South Africa, along with the governments of the Netherlands and Denmark, has announced the launch of a $1 billion fund dedicated to green hydrogen.
This fund is considered crucial for South Africa’s decarbonization efforts as it aims to establish an ecosystem and export hub for green hydrogen, a fuel produced using renewable energy and with minimal greenhouse gas emissions.
President Cyril Ramaphosa has estimated that achieving this goal would require an investment of 319 billion rand ($17.57 billion). The newly established fund, called SA-H2 and operated by Climate Fund Managers, will provide support to South Africa’s green hydrogen sector.
The initiative aims to secure $1 billion in funding either directly in South Africa or through other channels. Several European nations, including France, Germany, Britain, the United States, and the European Union, have already pledged $8.5 billion to support South Africa’s green transition, including the development of a green hydrogen industry.
However, the slow roll-out of renewable energy in South Africa remains a challenge for the establishment of a thriving green hydrogen industry.