The European Union has announced two grants totaling €32 million to aid South Africa in establishing its green hydrogen industry. The funding is set to leverage the country's abundant wind and solar resources to produce green hydrogen, a clean fuel option aimed at reducing carbon emissions from shipping and heavy industrial activities. Despite countries like South Africa, Namibia, Egypt, and Chile positioning themselves to produce green hydrogen, the cost competitiveness with oil derivatives remains a challenge. However, with improving technology and increasing penalties on fossil fuel usage, the feasibility of green hydrogen is anticipated to improve. The grants are part of the EU's efforts to support South Africa's transition towards sustainable energy solutions, separate from the existing Just Energy Transition Partnership. The focus will be on investing in the green hydrogen value chain, with plans to work with local institutions like Transnet SOC Ltd. to develop hydrogen infrastructure. The move is expected to not only drive environmental benefits but also contribute to the local economy by attracting further investments in climate-resilient projects.