EU extends €32Mln grant to SA for green hydrogen development

The European Union (EU) has this week extended a €32 million (R626 million) grant to South Africa to help facilitate the development of green hydrogen value chains in line with the country’s goals to establish a viable green hydrogen production industry. 

The grant extension was announced on Monday by the European Union Energy Commissioner Kadri Simson during her meeting with South Africa’s Minister for Energy and Electricity Kgosientsho Ramogkopa, and the Minister for Trade, Industry and Competition (DTIC), Parks Tau.

The grant according to the EU will be channelled through an EU Member State financial institution, and will help leverage R10 billion in private and public sector finance across the hydrogen value chain, covering production, transportation, storage and downstream industries. 

“The announcement today marks a significant milestone in the European Union’s partnership with South Africa, and shows the EU Global Gateway strategy in action, boosting smart, clean and secure connections in the energy and transport sections,” said EU Commissioner for Energy, Kadri Simson.

“Our cooperation in support of South Africa’s green hydrogen agenda aims to accelerate the green transition, drive sustainable development, create new economic opportunities, and build a more sustainable future for the region,” Simson added.

The EU highlighted that the grant is designed to leverage substantial additional funding and investment across the hydrogen value chain from the point of production to transportation and storage, and downstream industries. 

Additionally, the EU says it will seek to increase local value addition in green hydrogen in South Africa and help support the country with its goals to move up higher in the green hydrogen value chain. The bloc also said it will support efforts toward the creation of a regional green hydrogen hub in the Southern Africa region.