The European Union (EU) recently committed €32 million (about R628 million) to help South Africa develop its green hydrogen industry.
The funding comes through two grants aimed at boosting the country’s renewable energy potential, focusing on wind and solar power.
The support is part of the EU’s Global Gateway strategy, which aims to drive sustainable growth and energy security with partner countries.
The first grant, worth €25 million (R490 million), is intended to attract further investments of around R10 billion from both the private and public sectors.
The funding will go towards building a full hydrogen value chain—from production to transport, storage and downstream industries.
South Africa hopes that developing green hydrogen infrastructure will support its move toward cleaner energy and help it meet decarbonization goals.
The second grant, valued at €7 million, will support Transnet, South Africa’s state-owned logistics company, in its green transformation.
The grant will be used to improve infrastructure in ports, railways, and pipelines, helping to transport and export green hydrogen efficiently.
Transnet aims to reach net-zero emissions by 2040, and this funding is an important step in aligning its operations with national sustainability goals.
EU Energy Commissioner Kadri Simson described these grants as a milestone in the EU-South Africa partnership, underscoring a shared commitment to sustainable development and climate action.
The EU aims to support South Africa not just with funding but with technical expertise, helping the country tap into its green potential and create new economic opportunities.
Green hydrogen is produced by splitting water using renewable energy, creating a clean fuel that doesn’t release greenhouse gases.
South Africa’s government sees green hydrogen as a valuable fuel for cutting carbon emissions and promoting industrial growth.
While the EU grants are a positive start, experts note that much more funding will be needed to fully establish a green hydrogen industry in South Africa.
It’s estimated that around €20 billion would be required to build a strong green hydrogen sector, which means more local and international support will be essential.
For South Africa, creating a green hydrogen ecosystem could help address its ongoing energy challenges, which include frequent power outages and a heavy reliance on coal.
Developing green hydrogen could stabilize the energy supply and bring jobs and economic growth.
By helping South Africa build this emerging sector, the EUaims to support the country’s transition to cleaner energy and address climate challenges.
As these projects develop, they promise to enhance energy security, create jobs, and stimulate economic growth in South Africa.
If successful, this initiative could position South Africa as a leader in the global green hydrogen market, benefitting both its economy and the environment.
