South African Project Worth $2.5bn Granted SIP Status

Phelan Green Energy’s green hydrogen project, which is slated to produce 85,000 metric tonnes per year of green hydrogen and derivatives, has been granted Strategic Integrated Project (SIP) Status.

The project, which is slated to be the country’s largest project in Saldanha, Western Cape, comes at an investment cost of R47bn ($2.5bn).

Now, the project has been granted SIP Status by the South African Government, with the legislation aiming to accelerate the development of vital infrastructure to advance South Africa’s green hydrogen targets.

Phelan Green Energy forecasts its first green hydrogen derivatives’ production and exports to commence in 2026 and have projected a annual revenue of R6bn ($320m).

According to Phelan, planning works are ongoing and are set to be finalised by the third quarter of 2024, after which an investment decision will be taken.

Paschal Phelan, Chairman of Phelan Green Hydrogen, said: “This transformative project, is the culmination of three years intensive work by the Phelan team; to define an optimum standard size installation for lowest cost production, acquire 6,000-hectare acres of suitable land, together with planning approvals, innovative engineering and strategic financial planning.”