SA gets R628m from EU for green hydrogen energy

Initiative supports the country’s broader sustainability goals

11 September 2024 - 06:00
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Minister for electricity and energy Kgosientsho Ramokgopa. File photo.
Minister for electricity and energy Kgosientsho Ramokgopa. File photo.
Image: Freddy Mavunda

In a significant boost to South Africa’s green hydrogen agenda, the EU has announced two major grants totalling R628m (€32m).

The initiative aims to accelerate the development of South Africa’s green hydrogen infrastructure and supports the country’s broader sustainability goals.

The announcement was made by EU commissioner for energy Kadri Simson, South Africa’s minister for electricity and energy Kgosientsho Ramokgopa and minister of the department of trade, industry and competition Parks Tau this week.

The first grant, amounting to R490m (€25m), is designed to stimulate investments in green hydrogen infrastructure. This funding is expected to attract an additional R10bn in private and public sector finance.

It will cover various aspects of the hydrogen value chain, including production, transportation, storage and downstream industries. The goal of this contribution is to enhance South Africa’s green hydrogen sector by reducing global greenhouse gas emissions, promoting local economic growth and creating job opportunities.

The EU’s investment will also foster the development of a regional green hydrogen hub in Southern Africa.

The second grant of R138m (€7m) will be directed towards assisting Transnet in its green hydrogen transformation. This funding, channelled through AFD, aims to support Transnet’s efforts to achieve net-zero emissions by 2040.

The grant will fund studies, pilot projects and technical assistance related to the production and storage of low-carbon hydrogen, and will help structure Transnet's green hydrogen strategy. The departments emphasised that Transnet’s role is crucial across the hydrogen value chain and for both domestic and export markets.

Commissioner Kadri Simson expressed enthusiasm for the initiative.

“The announcement marks a significant milestone in the EU's partnership with South Africa. It demonstrates the EU Global Gateway strategy in action, boosting smart, clean and secure connections in the energy and transport sectors. Our co-operation aims to accelerate the green transition, drive sustainable development and create new economic opportunities.”

Here are some reactions to the announcement:

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