South African Government Grants SIP Status To Phelan Green Energy’s Hydrogen Project

Representational image. Credit: Canva

The South African Government has granted Strategic Integrated Project (SIP) status to Phelan Green Energy’s hydrogen project, a significant recognition aimed at accelerating the development of crucial infrastructure to advance South Africa’s green hydrogen goals.


Phelan Green Hydrogen plans to invest R47 billion ($2.5 billion) to establish the largest green hydrogen project in Saldanha, Western Cape, capable of producing 85,000 metric tonnes of green hydrogen and its derivatives annually.


The company anticipates its first exports of green hydrogen derivatives in 2026, with a projected annual revenue of R6 billion ($320 million).


Paschal Phelan, Chairman of Phelan Green Hydrogen, emphasized the transformative nature of this project, which has involved extensive work over three years to optimize production efficiency, secure suitable land spanning 6,000 hectares, obtain planning approvals, and develop innovative engineering and financial plans.

Phelan Green Hydrogen envisions itself as a global leader in green energy export, extending beyond green hydrogen production, with operations in Egypt, Peru, Chile, and Spain.

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In July 2023, the South African Transnet National Port Authority (TNPA) shortlisted three proposals for the construction of a port and rail infrastructure to facilitate the export of hydrogen and ammonia. This infrastructure, situated in the Boegoebaai area of the Northern Cape Province, will support the export of green ammonia, manganese, and other commodities, aligning with the region’s mining aspirations.

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