South Africa’s drive to position itself as a green hydrogen export hub took a significant step forward with the announcement of a USD 20 million early-stage investment into the Hive Hydrogen Coega project.
The funding, provided by the SA-H2 Fund—a blended finance vehicle backed by Climate Fund Managers and Invest International—marks the first deployment of capital from the fund and sets the stage for what may become one of the continent’s most advanced green ammonia export facilities.
Located in the Coega Special Economic Zone in Nelson Mandela Bay, Eastern Cape, the Hive Hydrogen Coega initiative represents a collaboration between UK-based Hive Energy and South African investment firm BuiltAfrica. The planned facility integrates 3.6 GW of renewable energy (2.4 GW wind and 1.2 GW solar) with a 1.2 GW electrolyser, desalination systems, air separation units, and extensive ammonia handling and export infrastructure. Once operational, the plant is expected to produce up to 1 million tonnes of green ammonia annually—destined for markets in Asia and the European Union.
The project’s export orientation has already attracted attention from major international players. Hive Hydrogen signed a memorandum of cooperation with Japan’s ITOCHU Corporation, which includes discussions around strategic equity participation and ammonia offtake. This aligns with broader trends in East Asia and the EU, where demand for low-carbon fuels is forecast to rise sharply as regulatory pressure mounts and supply chain emissions targets become more stringent.
The SA-H2 Fund’s investment will support front-end engineering and design (FEED), environmental and social impact assessments (ESIA), permitting processes, and the selection of engineering, procurement, and construction (EPC) contractors. An option to scale up the investment to USD 200 million at construction stage signals confidence in the project’s viability and potential export competitiveness. According to Sebastiaan Surie, Head of New Ventures at Climate Fund Managers, the project’s scale and technical ambition make it a “defining initiative” for South Africa’s hydrogen economy.
Hive’s timing coincides with rising geopolitical interest in diversifying hydrogen supply chains and decarbonizing hard-to-electrify sectors. South Africa, as a member of the Africa Green Hydrogen Alliance and with strong solar and wind resources, is increasingly viewed as a viable player in the global green ammonia market—particularly given proximity to key shipping routes and growing policy support at the national level.
The announcement was made during the Green Hydrogen Summit in Cape Town, where the South African government reaffirmed its commitment to leveraging hydrogen as a cornerstone of its energy transition strategy. In parallel, three major public financial institutions—the Public Investment Corporation (PIC), Industrial Development Corporation (IDC), and the Development Bank of Southern Africa (DBSA)—confirmed a combined ZAR 656 million (USD 36.8 million) commitment to the SA-H2 Fund, reinforcing the state’s alignment with market-led decarbonization initiatives.
In a related development, Hive Energy also disclosed the completion of the development phase for a 1,430-MW solar PV cluster under the Crossroads Green Energy banner. This cluster, set to deliver approximately 40% of the Coega plant’s power needs, was co-developed with France’s Akuo Energy and local partners Africoast Investments and Golden Sunshine Trading. The integration of dedicated renewable power with the green ammonia facility is critical to ensuring compliance with international certification frameworks such as the EU’s Renewable Energy Directive (RED II), which ties hydrogen’s “green” classification to its upstream power sources.
The Hive Hydrogen Coega project is targeting financial close in the second half of 2026 and commercial operations by 2029.
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