South Africa’s first large-scale green ammonia project, the Hive Hydrogen Coega initiative, has secured an initial investment of up to USD 20 million (EUR 17.3 million) from SA-H2 Fund, marking a significant milestone in the country’s efforts to accelerate its energy transition and green hydrogen economy.
The project is being developed in the Coega Special Economic Zone, located in Nelson Mandela Bay, Eastern Cape Province, by Hive Hydrogen South Africa — a joint venture between UK-based Hive Energy and South African renewable energy and investment firm BuiltAfrica.
The integrated green ammonia facility will leverage 3.6 GW of renewable energy capacity, comprising 2.4 GW of wind and 1.2 GW of solar, alongside a 1.2-GW electrolyser, desalination facilities, air separation units, bulk ammonia storage, and dedicated export infrastructure. Once operational, the plant is expected to produce 1 million tonnes of green ammonia annually, targeting key export markets in Asia and the European Union. Hive Hydrogen has already signed a memorandum of cooperation with Japan’s ITOCHU Corporation, outlining potential strategic equity investment and offtake agreements.
SA-H2 Fund — a blended finance platform managed through a partnership between Climate Fund Managers (CFM) and Dutch development finance institution Invest International — made its inaugural investment with this funding commitment. The financing package will cover critical early-stage development activities, including engineering, procurement and construction (EPC) selection, front-end engineering and design (FEED), permitting, and environmental and social impact assessments. SA-H2 also holds an option to invest up to USD 200 million in construction-stage financing.
“This is a landmark first investment for SA-H2 and a defining project for the country’s green hydrogen economy. Hive’s project brings together scale, technical ambition, and global relevance — and has the potential to position South Africa as a competitive exporter of low-carbon energy,” commented Sebastiaan Surie, Head of New Ventures at Climate Fund Managers.
The financing announcement coincided with South Africa’s Green Hydrogen Summit, held this week in Cape Town.
In parallel, South Africa’s Public Investment Corporation (PIC), the Industrial Development Corporation of South Africa (IDC), and the Development Bank of Southern Africa (DBSA) have jointly committed ZAR 656 million (USD 36.8 million / EUR 31.8 million) to support the SA-H2 Fund.
The Hive Hydrogen Coega project aims to reach financial close in the second half of 2026, with commercial operations expected to commence by 2029.
Separately, Hive Energy also announced the completion of the development phase for a 1,430-MW solar cluster that will supply approximately 40% of the green ammonia plant’s power requirements. The solar portfolio — known as Crossroads Green Energy — was co-developed in partnership with France-based Akuo Energy, Africoast Investments South Africa, and Golden Sunshine Trading South Africa.
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