South Africa Secures R628 Million in EU Grants to Drive Green Hydrogen Development

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Electricity Minister Kgosientsho Ramokgopa leads a High Level Panel discussion during the Green Hydrogen Summit.

Green Hydrogen


South Africa is set to receive a significant financial boost in its green hydrogen journey, with R628 million in grant funding from the European Union (EU). The announcement was made during a joint media briefing involving South Africa’s Energy and Electricity Minister Kgosientsho Ramokgopa, Trade, Industry and Competition Minister Parks Tau, and EU Commissioner for Energy, Kadri Simson. The funding is aimed at accelerating the development of South Africa’s green hydrogen ecosystem and advancing the country’s energy transition agenda.

The grants will be split into two major allocations. The first grant, amounting to approximately R490 million, will support the development of South Africa’s green hydrogen value chain. This is expected to attract up to R10 billion in public and private sector investment, covering essential areas such as hydrogen production, transportation, storage, and downstream industries. The second grant of R138 million is directed towards Transnet, the state-owned logistics company, to help it advance its green transformation. This includes feasibility studies and pilot projects focused on low-carbon hydrogen production and storage within Transnet’s key operational areas, such as rail, ports, and pipelines.

Minister Ramokgopa highlighted the importance of this funding, stating that green hydrogen offers one of the best opportunities for South Africa to “reindustrialise” and leverage its significant mineral wealth. The EU’s growing demand for green hydrogen, driven by its own decarbonisation targets, presents a lucrative market for South African producers. Parks Tau further emphasised that these grants would help the country achieve its net-zero goals, while also promoting green industrialisation, including the local manufacturing of renewable energy and electrolyser components.

The EU’s commitment to South Africa’s green hydrogen sector aligns with the broader global push for cleaner energy solutions, especially in hard-to-abate sectors such as transportation and heavy industry. Additionally, the funding is part of the EU’s Just Energy Transition Partnership, which aims to support sustainable development and economic growth in South Africa through clean energy projects.

The announcement comes as the EU prepares to launch a matchmaking platform in 2025 to connect European green hydrogen buyers with non-European producers, including South Africa. This platform is expected to further facilitate the global energy transition by promoting partnerships between hydrogen producers and consumers across regions.

South Africa’s green hydrogen strategy, supported by the Industrial Development Corporation (IDC) and other local stakeholders, is poised to position the country as a global leader in sustainable hydrogen production, creating jobs, driving economic growth, and contributing to the global effort to reduce carbon emissions.

Germany, South Africa collaborate on green hydrogen
Germany, South Africa collaborate on green hydrogen

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