EU’s R628 million grant propels South Africa towards a greener future in the global hydrogen economy.
(The Post News)- South Africa’s green hydrogen sector is set to receive a substantial financial injection from the European Union.The EU has awarded a grant of approximately R628 million to bolster the country’s green hydrogen agenda.
This move marks a significant step towards sustainable energy and economic growth, aligning with South Africa’s strategic objectives to enhance its local economy and ascend higher in the global value chain.This financial boost was announced during a press briefing attended by Kgosientsho Ramokgopa, Minister of Energy and Electricity, and Parks Tau, Minister of Trade, Industry and Competition, alongside Kadri Simson, the European Union Commissioner for Energy.
The grant is part of the EU’s broader commitment to supporting green initiatives globally and reflects a strategic partnership with South Africa in the transition to cleaner energy sources.The grant funding is divided into two major parts: the first grant, amounting to nearly R100 million, is earmarked for the implementation of Transnet’s strategy.
Transnet, the state-owned entity that controls and manages the railway, harbor, and pipeline infrastructure in South Africa, will play a pivotal role in the deployment of this grant. While the second,approaching half a billion Rand, is set to be invested in the development and construction of infrastructure within the South African green hydrogen value chain.
This infrastructure is expected to lay the groundwork for a robust green hydrogen industry, capable of meeting both domestic energy needs and creating export opportunities.Commissioner Simson highlighted the grants’ alignment with South Africa’s strategic goals, emphasizing their role in adding value locally and fostering a knowledge economy that will catalyze growth across various sectors.
The grants are not merely financial injections but are envisioned as catalysts for broader economic and social benefits, including job creation, technological advancement, and environmental sustainability.
Minister Ramokgopa expressed the nation’s resolve to capitalise on green hydrogen, which he described as one of the new emerging frontiers of the global energy landscape. South Africa’s abundant renewable energy resources, such as solar and wind, position it uniquely to become a leader in the production and supply of green hydrogen.
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