Germany has pledged EUR 23.1 million (USD 24.65 million) to South Africa. The financing, orchestrated by development bank KfW on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ), is designated to advance the development of a robust green hydrogen economy in South Africa.
The primary goal of this substantial funding is to support various projects integral to the growth and utilization of green hydrogen. Key beneficiaries include initiatives focusing on hydrogen-powered long-haul transport, sustainable aviation fuel production, and the manufacturing of green ammonia for international export. This strategic investment aligns with the Just Energy Transition Partnership (JET-P), an agreement formed during the COP 26 Summit in Glasgow.
The financial support will catalyze the development and deployment of cutting-edge technologies, such as hydrogen-powered lorries and buses. These advancements are poised to revolutionize the transportation sector, providing eco-friendly alternatives for long-haul journeys. Additionally, the funding will drive innovation in the production of sustainable aviation fuel, contributing to the aviation industry’s transition to greener practices.
South Africa, with its abundant renewable energy potential, stands to gain significantly from this collaborative effort. The funds will not only propel the country’s green hydrogen capabilities but also stimulate economic growth by fostering the production and export of green ammonia. The partnership between Germany and South Africa, particularly in the realm of green hydrogen, is a testament to the shared commitment towards a sustainable and environmentally conscious future.