South Africa to launch $1bn green hydrogen fund backed by Netherlands
Dutch will offer financial support for Pretoria's efforts to phase out coal and diversify its economy
The Netherlands will form a $1bn green hydrogen fund with South Africa to invest in the country’s projects.
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The cash was promised during a recent state visit to South Africa by Dutch prime minister Mark Rutte and Danish leader Mette Frederiksen.
“From the Netherlands, we welcome the commitment of $1bn for the establishment of SA-H2 Fund to mobilise green hydrogen investments,” said South African president Cyril Ramaphosa today (Tuesday), adding that he is “encouraged by the enthusiasm and interest shown by the Netherlands and Denmark to work with South Africa in developing a green hydrogen economy”.
South Africa’s government is exploring green hydrogen as a potential new area for investment while it shifts its economy away from its current dependence on coal, with a target of 10GW electrolyser capacity by 2030.
The Netherlands and Denmark are also reportedly due to join the Just Energy Transition Partnership set up in 2021 by the US, UK, France, Germany, and the EU, which commits an initial $8.5bn toward South Africa’s coal phaseout.
Yesterday, the Danish and Dutch prime ministers Mette Frederiksen and Mark Rutte jointly visited South African’s neighbour Namibia, which Rutte described on Twitter as an effort to “step up our cooperation on green hydrogen”, although no new binding agreements were signed.
Last month, Namibia signed an agreement with independent producer Hyphen Hydrogen Energy to develop a $10bn, 3GW green hydrogen and ammonia complex in the country.