South African-based Hive Hydrogen has officially launched plans for a $5.8 billion South Africa’s .green hydrogen project in Coega. The scope of implementation entails a green hydrogen and ammonia project in the Eastern Cape. This marks a major step forward in the country’s renewable energy ambitions. The company is a joint venture between UK-based Hive Energy Ltd. And South Africa’s BuiltAfrica Group. It noted that it has shortlisted 15 engineering firms to submit proposals for the project. This comes after receiving expressions of interest from 48 companies earlier this year. The planned facility will be based in the Coega Special Economic Zone near Gqeberha. It is expected to produce over 1 million tonnes of green ammonia annually. Nonetheless, commercial operations are targeted for 2029. A final investment decision (FID) is anticipated in the third quarter of 2026.
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The Scope of Implementation on South Africa’s Green Hydrogen Project
The implementation of South Africa’s green hydrogen project aims to facilitate its vast wind and solar resources. Green ammonia is gaining interest across the African continent as a cleaner fuel alternative for heavy industry and shipping. Based on the nation’s wind and solar resources, South Africa has a strategic edge in the global race to lead green hydrogen production. The project is also part of the country’s broader push to diversify its energy exports and reduce reliance on carbon-intensive fuels. Although the project has been embraced as promising, challenges still remain.
Firstly, critics question whether production costs can be lowered enough to compete with conventional fuels. Despite this, Hive Hydrogen remains confident that global demand, particularly from Japan and South Korea. They expect that this will support long-term viability. The Coega project is poised to be a cornerstone of South Africa’s clean energy transition. Moreover, it will potentially unlock thousands of jobs, new trade routes, and major foreign investment.
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