The European Union’s commissioner for energy, Kardi Simson, has announced financial support of R628 million for South Africa to develop the green hydrogen value chain in line with the country's priorities of adding value to the domestic economy and ramping up its green industrialisation.
The announcement came during meetings Simson was having with local ministers to discuss the ongoing collaboration between the EU and South Africa regarding the just energy transition and the sustainable development of strategic value chains, including green hydrogen.
The EU grants will support the development of South Africa's nascent green hydrogen ecosystem.
More importantly for the country’s logistics sector, R140 million of the decarbonisation loan will go towards supporting Transnet’s turnaround process.
This morning it is reported that the grant will assist the logistics parastatal in securing further funding for the "sustainable transformation of its key operational sectors, such as ports, railways, pipelines, engineering, and related facilities".
Simson also met with a number of additional key stakeholders, including business associations that advise the National Energy Crisis Committee, the Presidential Climate Commission, and representatives of civil society, labour, business and government.
The announcement of the €32 million in grants marked a milestone in SA-EU relations, with the two parties united in their ambition for a just energy transition, an EU statement said.
It emphasised that the grant emanated from discussions that Simson had had with Minister for Energy, Kgosientsho Ramokgopa, and Minister for Trade, Industry and Competition, Parks Tau, which is “part of a full programme in South Africa”.
“Discussions focused on the on-going collaboration between the European Union and South Africa regarding the just energy transition and the sustainable development of strategic value chains, including on green hydrogen.
“Commissioner Simson announced financial support worth R628 million (€32 million) to South Africa to develop the green hydrogen value chain in line with the country’s priorities of adding value to the domestic economy and ramping up its green industrialisation.”
The funding is expected to create new economic opportunities and boost domestic growth in South Africa.
