The European Union has pledged to provide two grants totaling €32 million ($35 million) to support South Africa in developing its green hydrogen industry. This initiative, announced by Kadri Simson, the European energy commissioner, aims to leverage South Africa's abundant wind and solar resources for producing green hydrogen as a cleaner alternative to conventional fossil fuels used in maritime transport and heavy industries. Green hydrogen is generated by splitting water using renewable energy sources, resulting in hydrogen that can be burned without contributing to greenhouse gas emissions. Although countries like South Africa, Namibia, Egypt, and Chile are positioning themselves to produce green hydrogen, current costs are prohibitive compared to oil derivatives. However, as technology improves and penalties on fossil fuel usage increase, the competitiveness of green hydrogen is expected to rise. The EU grants will be instrumental in fostering local economic growth and attracting additional investments in South Africa's green hydrogen value chain. Kgosientsho Ramokgopa, South Africa's energy minister, highlighted that the funding will support Transnet SOC Ltd., a state-run entity managing ports and pipelines, in developing hydrogen ports and related infrastructure. The EU's contribution is separate from the $9.3 billion Just Energy Transition Partnership, a climate finance agreement between South Africa and wealthy nations. This collaboration not only aims to spur the green hydrogen industry in South Africa but also to advance the country's efforts in combating climate change and promoting sustainable economic development.