South Africa’s Public Investment Corporation (PIC) has teamed up with two development finance institutions to commit $37 million (about R655.6 million) toward green hydrogen financing.
The Development Bank of Southern Africa (DBSA) and the Industrial Development Corporation (IDC) have joined efforts to support the SA-H2 fund, which leverages both public and private investments. This fund is jointly managed by Climate Fund Managers, based in The Hague, and Invest International, a Dutch development finance institution.
Across multiple funding rounds, the IDC and DBSA will each contribute $10 million, while the PIC will provide $17 million.
PIC’s Chief Investment Officer Kabelo Rikhotso emphasized the corporation’s dedication to backing infrastructure that combines strong returns with broad-based economic benefits.
The European Union had previously introduced grants to help catalyze the green hydrogen sector in the country.
Sasol is working on a major green hydrogen initiative at the Boegoebaai port in South Africa’s northwest, aiming to serve both export markets and internal operations. The company has since adjusted parts of its strategy.
In addition, Climate Fund Managers will allocate up to $20 million through the SA-H2 fund to finalize the development phase of Hive Hydrogen’s flagship project, a planned large-scale green ammonia facility in the Coega Special Economic Zone in the Eastern Cape.
The developers aim to reach financial closure by the end of 2026 and expect commercial production to begin by 2029.
source:www.moneyweb.co.za
