The investment agreement also grants SA-H2 the option to participate in the construction phase with up to USD 200 million.
The facility is being developed by Hive Hydrogen South Africa, a joint venture between UK-based Hive Energy and South African renewable energy and investment company BuiltAfrica. Located in the Coega Special Economic Zone in Nelson Mandela Bay, Eastern Cape Province, the project is expected to produce one million tonnes of green ammonia annually for export to global markets. It integrates 3.6 GW of renewable energy generation (2.4 GW wind and 1.2 GW solar PV), a 1.2 GW electrolyser, desalination technology, air separation units, bulk ammonia storage and export infrastructure.
The project is expected to avoid 2.6 million tonnes of CO₂e emissions annually by displacing grey ammonia and will enable up to 20 GW of additional renewable energy to connect to the national grid. It is also expected to create over 20,000 jobs across the Eastern, Western and Northern Cape during construction and operation, while advancing skills development and infrastructure investment in the region.
The development funding from SA-H2 will cover engineering, procurement and construction selection, front-end engineering and design, permitting, environmental and social impact assessments, offtake finalisation and financial close preparation. Financial close is targeted for the second half of 2026, with commercial operations expected to begin in 2029.
The project has been designated South Africa’s Lighthouse Green Hydrogen Project and holds Strategic Integrated Project status granted by the South African Presidency, ensuring streamlined regulatory support.
Sebastiaan Surie, Head of New Ventures at Climate Fund Managers, said: “This is a landmark first investment for SA-H2 and a defining project for the country’s green hydrogen economy. Hive’s project brings together scale, technical ambition and global relevance – and has the potential to position South Africa as a competitive exporter of low-carbon energy. By deploying public capital to absorb early-stage risk, our blended finance model enables private capital to invest in the construction of this pioneering green ammonia plant on terms aligned with their mandates, accelerating the global energy transition.”
Thulani Gcabashe, Executive Chairman of Hive Hydrogen South Africa, said: “South Africa has the infrastructure, resources, engineering and industrial capabilities to become a global leader in green ammonia production. The Hive Coega Green Ammonia Project will not only accelerate the just energy transition but also revitalise the Eastern Cape economy through job creation, infrastructure investment and skills development. SA-H2’s investment strengthens our ability to deliver this Lighthouse project to world-class technical, operational, environmental, and social standards, while attracting long-term international investors and partners.”
