SA Secures R628M in EU Grants to Boost Green Hydrogen Development

Commissioner Simson highlighted that these grants will not only support the local economy but also contribute to knowledge-driven growth in other sectors.

South Africa is set to receive approximately R628 million in grant funding from the European Union (EU) to support its green hydrogen initiatives. This announcement came during a media briefing with Minister of Energy and Electricity Kgosientsho Ramokgopa, Trade, Industry and Competition Minister Parks Tau, and EU Commissioner for Energy, Kadri Simson.

The funding will be distributed in two phases: the first grant, amounting to R100 million, will assist in implementing Transnet’s green hydrogen strategy, while the second, nearly half a billion Rand, will focus on infrastructure development in South Africa's green hydrogen value chain. Commissioner Simson highlighted that these grants will not only support the local economy but also contribute to knowledge-driven growth in other sectors.

Minister Ramokgopa emphasized South Africa's strategic focus on green hydrogen, recognizing its potential to reindustrialize the country by leveraging its rich mineral resources and access to European markets. He underscored the importance of green hydrogen in advancing both the South African economy and global efforts to reduce carbon emissions.

Minister Tau further noted that the grants will help South Africa meet its net zero targets by decarbonizing certain industries and greening parts of the value chain. He also mentioned the collaboration with the Industrial Development Corporation (IDC) on a green hydrogen commercialization strategy, with the Ministry of Energy and Electricity leading the implementation efforts.