Green hydrogen: EU grants to spur sector in SA, Transnet development

outh Africa has received grants from the European Union (EU) in support of the country’s green hydrogen agenda as well as for Transnet’s green transformation plan.

The two grants total R628 million (around $35.1m).

The bulk of the money – R490m ($27.4m) – is expected to leverage R10 billion (around $560m) in private and public sector finance across the hydrogen value chain, covering production, transportation, storage and downstream industries.?

The remaining R138m (around $7.7m) is to assist Transnet in its turn-around strategy.

It is expected to leverage additional funding for the green transformation of Transnet’s core operational areas, including ports, rail, pipeline, engineering and related facilities.?

The European Commissioner for Energy Kadri Simson, South Africa’s Minister for Electricity and Energy Kgosientsho Ramokgopa and Minister of Department of Trade, Industry and Competition Parks Tau made the announcement on Monday.

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Simson said the funding is to support South Africa’s green hydrogen agenda and aims to accelerate the green transition, drive sustainable development, create new economic opportunities, and build a more sustainable future for the region.?

Grants to help drive investment in green hydrogen in South Africa

The partnership is targeting efforts to build more renewable energy infrastructure, improve energy efficiency, and promote sustainable practices.?

By investing in clean energy projects and providing technical expertise, the EU and its Member States have pledged its support to South Africa “in making the most of its green potential, promoting sustainable economic development and directly benefitting South Africans.”

The main objective is to increase investments in green hydrogen infrastructure and contribute to:?

1. Reducing global greenhouse emissions, notably in sectors where this is particularly challenging. ?
2. Promoting local development and economic growth by creating jobs, providing water treatment, and increasing access to (green) energy.?

Through the development of sustainable green hydrogen value chains, the EU contribution will seek to increase local value addition and, thereby, to support South Africa to move up higher in these value chains.?

Also, it will support efforts toward the creation of a regional green hydrogen hub in the Southern Africa region.?

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Green hydrogen plan for SA’s ports

The Transnet funding is to assist the freight and logistics operator in furthering its green hydrogen ambitions.?

In October 2023, Transnet National Ports Authority (TNPA)?issued a Request for Information (RFI)?for the development of a terminal facility and related facilities for hydrogen initiatives at its commercial seaports.?

The RFI assesses market interest in developing, designing, constructing, financing, operating, and maintaining an import and export terminal for?hydrogen?initiatives.?

This includes green hydrogen, green ammonia, green methanol, and or grey hydrogen at the ports of Cape Town, Durban, East London, Mossel Bay, Ngqura, Gqeberha (Port Elizabeth), and Saldanha.?

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The EU grant to Transnet will be channelled through the Agence Fran?aise de Développement (AFD).

It is to support the development of a green hydrogen ecosystem in South Africa and?to help Transnet towards its goal of achieving net-zero emissions by 2040.?

The project will support activities around Transnet’s core operational areas related in particular to:?

1. Executing studies (market, legal and feasibility studies as well as impact assessments) and pilot projects focused on the production and storage of low-carbon hydrogen.
2. Mobilising technical assistance to structure Transnet’s green hydrogen strategy and allow for the scaling up of green hydrogen projects in South Africa.?

The grant will help Transnet meets its own internal commitments as well as government’s initiatives relating to the Hydrogen Society Roadmap.?

This year, Transnet has received loans from the Africa Development Bank (AfDB) and more recently from the BRICS constituted New Development Bank to assist it in its recovery programme.

Read more at ESI-Africa.com