Emerging South African green hydrogen company, Prieska Power Reserve, has secured project development funding from the Industrial Development Corporation (IDC) to advance its green hydrogen project in Prieska, in the Northern Cape province of South Africa.
The Prieska green hydrogen plant will produce green hydrogen and green ammonia for the export market, and potentially for the local market as well.
According to Prieska Power Reserve, IDC’s funding will ensure that the project reaches financial close in H1 2023 – a significant milestone since the beginning of the project’s journey in 2018.
“We are thrilled to partner with the IDC”, said Meta Mhlarhi, Director of Prieska Power Reserve. “The dynamic combination of experience and talent has the potential to contribute not just to South Africa’s energy security through innovative sources such as Hydrogen, but also the economic recovery and growth of our country.”
The Prieska green hydrogen production plant will produce 72000 tonnes of green ammonia per year in the first phase. The facility will produce an estimated 12 900 tonnes of green hydrogen from 2025, escalating to over 500 000 by 2030.
Prieska Power Reserve has revealed that the green hydrogen project has achieved some critical milestones that informs its targeted financial close of H1 2023.
“Some of the completed milestones include the chemical plant, the wind, solar and micro-grid feasibility studies, which indicate a huge potential for the project”, stated Martin Walzer, Director of Prieska Power Reserve. “The project is currently also in the process of finalising technical design work.”
“It is through partnerships such as the one with IDC that we are able to further progress our work,” added Walzer.
Job creation potential of the green hydrogen project
The Prieska green hydrogen project has been identified as Strategic in the Northern Cape’s Green Hydrogen strategy, and has undergone the process of achieving classification as a National Strategic Infrastructure Project (SIPs), which is currently awaiting gazetting.
“Prieska Power Reserve will catalyse a collaborative approach between business, the province and national government in achieving the country’s hydrogen goal and position the Northern Cape as a hydrogen hub,” said Makole Mupita, Director of Prieska Power Reserve.
The project is also expected to significantly impact South Africa’s economy through job creation. “With this agreement, we look forward to creating jobs, establishing and growing new enterprises, particularly for women and youth, to fulfil the increasing demand for this new industry,” Cobus Vermeulen, Prieska Power Reserve Director said.
“Through meaningful efforts and partnerships with a shared goal for sustainability, the transition to a low carbon future is possible in the near future, we are excited to walk this journey with the IDC,” said Meta Mhlarhi, Director of Prieska Power Reserve.
“Through meaningful efforts and partnerships with a shared goal for sustainability, the transition to a low carbon future is possible in the near future, we are excited to walk this journey with the IDC,” added Mhlarhi.
African women-owned investment company Mahlako a Phahla Investments, has a significant equity interest in the Prieska Power Reserve project.