EU Grants R628 Million To Support South Africa’s Green Hydrogen Development

In a joint announcement, the European Union (EU) and South Africa’s Ministry of Electricity and Energy and Department of Trade, Industry, and Competition unveiled two major EU grants totalling R628 million (€32 million) to advance South Africa’s green hydrogen strategy.

European Commissioner for Energy Kadri Simson, South African Minister of Electricity and Energy Kgosientsho Ramokgopa, and Trade, Industry, and Competition Minister Parks Tau revealed the grants, aimed at supporting South Africa’s ambitious plans to develop a green hydrogen economy.

The first grant, amounting to R490 million, is expected to unlock R10 billion in private and public sector investments along the green hydrogen value chain, including production, transportation, storage, and downstream industries. This funding will drive the development of renewable energy infrastructure, creating jobs and promoting local economic growth while reducing carbon emissions.

A second grant of R138 million will assist South Africa’s state-owned enterprise, Transnet, in its green transformation efforts, focusing on ports, rail, pipelines, and engineering facilities. The funds will help Transnet achieve its goal of net-zero emissions by 2040 and support the company’s role in developing a green hydrogen ecosystem.

Commissioner Simson commented, “This partnership with South Africa showcases the EU’s Global Gateway strategy in action, enhancing clean and secure connections in energy and transport. By supporting South Africa’s green hydrogen agenda, we aim to accelerate sustainable development and create new economic opportunities.”

The grants are a key part of the EU’s efforts to promote green energy in South Africa, aligning with the country’s Hydrogen Society Roadmap and broader goals of transitioning to a low-carbon economy. These projects will also help establish a regional green hydrogen hub in Southern Africa.

Transnet’s role in the hydrogen value chain, combined with the new funding, positions South Africa as a significant player in the global green hydrogen market, contributing to sustainable economic growth and environmental stewardship.