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UK company’s R106bn hydrogen project leads the JET in Nelson Mandela Bay

Home Infrastructure Energy – Power Generation UK company’s R106bn hydrogen project leads the JET in Nelson Mandela Bay

HIVE Hydrogen, part of the Hive Energy (United Kingdom) Group, announced the alignment of its £5 billion (R106 billion) Coega Green Ammonia Project with the Just Energy Transition (JET) at the Eastern Cape Investment Conference in Buffalo City in November, the company shared on its social media.

This is the first of this kind of project in Africa that meets the critical criteria needed for this transition to take place, according to the company.

The 900 000 ton per year clean green ammonia project with over 3 000 MW of renewable energy being developed is said to be “widely hailed as the initiative that the region suffering from over 50% unemployment and the lowest GDP per capita in the country desperately needs”.

Executive chairman of Hive Hydrogen, Thulani Gcabashe, said, “This bright beam of hope that our project brings is fast becoming a reality with large industry players and funds from across the globe wanting to invest in a better future for all.”

The company says the project will create over 20 000 jobs ranging from large teams of construction workers through to specialist engineers and indirect employment, the impact on the livelihood of the poverty-stricken communities will be transformative also empowering and equipping them for new opportunities of the future including reducing the dramatic effects that climate change has bought into their lives.

The green ammonia plant itself will have zero carbon emissions and contribute significantly in the race to net-zero greenhouse gas emissions. The renewable energy component will also add solar and wind power to the grid which will further help reduce the country’s reliance on coal and fossil fuels, enabling industries in the bay to use green energy for manufacturing, packaging, and processing.

The Hive Green Ammonia Project will also help alleviate hardship from the water shortages through the green energy powered desalination plant which will be able to provide the city with as much as 50% of its baseload water requirements, the company says.

Gcabashe commented further: “Stakeholders in this pioneering project will include women, mineworkers, marginalised and vulnerable people and communities too. This black economic empowerment initiative has very strong support from within in the country as it is supported by organisations with an excellent track record.”

With three further phases possible, totalling a further £15 billion (R317 billion), the Hive Hydrogen Projects will add even more jobs and positive development, including much-needed new transmission lines that will open industrial sectors massively with over 10 000 MW planned to connect to the country’s power backbone. According to the company, this is already attracting new manufacturing industries to the industrial development zone (IDZ) and surrounding areas including electric vehicle manufacturers, renewable energy equipment manufacturers and products for the green hydrogen economy.

The project is one of nine green hydrogen projects named by Public Works and Infrastructure Minister Patricia de Lille in her speech at South Africa’s inaugural green hydrogen summit. Hosted by Infrastructure South Africa (ISA), in Cape Town from November 28-30, the summit showcased the country’s offering as an early stage, large scale, low cost, world class green hydrogen production hub and total value chain investment destination.

The nine projects were scheduled to be gazetted as Strategic Integrated Projects so that they can be fast-tracked.

The UK has taken a keen interest in South Africa’s developing hydrogen sector and, through the UK Partnering for Accelerated Climate Transitions (UK PACT), already contributed expertise and educational partnerships. There are plans for further support.

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