Group earlier this year in Naivasha, Kenya, Connective Cities will convene the second peer-learning workshop on 24–27 November 2025 in Mombasa, Kenya.

This flagship event will bring together city leaders, practitioners, industry innovators, researchers, and development partners to scale up municipal hydrogen strategies and unlock new pathways for green industrialization, inclusive growth, and just transition at the local level.

From Naivasha to Mombasa: Turning Ideas into Impact

The inaugural workshop in Naivasha brought together over 30 municipal representatives and technical experts to explore how cities can anchor the emerging green hydrogen economy in local value creation and job generation. It underscored hydrogen’s role not only as a clean-energy vector but as a catalyst for climate-neutral industrial ecosystems, skills development, and innovation-driven urban transformation.

Case studies showcased how municipalities are positioning themselves along the hydrogen value chain — from production and storage to end-use applications in mobility, manufacturing, and port logistics. Examples ranged from Namibia’s evolving hydrogen hubs to Germany’s Heilbronn and Karlsruhe regions, where local governments are building innovation clusters, R&D partnerships, and market linkages for hydrogen deployment.

An expert stands next to a screen showing a PowerPoint presentation.
Specialist presentation during the meeting in Naivasha | Photo: Connective Cities

Participants also highlighted the importance of integrated urban governance — combining spatial planning, transparent land management, and strong stakeholder engagement — to ensure hydrogen projects deliver tangible community benefits.

 Key takeaways from Naivasha included:

  • Municipal leadership as a driving force for innovation, investment, and policy alignment.
  • Local value creation through SME participation, skills training, and green entrepreneurship.
  • Institutional capacity and human capital as preconditions for hydrogen readiness.
  • Peer-to-peer collaboration as a catalyst for scaling solutions and knowledge transfer.

Since Naivasha, cities have been actively refining their project concepts, forging cross-regional partnerships, and identifying bankable entry points to accelerate their green transition agendas.

Green Hydrogen: Powering Sustainable, Inclusive Urban Futures

Africa’s vast solar and wind potential places its cities at the heart of the global clean-energy transformation. Green hydrogen — and its derivatives such as green ammonia and e-methanol — offers a once-in-a-generation opportunity for low-carbon industrialisation, climate resilience, and circular economy development.

For municipalities, this transition means:

  • Developing innovation clusters and hydrogen corridors that attract private investment.
  • Expanding renewable energy infrastructure and smart urban grids.
  • Enhancing water security and resource-efficient technologies such as desalination and wastewater reuse.
  • Creating green jobs across engineering, construction, logistics, and research sectors.
  • Catalysing start-ups, incubators, and technology partnerships.
  • Building skills pipelines aligned with future hydrogen markets.

Yet, challenges persist — from infrastructure gaps and regulatory complexity to financing bottlenecks and local ownership. The Hydrogen Cities Working Group provides a collaborative platform where cities can co-create solutions, de-risk investment, and ensure the green transition remains inclusive, equitable, and locally anchored.

What to Expect in Mombasa: Scaling Up and Going Deeper

The upcoming workshop in Mombasa will mark a critical shift from strategic visioning to operationalisation and project implementation. Over three days, participants will:

  • Present project updates and refine concepts through structured peer-review and coaching.
  • Engage in interactive sessions on land use, water-energy nexus, and industrial cluster design.
  • Explore innovative financing instruments, including blended finance and PPP models.
  • Participate in hands-on peer-coaching clinics to advance project maturity.
  • Exchange with international experts on policy frameworks, investment pipelines, and market integration.
  • Join a site visit to the Mombasa Port and Special Economic Zone to identify real-world opportunities for green hydrogen applications.

The event will feature keynotes from government and private-sector leaders, expert panels, and networking sessions to strengthen partnerships between African and German municipalities.

Confirmed participants include cities such as Mombasa, Naivasha, Lüderitz, Arandis, Nouakchott, Waterberg District, Hamburg, Karlsruhe, Heilbronn, and Freudenstadt — forming a growing alliance of municipalities championing decentralized, climate-smart hydrogen ecosystems.

Looking Ahead: Cities as Catalysts of a Just Green Economy

As the global energy landscape transforms, cities that act decisively today will become the engines of tomorrow’s green prosperity. The Mombasa workshop represents another milestone in empowering municipalities to lead the hydrogen-powered urban transformation — advancing climate action, economic resilience, and social inclusion in equal measure.

Through the Hydrogen Cities Working Group, Connective Cities continues to bridge continents, connect expertise, and translate ambition into action — ensuring that the hydrogen revolution drives sustainable, locally embedded, and future-ready urban economies.

From Naivasha to Mombasa, cities are demonstrating that the green transition starts locally — and scales globally.

Green Hydrogen for Local Development

Naivasha, Kenya | 14–17 April 2025 – Green hydrogen is gaining global attention as a key energy carrier for the future. While much of the discussion centres on export potential, green hydrogen production also holds significant potential for local development—boosting municipal infrastructure and stimulating local economies, especially in Africa, where the continent’s high potential for solar and wind energy brings African cities in a unique position to become innovation hubs and key drivers in the global energy transition.

To foster exchange of experiences and best practices between African and German cities, Connective Cities organised the workshop “Exploring the Potential of Green Transition for Local Economic Development”, bringing together over 30 municipal professionals from both regions.

The role of cities in promoting green hydrogen

The workshop, which focused on the role of cities in advancing green hydrogen as a lever for sustainable economic growth, facilitated a peer-to-peer learning space for municipal actors to exchange experiences, address challenges, and explore pathways for green hydrogen adoption at the local level.

Municipal strategies and shared challenges

Konferenzraum: Teilnehmende sitzen gruppiert an runden Tischen. Auf dem Plenum sitzen fünf Personen und diskutieren.
Photo: Connective Cities

A central focus of the exchange was how technological innovation can align with local development needs. Discussions ranged from decentralised hydrogen production systems and seawater electrolysis to the use of organic waste as a renewable source. Especially for coastal or water-scarce cities in Africa, such technologies were seen as promising solutions to local resource constraints.

However, participants agreed that technology alone is not enough. Effective local hydrogen strategies require strategic urban planning, transparent land management, and strong community engagement. Several municipalities shared examples of inclusive planning processes, involving traditional authorities and local universities in shaping future-oriented land use plans and infrastructure projects.

Eine Gruppe von zehn Personen sitzen um einen runden tisch und diskutieren intensiv. Im Hintergrund steht eine Metaplan-Tafel.
Peer Learning Session | Photo: Connective Cities

Participants from countries including Namibia, South Africa, Mauritania, Kenya, and Germany presented concrete initiatives demonstrating how hydrogen projects can generate local value. The example of Arandis (Namibia) illustrated how targeted investment and strategic partnerships are enabling the town to position itself as a production hub for green hydrogen. In contrast, the Heilbronn region (Germany) focuses on the application and industrial use of hydrogen, building a regional value chain by attracting user industries and technology providers.

Furthermore, Karlsruhe (Germany) showcased a successful ecosystem for start-ups working in hydrogen technologies, supported by research institutions and public-private partnerships. Across all cases, one message became clear: municipal masterplans and coordinated strategic planning are essential for cities to fully benefit from the emerging hydrogen economy.
The discussions underscored the growing role of cities not only as implementers of national energy goals, but as active shapers of the green transition. The workshop aimed to empower municipalities to position themselves as testing grounds, innovation platforms, and investment destinations within a future green hydrogen economy.

Outlook and next steps

The workshop concluded with a strong call for municipal leadership in developing local hydrogen strategies that reflect both environmental ambitions and socio-economic priorities. Participants identified three key areas for action:

  1. Local value creation: Prioritising domestic use of hydrogen for local industries – such as fertiliser or building materials – rather than relying solely on export models.
  2. Education and skills development: Aligning vocational training and higher education programmes with future labour market needs in the hydrogen sector.
  3. Partnerships and knowledge exchange: Strengthening peer-to-peer learning and cooperation among municipalities through platforms such as Connective Cities.

Participants also highlighted that green hydrogen offers more than energy solutions – it can help create future-oriented jobs, stimulate innovation, and improve urban living conditions. By linking clean energy production with economic development, municipalities can promote both resilience and inclusivity.
The workshop in Naivasha confirmed that green hydrogen can become a key pillar of sustainable urban development – provided that cities take a proactive role. Where political commitment, technical capacity and community participation come together, green hydrogen has the potential to drive long-term prosperity and shared growth.

Gruppenbild mit sechs Teilnehmenden aus Deutschland und Kenia
Photo: Export-Akademie Baden-Württemberg

 

“Whether peer learning sessions, inspiring impulses or practical insights into hydrogen strategies, sustainable mobility and local project development – the variety of formats impressively demonstrated how much potential there is in partnership-based cooperation.“

– Felix Sossalla, Wirtschaftsförderung Raum Heilbronn GmbH (LinkedIn, translated)

 

“We’re looking forward to partnering with more cities, industries, and changemakers who share our vision for a greener, more inclusive future. Let’s create the green cities of tomorrow — together.”

– Export-Akademie Baden-Württemberg (LinkedIn)

Kampala, Karlsruhe and Strasbourg join forces to strengthen social entrepreneurship

All across the world, there are more and more social entrepreneurs combining their business activities with a commitment to the common good – be it climate or environmental protection, social participation or reducing poverty.

For local authorities, this relatively new target group for local economic development agencies has great potential to contribute to sustainable development. But many cities, municipalities and districts are still in the early stages of promoting social entrepreneurship. Kampala in Uganda, Karlsruhe in south-west Germany and Strasbourg in France have joined forces to promote social entrepreneurship in their cities and help entrepreneurs form networks.
 

The Kampala – Karlsruhe – Strasbourg triangle of cooperation

‘I see a great deal of potential for collaboration,’ says Khasalamwa Lucia from the Kampala Capital City Authority (KCCA). Representatives from the three cities have identified that the challenges facing social entrepreneurship are very similar in Kampala, Karlsruhe and Strasbourg – despite their social and economic differences. They each have a lack of needs-based training, mentoring programs, opportunities for exchanging expertise, and start-up financing for (potential) entrepreneurs. Political frameworks such as tax reliefs and suitable legal forms for businesses are also not yet fully developed.

Renewable Energy for Local Economic Development in Africa

The main objective of the workshop is to develop renewable energy projects in African cities.

The workshop was attended by 30 practitioners* from city governments, associations and the private sector representing 7 countries and 20 cities from Africa, as well as high-level guests including the Country Director of GIZ, the Kenyan Ministry of Energy, the head of the Romanian Development Agency (RoAid), the City of Gersthofen from Germany, and officials from the European Investment Bank (EIB) and the African Development Bank (AfDB). Representatives from various cities in Ghana, Kenya, Malawi, Nigeria, Senegal, Tanzania, and Tunisia also contributed to the success of the conference with their presentations of the framework conditions and project examples.

Connective Cities with side event @COP27

Join us on November 12th, 6:30 – 8:00 pm UTC+2, virtually or at the German Pavilion at COP27 – and discuss challenges and solutions to energy supply and energy efficiency in cities.

Cities worldwide face dependence on energy imports and energy supply as well as high prices and price fluctuation due to wars, conflicts, and insecure situations worldwide. The expansion of renewable energies and energy efficiency in urban development are therefore currently gaining further momentum.

How can cities work towards energy autarky? What role can cities play in eliminating energy imports? To what extent can cities and municipalities produce their own energy?

The side-event is organized by Connective Cities and the German Association of Cities (Deutscher Städtetag) and addresses challenges and good practices examples in the fields of:

  • Energy supply and energy consumption of different sectors in cities
  • Good Practices in reducing energy consumption (e.g., nearly zero energy buildings; renewable energy; clean energy)

Keynote: Mrs. Lea Ranalder, UN-Habitat

Panel discussion:      

  • Mr. Andreas Wolter, Mayor, City of Cologne, Germany
  • Mrs. Melanie Grabowy, Mayor, City of Bonn, Germany
  • Mr. Houcine Jrad, Mayor, Municipality Houmt Souk, Tunisia
  • Dr. Georges Youssef, Municipality Menjez, Lebanon
  • Mme Gladys Wanga, Governor County Government of Homa Bay, Kenia

Moderation: Sabine Drees, German Association of Cities

Virtual participation is possible via:  Side Event | Responding Russia´s war: Towards Energy Autarky on a local level (german-climate-pavilion.de)

Voices from Connective Cities – Muncipality of Ras el-Matn

The Mayor of Ras el-Matn municipality talks about how the municipality serves as the lungs of the capital Beirut in Lebanon, mainly due to its distigiushed eco-tourism projects. He also describes the municipality’s partnership with the private sector partner ‘Green Mount Recycling -GMR’ for sustainable waste management. The general director of GMR commended Ras el-Matn municiplaity and elaborates on their partnership project to promote sorting from source, particularly on how gender considerations were integrated into the planning and implementation of the project’s activities. Moreover, the Mayor also describes how the municipality developed a geospatial database with Connective Cities to promote waste sorting. Both speakers confirmed how this project will ultimately have environmental benefits and contribute to climate change mitigation. They also confirmed the benefits of joining Connective Cities network and peer learning particularly on the topic of waste management, as they learned about procedures that other companies are following in different countries such as the Philippines and Brazil using PPP.

Watch video at YouTube:

https://youtu.be/3uixwUwO9W8

Turning social business ideas into reality with yooweedoo

Founders of social start-ups – so-called social entrepreneurs – have a one-stop contact point in Schleswig-Holstein: the yooweedoo programme. Based at Kiel University, yooweedoo facilitates social entrepreneurship with workshops, project advice, an ideas competition and an active network for sharing lessons learned.

Social entrepreneurship enriches municipalities

At the virtual dialogue event held on 20, 21 and 23 September 2021, over 45 participants from 10 countries took a look at social entrepreneurship from a range of municipal perspectives. They found that this rather new target group for local business development has a great deal of potential for municipalities. Innovative examples from Kiel, the municipality hosting the virtual event, as well as from the UK and Uganda, showcased the wide range of funding opportunities and the great benefits that can arise when municipalities and social entrepreneurs work together.

So far, many municipalities have given barely any thought to social entrepreneurship. The dialogue event provided them with a good first impression. The international dialogue and examples from around the world also inspired many participants to take concrete action to promote social entrepreneurship.

Kiel – the true champion of social entrepreneurship

The German City of Kiel is committed to the Agenda 2030 with its 17 SDGs. The sustainibility price in 2021 helped pave the way. Kiel is a true champion of social entrepreneurship promotion. Many sustainability projects evolved with the support of the city and its people. The video presents four outstanding examples from the local entrepreneur scene.

Watch the video at YouTube:

https://youtu.be/pi95yRpKu5U