The Coega green ammonia project has taken a major step forward, securing a $20 million investment from the SA-H2 Fund. This is South Africa’s first large-scale green ammonia initiative and represents a critical milestone in the country’s transition to clean energy and green hydrogen leadership.
Located in the Coega Special Economic Zone in Nelson Mandela Bay, the project is being developed by Hive Hydrogen South Africa, a joint venture between Hive Energy (UK) and local partner BuiltAfrica. The facility will use 3.6 GW of renewable energy (2.4 GW wind and 1.2 GW solar) and a 1.2 GW electrolyser to produce up to 1 million tonnes of green ammonia per year, primarily for export to Asia and the EU.
A memorandum of cooperation with Japan’s ITOCHU Corporation is already in place for potential equity investment and future offtake.
The $20M investment from SA-H2 Fund (a partnership between Climate Fund Managers and Invest International) will fund front-end engineering, environmental assessments, permitting, and EPC contractor selection. SA-H2 may also invest up to $200 million during construction.
“Hive’s project combines scale and ambition. It can position South Africa as a green hydrogen exporter,” said Sebastiaan Surie, Head of New Ventures at Climate Fund Managers.
This announcement coincided with South Africa’s Green Hydrogen Summit in Cape Town.
Additional support comes from the Public Investment Corporation (PIC), IDC, and DBSA, which together committed ZAR 656 million ($36.8 million) to the SA-H2 Fund.
Hive Energy also confirmed the development phase is complete for its 1,430 MW solar cluster, supplying nearly 40% of the plant’s power needs. This solar initiative was co-developed with Akuo Energy, Africoast Investments, and Golden Sunshine Trading.
The Coega green ammonia project is expected to reach financial close in 2026 and begin commercial operations by 2029.