EU Grants Boost South Africa's Green Hydrogen Agenda
Key Ideas
  • The EU has announced two grants totaling R628m (€32m) to accelerate the development of South Africa's green hydrogen infrastructure and support broader sustainability goals.
  • The first grant of R490m (€25m) aims to stimulate investments in green hydrogen infrastructure, attracting an additional R10bn in finance to cover production, transportation, storage, and downstream industries.
  • The second grant of R138m (€7m) will assist Transnet in its green hydrogen transformation, supporting their net-zero emissions goal by 2040 through studies, pilot projects, and technical assistance.
  • Commissioner Kadri Simson highlighted the significance of the partnership, emphasizing the acceleration of the green transition, sustainable development, and creation of economic opportunities.
In a significant development for South Africa's green hydrogen agenda, the EU has unveiled two major grants amounting to R628m (€32m). The grants are aimed at fast-tracking the progress of green hydrogen infrastructure in the country while aligning with its sustainability objectives. These grants were announced by EU commissioner for energy Kadri Simson, South Africa's minister for electricity and energy Kgosientsho Ramokgopa, and minister of the department of trade, industry, and competition Parks Tau. The first grant, totaling R490m (€25m), is focused on attracting investments in green hydrogen infrastructure to the tune of an additional R10bn, covering various aspects of the hydrogen value chain. This move is expected to bolster South Africa's green hydrogen sector, reduce global greenhouse gas emissions, drive local economic growth, and generate employment opportunities. Additionally, the EU's investment will play a crucial role in establishing a regional green hydrogen hub in Southern Africa. The second grant of R138m (€7m) is designated to aid Transnet in its green hydrogen transition, supporting the company's target of achieving net-zero emissions by 2040. Through financing studies, pilot projects, and technical support related to low-carbon hydrogen production and storage, the grant will assist in shaping Transnet's green hydrogen strategy. The importance of Transnet across the hydrogen value chain, serving domestic and export markets, was highlighted by the involved departments. Commissioner Kadri Simson expressed enthusiasm for the collaboration, underscoring its role in advancing the green transition, sustainable development, and creating fresh economic prospects. The grants represent a significant step towards fostering a more sustainable and environmentally friendly energy landscape in South Africa, while also contributing to global emission reduction efforts.
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