A $1 billion hydrogen fund has been launched between the governments of the Netherlands and Denmark and South Africa to assist the latter country’s decarbonisation efforts.
With plans to export green hydrogen to the European Union, South Africa intends to produce the fuel for use in aviation, green steel, transport and more.
To do so would cost 319 billion rand, or $17.57 billion, according to President Cyril Ramaphosa.
To support the nation’s green hydrogen sector, a joint venture between the Dutch development bank, FMO, and South African insurer Sanlam has dubbed the new fund SA-H2.
Climate Fund Managers, who will run the fund, said: “The SA-H2 Fund initiative will aim to secure US$1 billion in funding, to be raised directly in South Africa or indirectly via other channels.”
Currently, South Africa is the 14th biggest emitter of carbon dioxide globally, due in part to their reliance on a fleet of 15 ageing coal-fired power plants for electricity.
As such, European nations are stepping in to aid the country’s transition towards a greener economy to help mitigate climate change.
In 2021, France, Germany, Britain, the United States and the European Union pledged $8.5 billion to South Africa for its green transition, including a green hydrogen industry.