Minister of Trade, Parks Tau, third from left, with European Commissioner Kadri Simson, third from right, and minister of Electricity Kgosientsho Ramokgopa, second right, with other officials during the announcement of a R628 million fund to support South Africa’s green hydrogen agenda and Transnet operations. Picture: Facebook / Kgosientsho Ramokgopa
The European Union (EU) has handed out R628 million (€32 million) in grants to South Africa, to support the country’s green hydrogen agenda, and assisting Transnet with its core operational areas, including ports, rail, pipeline, engineering facilities.
The announcement was made by the European Commissioner for Energy Kadri Simson, minister for Electricity and Energy Kgosientsho Ramokgopa and minister of the Department of Trade, Industry and Competition, Parks Tau, on Monday, September 9.
Ramokgopa has said the partnership between the two countries addresses efforts to build more renewable energy infrastructure, improve energy efficiency, and promote sustainable practices.
“By investing in clean energy projects and providing technical expertise, the European Union and its member States support South Africa in making the most of its green potential, promoting sustainable economic development and directly benefiting South Africans.”
Commissioner Simson said the partnership serves as a significant milestone for the European Union and South Africa.
She said the partnership shows the EU’s Global Gateway strategy in action, boosting smart, clean and secure connections in the energy and transport sections.
“Our co-operation in support of South Africa's green hydrogen agenda aims to accelerate the green transition, drive sustainable development, create new economic opportunities, and build a more sustainable future for the region,” Simson said.
It was announced that the funding would be in two phases, with the first phase of R490 million (€25 million) seeking to leverage infrastructure investments along the green hydrogen value chain, covering production, transportation, storage and downstream industries.
The funding will also facilitate and accelerate the efforts of South Africa in the development of a sustainable green hydrogen sector.
The main objective is to increase investments in green hydrogen infrastructure and contribute to reducing global greenhouse emissions, notably in sectors where this is particularly challenging.
It would promote local development and economic growth by creating jobs, providing water treatment, and increasing access to (green) energy.
Commissioner Simson said the European Union's R490 million (€25 million), would be channelled through an EU member State financial institution.
“Through the development of sustainable green hydrogen value chains, the European Union contribution will seek to increase local value addition and, thereby, to support South Africa to move up higher in these value chains. Also, it will support efforts toward the creation of a regional green hydrogen hub in the Southern Africa region.”
The second funding of R138 million (€7 million) will be channelled to the State owned company, Transnet’s Green Hydrogen project to support tasks around its operational areas, including ports, rail and pipeline, engineering and facilities.
The funding would play a pivotal role in helping Transnet to in execute studies (market, legal and feasibility studies as well as impact assessments) and pilot projects focused on the production and storage of low-carbon hydrogen.
“Further, it would mobilise technical assistance to structure Transnet's green hydrogen strategy and allow for the scaling up of green hydrogen projects in South Africa.”
Simson said by the end of this project, Transnet, will receive additional assistance to help it achieve its net zero emissions by its 2040 goal.
“Transnet, as an integrated transportation and logistics company, is expected to play a critical role across the hydrogen value chain for its operations, as well as domestic and export markets.”
Additionally, the funding will help contribute towards ensuring that the State owned company meets its own internal commitments as well as government’s initiatives concerning the Hydrogen Society Roadmap.
IOL