EU Backs Western Cape's Green Hydrogen Vision with Substantial Investment
Key Ideas
  • The EU and its members are supporting South Africa's Green Hydrogen ambitions with a substantial financial boost of €4.7 billion, contributing to the country's ambitious R319 billion Green Hydrogen plan.
  • The investment is expected to add 3.6% to South Africa's GDP by 2050 and create around 370,000 jobs, aligning with the country's Green Hydrogen Commercialisation Strategy.
  • In addition to the EU funding, the SA-H2 Fund, supported by various European entities, aims to raise $1 billion to accelerate the development of South Africa's Green Hydrogen sector and circular economy.
  • The Western Cape is focusing on becoming a Green Hydrogen production hub, aiming to export between 300kt and 420kt of green hydrogen and its derivatives, potentially adding R57 billion to the province's economy and creating over 125,000 jobs by 2030.
The European Union and its members are playing a crucial role in supporting South Africa's Green Hydrogen ambitions by providing significant financial backing. The EU's commitment to contributing €4.7 billion towards South Africa's R319 billion Green Hydrogen plan is part of the Global Gateway Investment Package. This support is seen as a major opportunity by the South African government, with projections indicating a 3.6% increase in GDP by 2050 and the creation of 370,000 jobs. The EU's investment is focused on boosting the Green Hydrogen sector, strengthening connectivity infrastructure, and supporting South Africa's Just Energy Transition initiative. Additionally, the SA-H2 Fund, launched by the Netherlands, Denmark, and South Africa, is aimed at raising $1 billion to facilitate the development of the Green Hydrogen sector in the country. The Western Cape has also outlined its Green Hydrogen Strategy and Roadmap, envisioning the province as a key production hub. With targets to export significant amounts of green hydrogen and its derivative products, the Western Cape aims to boost its economy by billions and create thousands of jobs.
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