South Africa’s green hydrogen value chain has received an EUR57.8 million boost in grant funding.
The grants fall under the European Union’s Global Gateway initiative to mobilise funding for high-quality, sustainable projects and make up a small portion of the wider EUR12 billion investment package for South Africa announced in October 2025.
Read more: South Africa receives R628m grant from EU to boost Green Hydrogen agenda
The new financing – from the EU, Germany, Denmark and the Netherlands – was announced at the African Green Hydrogen Summit in Cape Town and includes an EUR37.3 million programme to develop green hydrogen and critical minerals value chains and a EUR20.5 million financing facility to drive investment in green hydrogen and Power-to-X (PtX) projects.
PtX projects convert surplus renewable power from solar panels, wind turbines into a variety of green fuels or chemicals, such as green ammonia and e-fuels.
The EUR37.3 million investment – led by the German Corporation for International Cooperation, more commonly known as Giz, and South Africa’s Department of Electricity and Energy – aims to develop critical minerals, metals and green hydrogen value chains focusing in particular on the Northern Cape, Limpopo and Mpumalanga provinces, reports Fuel Cells Works.
The grant will go towards improving strategy, policy and regulatory frameworks; private-sector cooperation and finance; research and development;and institutional and technical capacity-building.
The PtX financing facility involves the EU, Germany’s KfW Development Bank and the Development Bank of Southern Africa. The project will have a nationwide geographical scope.
