Significant moment as Hive Hydrogen South Africa and Itochu Corporation of Japan joins forces, signing a memorandum of cooperation to advance the hydrogen industry and drive sustainable energy innovation.
As an effort to mark a significant step towards advancing the hydrogen industry in South Africa and creating a sustainable energy future, recently the Hive Hydrogen South Africa and Itochu Corporation of Japan signed a memorandum of cooperation at the Nelson Mandela Bay Stadium in Gqeberha for the $5.8 million hydrogen, says Dr. Ayanda Vilakazi, Coega’s Head of Marketing, Brand and Communications.
The purpose of the memorandum of co-operation is to identify the key areas for collaboration, including but not limited to project financing, off-take for green ammonia, focusing on strategic, structured, and cost-effective approaches for both entities to achieve their green hydrogen and ammonia business objectives.
The partnership between Itochu and Hive signifies a joint commitment to driving innovation and progress in sustainable energy. Through this collaboration, the entities aim to harness the potential of hydrogen as a clean and renewable energy source, contrib uting significantly to the reduction of greenhouse gas emissions and addressing climate change effects.
“Coega Hive Hydrogen green ammonia project aims to contribute substantively to energy decarbonisation. The signing of the memorandum of cooperation marks a pivotal step, with subsequent phases focusing on infrastructure enhancement, obtaining environmental authorization, and garnering commitments from the Eastern Cape government to facilitate the project’s success. We believe that our joint efforts will not only advance the project for implementation, but also positively impact the socio-economic outlook of the EC Province with regards to job creation, skills development, energy security, and local businesses participation, to mention but a few. We are dedicated to exploring and implementing innovative solutions, partnering with the Hive Hydrogen as an investor, to deliver the project as per targeted timeframes, and thus contributing to building a greener, more sustainable future for South Africa and beyond,” says Ms. Asanda Xawuka, Coega’s Executive Manager: Business Development.
The Coega project anticipates an annual production of +/-900 000tons of green ammonia providing clean energy for diverse applications, with green hydrogen and ammonia particularly for decarbonisation of heavy industries and transportation industries.
According to Baphelele Mhlaba, Head of Infrastructure and Investment, Office of the Premier, shared: “The Eastern Cape Province is part of South Africa’s commitment to achieving net-zero carbon emissions by 2050, making this project a flagship initiative for both the province and the nation. We aim to support investors, government entities, and international partners, emphasising inclusivity in development. In the short term, a key focus is on empowering our people with the skills needed for the hydrogen economy, encouraging participation in the project’s value chain. This approach aims to bring change to people’s lives, fostering a development trajectory that includes our local communities. Additionally, we are committed to outlining and promoting opportunities for small to medium enterprises, ensuring that local businesses can participate meaningfully in the project’s development. This project represents a crucial step for South Africa in embracing the green hydrogen as core to a just energy transition and contributing to a sustainable, reduced carbon footprint aligned with global sustainable development goals (SDG),” added Mr. Mhlaba.
John Drinkwater, Managing Director of Cerebos in the Eastern Cape, emphasises the synergy between their expertise in utilising seawater for salt and the project’s use of freshwater aligning seamlessly with the goals of decarbonisation and water conservatio n. Cerebos sees its involvement as contributing to societal well-being of consumers in South Africa by providing green energy, sustainable water, and much need employment in the Eastern Cape.
This project marks a significant achievement as the first large-scale green ammonia production project in the country. Importantly, the project is anticipated to contribute to job creation, with an estimated 20,000 construction jobs and hundreds during operations and it will open doors to the export market, including the export of green ammonia to Japan and European Union (EU). This initiative underscores the commitment to leveraging catalytic projects for the benefit of our nation’s economy and global partnerships.
Coega, as the Hive’s flagship green hydrogen and ammonia project, is poised to play transformative role. Initially, the renewable energy capacity for the development compromises 3.6 GW of solar photovoltaic and onshore wind generation, with additional phases of the project identified targeting more than 12 GW. Once operational in 2028, this project is expected to export green ammonia, green hydrogen, and potentially ammonium nitrate from Coega.
“Coega as a leading SEZ in the African continent, and a beacon of hope in the region of the Eastern Cape, looks forward to the journey ahead and we are confident in the positive outcomes that this collaboration will bring. Together, we are committed to driving change and creating a better, more sustainable world,” concludes Ms. Xawuka.
