From Strategy to Scalable Deployment
The Demonstration Hydrogen Zones represent the operational bridge between regulatory design and commercial scale hydrogen markets. They serve as controlled deployment environments where production, storage, transport, certification, and end use applications are integrated and validated.
Hosted under the COMESA Centre of Excellence on Green Hydrogen, these zones translate regional policy harmonization into physical infrastructure and industrial decarbonization outcomes.
Strategic Purpose
Hydrogen markets require early proof of technical, regulatory, and commercial viability before large scale private capital can be mobilized.
The Demonstration Zones are designed to:
- Validate hydrogen production under regional renewable conditions
• Test grid integration and flexible load management
• Demonstrate storage and handling safety standards
• Pilot industrial substitution of fossil fuels
• Operationalize carbon certification systems
• Reduce perceived investment risk
These zones provide the evidence base required for scaling across Member States.
Structural Design of a Hydrogen Zone
Each Demonstration Zone integrates five core components:
- Renewable Energy Coupling
Dedicated or grid connected renewable generation, including solar, wind, hydropower, or hybrid systems, supplying electricity for electrolysis.
Focus areas:
- High capacity factor generation
• Grid stability coordination
• Curtailment absorption
• Dispatch optimization
- Electrolysis and Production Infrastructure
Installation of electrolyzers and balance of plant systems, including:
- Water treatment systems
• Compression equipment
• Control and monitoring systems
• Safety compliance mechanisms
Electrolyzers may operate as flexible loads, contributing to regional grid balancing.
- Storage and Handling Systems
Hydrogen storage and logistics infrastructure, including:
- Compressed gas storage
• Liquid hydrogen systems where viable
• Ammonia conversion for transport
• Pipeline interconnection where feasible
Safety and technical standards will be aligned under the Regional Hydrogen Regulatory Framework coordinated through Regional Association of Energy Regulators for Eastern and Southern Africa.
- Industrial and Mobility End Use
Pilot deployment across strategic sectors:
- Fertilizer production through green ammonia
• Hydrogen based direct reduced iron
• Mining fleet decarbonization
• Heavy duty transport corridors
• Backup power and microgrid applications
These applications create immediate domestic demand signals and demonstrate industrial decarbonization feasibility.
- Certification and Traceability Integration
Each zone will be fully integrated with the regional hydrogen certification and Guarantees of Origin system, ensuring:
- Carbon intensity tracking
• Digital registry integration
• Independent verification
• Export compliance readiness
This ensures that demonstration projects are market aligned from inception.
Geographic Typologies
Demonstration Zones will be structured around three potential typologies:
Port Export Corridor Zones
Located near major maritime gateways, enabling:
- Ammonia production for export
• Hydrogen derivative conversion
• International trade integration
Industrial Cluster Zones
Located near existing heavy industry hubs, enabling:
- Decarbonization of fertilizer, steel, and cement
• Direct hydrogen substitution
• Industrial value chain integration
Mining and Off Grid Zones
Located near mining operations and remote industrial sites, enabling:
- Diesel replacement
• Off grid hydrogen microgrids
• Energy security enhancement
Phased Development Approach
Phase I
Feasibility and site selection studies including:
- Renewable resource mapping
• Water availability assessments
• Infrastructure connectivity analysis
• Environmental and social screening
Phase II
Pilot installation and operational validation:
- Commissioning of electrolysis systems
• Integration with certification registry
• Industrial end use pilots
Phase III
Commercial scale expansion:
- Capacity scaling
• Infrastructure extension
• Private sector participation
• Long term offtake agreements
Expected Outcomes
The Demonstration Hydrogen Zones will deliver:
- 2 to 3 operational hydrogen hubs
• Validated deployment models
• Integrated certification systems
• Reduced technology and market risk
• Structured investment pipeline
• Industrial carbon intensity reduction
They form a critical component of the broader 5 GW hydrogen project pipeline envisioned in the Concept Note
Institutional Coordination
The Demonstration Zones are coordinated through the COMESA Centre of Excellence on Green Hydrogen and hosted within the regulatory harmonization framework of Regional Association of Energy Regulators for Eastern and Southern Africa.
This ensures:
- Alignment with regional electricity market rules
• Regulatory interoperability across borders
• Certification consistency
• Structured engagement with development finance institutions
• Scalable replication across Member States
Strategic Role in Market Development
Demonstration Zones are not isolated pilot projects. They are structured de risking platforms.
They convert:
Regulatory readiness into operational credibility.
Technical theory into validated performance data.
Policy ambition into investment grade assets.
By integrating renewable generation, electrolysis, industrial demand, certification systems, and structured finance, these zones create the foundation for a competitive and scalable regional hydrogen economy.
