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.

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.

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.

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