EU grants EUR 32m to support green hydrogen development in S Africa

The EU has decided to allocate ZAR 628 million (USD 35.0m/EUR 31.7m) in the form of two grants to South Africa to advance green hydrogen development as part of the country’s green transition.

The first grant of ZAR 490 million is aimed at encouraging infrastructure investments along the green hydrogen value chain from the point of production to transportation and storage, and downstream industries. It is expected to fuel ZAR 10 billion in private and public sector finance.

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The second grant of ZAR 138 million will be directed to state-run rail, port and pipeline company Transnet to support its turn-around strategy and attract additional funding for the green transformation of its core operations.

The grant will allow Transnet to execute studies and pilot projects focused on the production and storage of low-carbon hydrogen. It will also help it get technical assistance to structure its green hydrogen strategy and allow for the scaling up of green hydrogen projects in South Africa.

The grant announcement was made as part of a meeting between European Commissioner for Energy Kadri Simson and South Africa’s minister for electricity and energy Kgosientsho Ramokgopa and minister of department of trade, industry and competition Parks Tau.

(ZAR 10 = USD 0.559/EUR 0.506)