Hive Hydrogen South Africa Plans $5.8 Billion Green Hydrogen Project in Eastern Cape
Key Ideas
- Hive Hydrogen South Africa is looking to develop a $5.8 billion green hydrogen project in South Africa's Eastern Cape province.
- The project aims to produce over 1 million tons of green ammonia annually, with production expected to begin in three years near the city of Gqeberha.
- South Africa, with abundant solar and wind power potential, is positioning itself to become a key player in green hydrogen production for decarbonizing heavy industry and shipping.
- Despite critics' doubts on cost competitiveness with traditional fuels, the project has attracted interest from engineering companies globally and is targeting export markets in East Asia.
Hive Hydrogen South Africa, a collaboration between the UK's Hive Energy Ltd. and South Africa's BuiltAfrica Group, is in the process of soliciting proposals from engineering firms to advance its $5.8 billion green hydrogen initiative in South Africa's Eastern Cape province. The company has selected 15 firms from the initial 48 that showed interest to participate in the project. A final investment decision is anticipated by the third quarter of 2026, with production slated to commence three years later in Coega, near Gqeberha. The facility plans to manufacture more than 1 million tons of green ammonia annually, offering a convenient way to transport hydrogen. South Africa, with its substantial renewable energy potential, is competing with countries like Namibia to emerge as a prominent green hydrogen producer. By utilizing renewable energy to extract hydrogen from water molecules, the project aligns with the goal of promoting clean energy sources for various industries. While there are concerns regarding cost competitiveness against conventional fuels, Hive Hydrogen is focused on catering to export markets like Japan and South Korea. The project has garnered interest from engineering companies across East Asia, Europe, and the UK, signaling its global appeal and potential impact on the green energy landscape.