Hive Hydrogen Initiates $5.8 Billion Green Hydrogen Project in South Africa
Key Ideas
- Hive Hydrogen South Africa is seeking proposals for a $5.8 billion green hydrogen project in the Eastern Cape province.
- The project aims to start production of over 1 million tons of green ammonia annually near the city of Gqeberha by 2029.
- South Africa is leveraging its solar and wind power potential to become a major green hydrogen producer for export markets like Japan and South Korea.
- Despite skepticism about production costs, the project is a significant step towards decarbonizing heavy industry and shipping.
Hive Hydrogen South Africa is inviting engineering companies to participate in the development of a $5.8 billion green hydrogen project in South Africa's Eastern Cape province. The project, led by the UK's Hive Energy Ltd. and South Africa's BuiltAfrica Group, aims to produce over 1 million tons of green ammonia annually near the city of Gqeberha starting in 2029.
The company has shortlisted 15 companies for the project after receiving interest from 48 firms. The final investment decision is expected in the third quarter of 2026. The green ammonia will be shipped to export markets, including Japan and South Korea. South Africa's abundant solar and wind power resources position it as a key player in the green hydrogen sector, competing with countries like Namibia.
While green hydrogen is seen as a crucial step in decarbonizing heavy industry and shipping, skeptics question its cost competitiveness with traditional fuels like diesel. Despite this, the Hive Hydrogen project is considered a significant advancement in utilizing renewable energy for clean fuel production. The project's scale and ambition make it one of the most advanced green hydrogen initiatives in South Africa, attracting interest from engineering firms across East Asia, Europe, and the UK.
Topics
Power
Investment
Solar Power
Decarbonization
Renewables
Energy Production
Wind Power
Export Markets
Engineering Companies
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