The European Union has pledged to give South Africa two grants worth $35 million to accelerate its green hydrogen plans. The first EU grant, worth R140 million (US$7.8 million), aims to help South Africa’s state-owned company Transnet cover infrastructure costs to support railways, ports, pipelines and greater transport.
Another 25 million euros ($27.6 million) grant will help Africa’s largest economy develop its hydrogen cash flow. South Africa’s green hydrogen project is designed to use renewable energy to split water into hydrogen and oxygen to produce fuel for industries such as transportation, petrochemicals, and metals.
Green hydrogen is considered essential for decarbonisation efforts in South Africa and Europe. It is also seen as a big step in line with the goals of reducing carbon emission.
European countries invest in green hydrogen projects across Africa to secure future fuel supplies and ensure cleaner energy.
EU Energy Commissioner Kadri Simson told reporters in South Africa’s investment capital Pretoria that two EU grants would be used to help South Africa’s bid.
South Africa’s minister of energy and electricity added that green hydrogen provides some of the best opportunities for the country to industrialize.
