South Africa hogs limelight at inaugural regional hydrogen summit

From the newsletter

South Africa took centre stage at the inaugural Africa Green Hydrogen Summit, unveiling a flurry of major announcements. These included $37 million in green hydrogen deals, the launch of the South African Renewable Energy Masterplan (SAREM) and a landmark investment in the country’s first large-scale green ammonia project.

• South Africa stands out in the regional hydrogen economy with a diversified strategy spanning synthetic fuels, industrial green hydrogen and mobility-focused applications like fuel cell transport.

• Its competitive edge lies in abundant renewable resources, including world-leading platinum group metal (PGM) reserves critical for PEM electrolysers and fuel cells, and a well-established industrial base.

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• Held on June 12–13 in Cape Town, the Africa Green Hydrogen Summit brought together members of the Africa Green Hydrogen Alliance—South Africa, Namibia, Kenya, Egypt, Morocco and Mauritania—to advance innovation, investment and regional collaboration in the sector.

• Among the summit’s key outcomes was the announcement of new financing for South Africa’s flagship blended finance vehicle, the SA-H2 Green Hydrogen Fund also known as C13 South Africa. The Development Bank of Southern Africa (DBSA) and the Industrial Development Corporation (IDC) each committed $10 million, with a further $17 million pledged by the Public Investment Corporation (PIC).

• The Hive Hydrogen Green Ammonia Project became the first recipient of SA-H2 funding, following the signing of a development funding agreement at the summit. The project is South Africa’s first large-scale green ammonia facility and is located in the Coega Special Economic Zone in Nelson Mandela Bay, Eastern Cape.

• Set to produce one million tonnes of green ammonia annually, Hive is expected to cut 2.6 million tonnes of CO₂ emissions and create up to 20,000 jobs. Financial close is targeted for the second half of 2026 with commercial operations expected by 2029.

• The funding from Climate Fund Managers (CFM) and Invest International-managed SA-H2 will support front-end engineering, permitting, environmental and social impact assessments and offtake preparations. SA-H2 also retains the right to invest up to $200 million in construction financing.

• “SA-H2’s investment strengthens our ability to deliver this lighthouse project to world-class technical, operational, environmental and social standards while attracting long-term international investors and partners,” said Hive Executive Chairperson Thulani Gcabashe.

• In another key announcement at the two-day summit, South Africa officially launched its Renewable Energy Masterplan, a policy blueprint to accelerate renewable energy deployment, boost local manufacturing, promote industrial localisation and support a just energy transition.

• Speaking at the summit, President Cyril Ramaphosa reaffirmed the country's long-term commitment to developing a globally competitive green hydrogen economy. He highlighted that over $80 million has already been invested through the Hydrogen South Africa (HySA) programme, supporting innovation, research and early-stage project development.

• That commitment aligned with the findings of the African Green Hydrogen Report 2025, launched at the summit, which names South Africa as one of the continent’s most advanced hydrogen markets. The country is one of only two African countries (alongside Namibia) to have launched a dedicated blended finance vehicle.

• The SA-H2 Fund aims to mobilise up to $1 billion in public and private capital to de-risk and scale green hydrogen projects. The report also notes that South Africa is home to one of only three operational green hydrogen projects on the continent already producing hydrogen for domestic use.

• South Africa is also one of five African countries targeting over 20 million tonnes of green hydrogen exports annually by 2050 while simultaneously building local demand in sectors like steel, mining, transport and heavy industry. This dual approach ensures hydrogen supports both economic growth and decarbonisation domestically while establishing global trade potential.

• Importantly, the report highlights that South Africa’s institutional and policy readiness sets it apart. With a Hydrogen Society Roadmap, a Green Hydrogen Commercialisation Strategy and structured financial mechanisms like the SA-H2 Fund, the country presents a coherent national approach that moves beyond vision to execution.

Our take

• South Africa’s momentum is a wake-up call to African peers: with the right policy mix and investment tools, the continent can drive its own hydrogen-led industrial transformation.

• The SA-H2 Fund shows how blended finance can unlock complex green infrastructure in Africa, an approach other nations could replicate to attract long-term capital.

• By balancing domestic demand with export readiness, South Africa is building a resilient hydrogen ecosystem that appeals to long-term investors and global markets.