The European Union has committed to providing two grants totaling €32 million to support South Africa in establishing its green hydrogen industry. This initiative aims to capitalize on South Africa's abundant wind and solar resources to produce green hydrogen as a cleaner alternative to fossil fuels in the maritime and heavy industry sectors. Despite the current cost challenges that green hydrogen faces in competing with oil derivatives, there is optimism that advancements in technology and increasing penalties on fossil fuel usage will make green hydrogen more economically viable in the future. The grants, separate from the Just Energy Transition Partnership, are intended to stimulate investments in hydrogen production, storage, and transportation. The larger grant of €25 million is expected to attract around 10 billion rand in public and private investments to the hydrogen sector. The funds will be managed through an EU member state financial institution to ensure effective allocation and utilization. Furthermore, a €7 million grant will be allocated to Transnet SOC Ltd., the state ports and rail company, to conduct studies and pilot projects related to hydrogen production and storage. This investment is crucial for Transnet to contribute significantly to the hydrogen value chain within its operations and both domestic and export markets. The European Union's support is part of a broader effort to facilitate the transition to clean energy and combat climate change, with a focus on driving sustainable economic growth in South Africa's green hydrogen sector.