South Africa identifies six priority green H2 projects

Market: Hydrogen
16/09/26

South Africa has identified six projects for the first wave of its national renewable hydrogen programme, narrowing its focus to developments spanning e-sustainable aviation fuel (e-SAF), renewable ammonia, methanol, iron and domestic hydrogen applications as it seeks to move projects closer to final investment decisions (FIDs).

The projects were chosen through a process aimed at improving bankability and investor confidence, electricity and energy minister Kgosientsho Ramokgopa told the Africa Green Hydrogen Summit in Cape Town on behalf of president Cyril Ramaphosa on 15 September.

The priority-project designation would provide a mechanism for government and development partners to help the projects advance towards FID, construction and production, he said. A second wave of projects is expected to follow, he added.

The most advanced project is Phelan Green's e-SAF facility in Saldanha Bay, which has already reached FID after securing an offtake agreement and a $100mn equity commitment, according to the government. Construction is expected to begin in the first quarter of 2027, with first exports targeted for first quarter of 2029.

The plant is intended to produce 35,000 t/yr of synthetic aviation fuel using 200MW of alkaline electrolysers supplied by Sungrow Hydrogen, supported by dedicated solar, wind and battery storage capacity.

The $5.8bn Coega renewable ammonia project in the Eastern Cape has also been identified as a priority initiative. The government said developer Hive Hydrogen has completed early preparatory work but the project still requires further commercial, technical and financing development before reaching FID.

Hive Hydrogen is targeting production of 1mn t/yr of renewable ammonia for export markets and has previously estimated output costs of $642-719/t fob from the port of Ngqura. The project has secured development support from South Africa's SA-H2 Fund.

The government's priority list also includes the Saldanha hydrogen direct reduced iron project, which remains at pre-feasibility stage and aims to link renewable hydrogen production with lower-emissions iron and steel manufacturing.

The Prieska power reserve project in the Northern Cape, a renewable ammonia development targeting domestic demand, is developed by a consortium comprising Mahlako A Phahla, the Industrial Development Corporation (IDC) and Central Energy Corporation (CENEC), and was originally conceived as one of South Africa's first renewable hydrogen and ammonia developments. The project is targeting 72,000 t/yr of renewable ammonia production using 180MW of solar capacity, 130MW of onshore wind and 129.4MWh of battery storage, according to project management firm SMEC.

A fifth project, the Green e-Fuels Producers Green Methanol Corridor, targets European demand and is at the pre-feasibility stage. Green e-Fuels Producers earlier this year secured up to $4mn in development funding from the SA-H2 Fund for the facility at Gauteng province that would convert municipal sewage sludge into around 14,300 t/yr of green methanol using a 10MW electrolyser and renewable power.

The sixth project, Green Hydrogen Solutions, is focused primarily on South African demand and has completed front-end engineering and design work, but the government did not provide further details on the scope or timeline.

Africa has a pipeline of 31 renewable hydrogen projects that could together produce around 1.2mn t/yr of hydrogen, the IEA said in June. But progress remains slow, with only around 2pc of the planned capacity having reached final investment decision, the watchdog said.

By Anmol Choubey

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28/09/26

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London, 28 September (Argus) — The European Economic Area (EEA) committee has now included the EU's carbon border adjustment mechanism (CBAM) in the EEA agreement, enabling the scheme to apply in Norway and Iceland, the Norwegian government said. "CBAM is one step closer to coming into force in Norway," climate and environment minister Sigrun Aasland said. The country's parliament in June adopted legislation to introduce CBAM. Norway aims to apply CBAM "in full" from 2027, it said, which would require importers to submit their first declarations in 2028 for goods imported in 2027. The Icelandic parliament must still approve the incorporation before CBAM can take effect there. The measure is being taken as "quickly as possible", the government said, adding that it is in close contact with Iceland's authorities. The EU fully launched CBAM at the start of this year. The mechanism imposes a carbon price on certain goods imported to the bloc in the cement, aluminium, fertiliser, iron and steel, hydrogen and electricity sectors. It aims to tackle carbon leakage, whereby firms relocate to avoid carbon costs or more carbon-intensive imports displace EU products. Norway, along with fellow EEA countries Iceland and Liechtenstein, is subject to carbon costs in CBAM sectors under the EU emissions trading system. By Kiara Campagne Nieva Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Uniper agrees 40,000 t/yr e-SAF offtake with Arcadia

23/09/26

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23/09/26

Uniper agrees 40,000 t/yr e-SAF offtake with Arcadia

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Cautious optimism on German decarbonisation

18/09/26

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18/09/26

Cautious optimism on German decarbonisation

Berlin, 18 September (Argus) — German government officials have voiced cautious optimism about financing the country's industrial decarbonisation, as the economy ministry this week disclosed the results of its €5bn ($5.7bn) tender for carbon contracts for difference. Germany's government is advancing in its aim to get more private capital involved in the green transformation, finance ministry official Anna Klabunde said at an industry event in Gelsenkirchen this week. Klabunde, who is head of the ministry's sustainability, decarbonisation and carbon pricing unit, flagged the three new programmes launched or planned by the government's "Germany fund", under the auspices of state-held bank KfW, that are designed to make it easier for private-sector investors to get involved. The first of the programmes is an investment loan scheme for energy supply, aimed at district heating and cooling networks. The second is a hedging instrument for "industries in transition". 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Masdar exits OMV’s Austrian 140MW green H2 project

18/09/26

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18/09/26

Masdar exits OMV’s Austrian 140MW green H2 project

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EU parliament rejects CBAM suspension clause: Update

15/09/26

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15/09/26

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