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South Africa racing to establish a green hydrogen sector for the export market.

Green Hydrogen

Germany chips in €12.5M to support South Africa’s green hydrogen plans

Funds to go towards a project which aims to support the development of a favourable strategic and regulatory framework for a green hydrogen economy in South Africa

The German Federal Ministry of Economic Cooperation and Development, and South Africa’s government are collaborating in a project that seeks to promote the development of a green hydrogen sector in the Southern Africa country. This is according to remarks by Mondli Gungubele, South Africa’s Minister in the Presidency during a stakeholder engagement held at Port Nolloth, near Boegoebaai in the Northern Cape.

Germany will extend at least €12.5 million in grant funding towards the project which will be led by South Africa’s Presidency Department, in collaboration with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) – an agency of the German Federal Ministry of Economic Cooperation and Development.

The project aims to support the development of a favourable strategic and regulatory framework for a green hydrogen economy in South Africa, as well as coordinate contributions from different government departments and stakeholders for such a framework. 

Part of the project’s objectives include enabling relevant actors and investors to build green hydrogen projects for the export economy, and enhance capacity and knowledge of South African stakeholders in the green hydrogen and powerfuels sector. The initiative will also analyse the potential implications of a green hydrogen and powerfuels economy on the environment, society, and the economy.

SA Presidency backs Sasol – H2Global projects

Minister Gungubele mentioned that the Investment and Infrastructure Office in the Presidency has pledged its support to a project by energy giant, Sasol, and the German government supported H2Global initiative to produce sustainable aviation fuel to the international community.

He explained that the Infrastructure Office’s assessment of the project found that it has the potential to “contribute to a just [energy] transition” and to create “quality green jobs”.

“The German government through its H2Global initiative has created a sustainable aviation fuel market trading platform which is intended to provide funding to green hydrogen products globally. South Africa has the potential to become a global sustainable aviation fuel (SAF) hub due to our renewable endowment and Fischer-Tropsch technology capabilities. Sasol is working with a number of local and international partners on a pioneering sustainable aviation fuel project at the Sasol Secunda facility.”

“Due to its catalytic nature and its potential to contribute to a just transition, the Investment and Infrastructure Office submitted a letter of support to H2Global for the Sasol Consortium’s SAF project,” Minister Gungubele concluded.

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