South Africa's Major Hydrogen Investment Attracts Japanese Investors
Key Ideas
- Senior officials from top Japanese companies and government agencies are considering investing in South Africa's largest green hydrogen project in Eastern Cape province.
- The project by Hive Energy aims to produce 1 million tons of hydrogen per year, targeting markets in Japan and South Korea initially.
- The use of ammonia, derived from green hydrogen, is planned for decarbonizing heavy industry, shipping, and potentially power plants.
- The plant could expand in size over time, with funding sought from international entities in Germany, Denmark, and the Netherlands.
South Africa's biggest hydrogen project is attracting Japanese investors as senior officials from top Japanese companies and government agencies are evaluating the potential investment in the project located in Gqeberha, Eastern Cape province. The project by Hive Energy aims to produce 1 million tons of hydrogen annually, with a focus on decarbonizing heavy industry and shipping. The project is seen as one of the most advanced initiatives to produce green hydrogen in South Africa. Notable companies like ArcelorMittal SA and Sasol Ltd. are considering utilizing green hydrogen for their projects, with potential for using ammonia derived from hydrogen in various sectors. The plant plans to use 3,700 megawatts of renewable power to produce hydrogen and then convert it into ammonia for export markets. The project has garnered interest from international entities in Germany, Denmark, and the Netherlands for funding. Despite the current higher costs compared to conventional fuels, there is optimism about cost reduction with technological advancements and increasing regulatory pressure on fossil fuels.