The European Union (EU) has pledged R628 million in grants to support South Africas initiatives for green hydrogen, aimed at accelerating the countrys green industrialisation.
The announcement was made following meetings on Monday, September 9 with Kardi Simson , the European Unions Energy Commissioner, and the Ministers of Electricity and Energy, Kgosientsho Ramokgopa , and of Trade, Industry, and Competition, Ebrahim Patel to discuss the ongoing collaboration between the EU and South Africa regarding the just energy transition and the sustainable development of strategic value chains.
The first grant, valued at R490 million, is expected to attract R10 billion in private and public sector investment across South Africas nascent green hydrogen ecosystem.This funding will cover green hydrogen production, transportation, storage, and downstream industries, accelerating the countrys shift to sustainable energy sources.
The second grant, amounting to R138 million, is targeted at supporting South Africas national freight logistics company, Transnet, as part of its turnaround strategy. This funding will facilitate the green transformation of Transnets core operations, including ports, rail, pipelines, engineering, and related facilities.
The R138 million grant will specifically enhance the AFD-Transnet Green Hydrogen Project, a collaboration with the French Development Agency (AFD), aimed at building a green hydrogen ecosystem in South Africa. The project will help Transnet achieve its net-zero emissions target by 2040, supporting pilot initiatives focused on low-carbon hydrogen production and storage. It will also provide technical assistance to shape Transnets green hydrogen strategy and scale up related projects.
The EUs investment will advance South Africas green hydrogen value chain, from mineral extraction to end-use applications, Ramokgopa said. Green hydrogen will enable us to significantly contribute to GDP growth while reskilling and upskilling our workforce for participation in a transitioning economy.
We are not new to this space; we have the necessary technology. We are now configuring the fuel sources to support hydrogen production, Ramokgopa said.
These minerals will be key inputs into the electrolysers used to produce green hydrogen, allowing us to advance these projects and benefit as a country. We welcome this investment as it opens a new frontier.
This announcement marks a milestone in the EUs collaboration with South Africa, particularly in support of the country's green hydrogen ambitions. It showcases the EU Global Gateway strategy in action, promoting smart, clean, and secure energy and transport connections. By investing in clean energy projects and providing technical expertise, the EU is supporting South Africa in maximising its green potential, said EU Commissioner Kadri Simson .
Sign up to receive our newsletters and magazine free - click here.
