The Public Investment Corporation (PIC), SA’s state-owned asset manager, has committed to the SA-H2 fund, a blended finance facility dedicated to accelerating the country’s energy transition and green hydrogen economy.
The PIC, together with the Industrial Development Corporation (IDC) and the Development Bank of Southern Africa (DBSA), has pledged a total of R656m to the fund.
The PIC will contribute R300m as the anchor commercial investor in the equity portion, while the IDC and DBSA will each commit about R178m to the development phase.
The announcement was made at the Africa Green Hydrogen Summit in Cape Town on Thursday.
The fund, managed by Climate Fund Managers and Invest International, aims to mobilise public and private capital to support green hydrogen projects in the country.
The fund’s first investment is a R20m development funding agreement for the Hive Hydrogen Coega Green Ammonia project in the Eastern Cape, which will establish SA’s first large-scale plant of its kind.
The project will produce about 1-million tonnes of green ammonia annually for export, and create more than 20,000 jobs during construction and operations. Financial close is targeted for the second half of 2026, with commercial operations expected by 2029.
“As a long-term investor, the PIC is committed to supporting infrastructure that generates attractive commercial returns while delivering inclusive, broad-based economic impact; in line with our client mandates,” said PIC chief investment officer Kabelo Rikhotso.
“SA-H2 offers a compelling, well-structured opportunity to participate in a high-impact sector that advances job creation, green industrial development, and a just transition. These priorities align with our mandate to advance inclusive, sustainable growth and long-term national resilience.”
Ammonia is a key product made from green hydrogen, serving as both an energy carrier and a globally traded commodity. It can be used directly as a low-carbon fuel in shipping and power generation or as a feedstock in agriculture and industry.
Green hydrogen, which is used to produce green ammonia, is produced by splitting water into its constituent hydrogen and oxygen atoms through electrolysis using renewable electricity.
This method results in hydrogen that is free from carbon emissions, making it a clean and sustainable energy source that only emits water vapour as a by-product.
The importance of green hydrogen lies in its potential to help decarbonise sectors that are difficult to electrify directly, such as heavy industry, shipping and long-term energy storage.
In the production of green hydrogen, platinum group metals (PGMs) such as platinum, ruthenium and iridium serve as catalysts in the electrochemical process of splitting water, facilitating the reaction and increasing its efficiency while reducing the amount of energy required.
At the Africa Green Hydrogen 2025 Summit launch this week, minister of electricity and energy Kgosientsho Ramokgopa pointed to SA’s competitive advantages in this emerging sector, including vast reserves of platinum group metals (PGMs), exceptional solar radiation — particularly in the Northern Cape — and abundant land.
Coupled with a growing pool of highly skilled graduates, “these factors position SA as a key player in the global green hydrogen value chain”, he said.
PGMs are particularly effective due to their high activity, stability and durability, making them essential components in green hydrogen production.
SA, being a major producer of these metals, is well positioned to leverage this advantage in developing green hydrogen.
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.