The European Union has announced providing two grants totaling €32 million to assist South Africa in kick-starting its green hydrogen industry. Kadri Simson, Europe's energy commissioner, highlighted that these grants are aimed at helping South Africa harness its abundant wind and solar resources to produce green hydrogen. This form of hydrogen, produced by splitting water using renewable energy, is viewed as a promising clean alternative to traditional fossil fuels in powering ships and heavy industry. Despite the current higher costs compared to oil derivatives, there is optimism that as technology advances and penalties on fossil fuel usage increase, green hydrogen will become more competitive. The grants are intended to be implemented in a way that supports the local economy and promotes further public and private investments in addressing climate change. One of the grants, valued at €7 million, will be utilized by Transnet to conduct studies and pilot projects focusing on hydrogen production and storage. This initiative is expected to play a pivotal role across the hydrogen value chain for both domestic and export markets. The funding from the EU's budget is distinct from the US$9.3 billion Just Energy Transition Partnership and signifies a concerted effort to advance South Africa's green hydrogen sector. Similar support has been extended to countries like Namibia, reflecting a broader commitment to promoting sustainable energy solutions. The collaboration between the EU, South Africa, and development finance institutions underscores the collective efforts towards leveraging green hydrogen as a vital component in transitioning towards a more sustainable and environmentally friendly energy landscape.