South Africa’s first large-scale green ammonia project has secured a development funding commitment of up to R370 million (US$20 million) from the SA-H2 Fund. This was announced at South Africa’s Green Hydrogen Summit in Cape Town yesterday (June 11).
SA-H2 is a blended finance fund launched in mid-2023 to accelerate green hydrogen infrastructure in South Africa. It pools public and private capital – backed by Climate Fund Managers, Invest International, Sanlam, the Development Bank of Southern Africa and the Industrial Development Corporation.
According to a joint press release, the funding will support the final development phase of the Hive Hydrogen Coega Green Ammonia Project, a planned one million tonne per year green ammonia production facility in the Coega Special Economic Zone near Gqeberha, Eastern Cape. The plant will be powered by 3,6 GW of renewable energy (2,4 GW of wind and 1,2 GW of solar PV) feeding a 1,2 GW electrolyser. It is expected to avoid 2,6 million tonnes of CO₂e emissions annually by displacing fossil fuel-derived ammonia with all output aimed at global markets.
The facility is being developed by Hive Hydrogen South Africa, a joint venture between UK-based Hive Energy and South Africa’s BuiltAfrica.
The development funding will cover engineering design, environmental and social assessments, permitting, offtake finalisation and preparation for financial close. SA-H2 has also secured the option to invest up to R3,7 billion (US$200 million) during the construction phase.
Commercial operations are targeted to begin in 2029.
