Chemical company Omnia Group and WKN Windcurrent, a subsidiary of German renewables company PNE, have signed a memorandum of understanding (MoU) to access the onsite production of green hydrogen and ammonia in South Africa. The agreement envisages a 1000,000 tons per year green ammonia plant that will be powered by renewable energy from hybrid sources.
PNE’s subsidiary will develop the necessary equipment to combine ammonia manufacturing with power generation from wind and solar energy. The plant will produce competitively priced green ammonia, which would result in avoiding CO2 emissions of 180,000 tons per annum.
The recent collaboration between Omnia Group and PNE would help South Africa reach its decarbonization goals by reducing the country’s reliance on imports and restricted rail logistics. The expansion of the green hydrogen value chain in the country will aid the government’s plan to create a green hydrogen economy.
Markus Lesser, CEO of PNE, said that green hydrogen and its downstream products are key to facilitating the energy transition in South Africa while unlocking sustainable growth opportunities. The recent agreement is an important step in the implementation of PNE’s 2.0 strategy, in which solutions related to Power-to-X play a significant role.
Last month, Omnia has launched a 5 MW solar power plant in Sasolburg industrial city in the Free State province. According to the company, these types of projects would reduce its dependency on the unstable national grid, which is majorly based on coal-fired power.
Seelan Gobalswamy, CEO of Omnia, said the company always aims to be innovative and use green technology. The onsite green ammonia production will significantly reduce the environmental footprint and support the country’s green energy journey.
South Africa is utilizing its copious natural resources to produce renewable energy and reduce carbon emissions. The government has mobilized over $8.5 billion in funding through its ‘Just Energy Transition Program’ alongside Germany and other nations, to speed up the country’s transition to improved renewable energy sources.
