German renewables developer, PNE AG, is set to develop a 1-GW green hydrogen project for e-fuels production in the west coast of South Africa, in partnership with Hamburg based energy trading company, S.E.T Select Energy GmbH.
The two companies signed a memorandum of understanding last week in Hamburg Germany that will pave the way for the development of the project.
According to the parties, the project is to produce up to 500,000 tons of e-fuels per year from green hydrogen, produced via an electrolyser with a nominal capacity of 1 GW, powered by wind and solar energy.
“We are looking forward to working with SET on this groundbreaking project. It shows once again that climate protection must be considered and managed globally. In addition, it is the second power-to-X project for us in South Africa and a further milestone in the implementation of our corporate strategy,” said Markus Lesser, PNE’s Chief Executive Officer (CEO).
Due to limited fresh water resources in South Africa, the project will use desalinated sea water for electrolysis to produce green hydrogen.
“Green energy supply is becoming increasingly global: the planned project in South Africa shows how the energy transition works and is interlinked across national borders and continents. South Africa as a location for renewable energies and export logistics represents an advantage that makes e-fuels available to both local and international customers,” said York zu Dohna, the Co-CEO of SET.
Demonstrating economic viability of e-fuels
PNE and SET said that their partnership on the project is intended to demonstrate the economic viability of marketing of the green e-fuels to potential customers, and ensure that the e-fuels meet market demands.
“We are pleased to accompany PNE as a trading and logistics partner in this exciting project. As an energy trading company, we are predestined to also bring new energy sources economically and flexibly from the producer to the consumer,” added York zu Dohna, the Co-CEO of SET.
PNE also highlighted that the involvement of a retailer like SET at this early stage supports the feasibility of the project and ensures sustainability. SET and the South African PNE subsidiary WKN Windcurrent are currently evaluating the logistic options and the availability of raw materials and products in the pre-feasibility phase.
