Cape town: President Cyril Ramaphosa has announced the first wave of six priority green hydrogen projects under South Africa's national green hydrogen programme, signalling a shift from project planning to implementation and investment. Addressing the African Green Hydrogen Summit in Cape Town, President Ramaphosa said the six projects emerged from a rigorous assessment process aimed at standardising project bankability and strengthening investor confidence. The President's address was delivered on his behalf by Electricity and Energy Minister, Dr Kgosientsho Ramokgopa.
According to South African Government News Agency, leading the first wave was the Phelan Green Group electro-Sustainable Aviation Fuel project in Saldanha Bay, which has reached final investment decision after securing an off-take agreement and a $100 million equity commitment. Construction is expected to begin in the first quarter of 2027, with the first exports of electro-Sustainable Aviation Fuel targeted for the first quarter of 2029.
The President highlighted the importance of securing long-term offtake agreements to scale clean hydrogen. He noted that the Phelan Green Group project represents a significant milestone, having committed equity, ordered major equipment, and established a construction pathway. The remaining five projects are part of a managed priority portfolio, focusing on credible projects with defined milestones.
The Coega Green Ammonia Project in the Eastern Cape is undergoing commercial and technical work before reaching final investment. The Saldanha Hydrogen Direct Reduced Iron Project is in pre-feasibility stage, while the Prieska Power Reserve targets the domestic market. The Green e-Fuels Producers Green Methanol Corridor is targeting European demand, and the Green Hydrogen Solutions Project has completed its engineering design.
President Ramaphosa expressed optimism about Africa's potential to become a global hub for green hydrogen, given its renewable resources and mineral reserves. He emphasized the need for Africa to engage across the value chain and contribute to industrialisation through various sectors. The President also highlighted the role of the African Continental Free Trade Area in facilitating this development.
He urged technology partners to invest in manufacturing, training, and research in Africa, calling for practical cooperation on standards and infrastructure. The President emphasized the importance of African development finance institutions in funding project preparation and providing suitable financing instruments.
Finally, President Ramaphosa called for the conversion of non-binding expressions of interest into long-term agreements to support project financing, demonstrating that with partner support and proper planning, projects can transition from concept to development.