The Industrial Development Corporation (IDC) and Germany’s KfW Development Bank have partnered to support the development of a green hydrogen project in SA, with the Prieska Power Reserve project being the first to benefit from the partnership.
The funding agreement was officially signed on Thursday at the Africa Green Hydrogen Summit in Cape Town. The IDC will manage grant funding from the German government to support the project.
The Prieska Power Reserve is a green hydrogen and ammonia production facility located in the Northern Cape. It is co-owned by Mahlako — a women-owned infrastructure investment firm, and Central Energy Corporation, an energy solutions company.
The project is situated in the Pixley Ka Seme district municipality, covering an area of more than 1,900ha. It will use a combination of solar and wind power to generate electricity, which will then be used for green hydrogen and ammonia production through electrolysis and ammonia synthesis.
According to the statement, the project’s first phase aims to produce more than 80,000 tonnes of green ammonia annually by 2027, using about 14,000 tonnes of green hydrogen. Production is planned to increase to more than 500,000 tonnes a year by 2030. The project is expected to create about 400 direct jobs and support more than 300 small businesses.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.