The European Union has announced two grants totaling €32 million to support the development of South Africa's green hydrogen industry. These grants are aimed at leveraging the country's vast wind and solar resources to produce green hydrogen, which is considered a cleaner alternative to fossil fuels for industries like shipping and heavy manufacturing. The grants will target investments in hydrogen production, storage, and transportation in South Africa. Despite current challenges related to the cost competitiveness of green hydrogen compared to oil derivatives, there is optimism that advancements in technology and increasing penalties on fossil fuels will make green hydrogen more economically viable in the future. The European Union emphasized that these grants will contribute to the South African economy and attract further public and private investments. The funds will be disbursed in collaboration with global development finance institutions and European public funds, with a focus on promoting sustainable energy transitions. Transnet SOC Ltd., the state ports and rail company, will receive €7 million for studies and pilot projects related to hydrogen production and storage. The EU and South Africa see Transnet playing a crucial role in the hydrogen value chain for both domestic and export markets. Overall, the grants highlight a positive step towards fostering green hydrogen initiatives in South Africa, with the potential for significant economic and environmental benefits.