The South African SA-H2 fund dedicated to green hydrogen received support of around $37 million from the Public Investment Corporation (PIC), the Industrial Development Corporation (PIC), the Industrial Development Corporation (IDC) and the Development Bank of Southern Africa (DBSA). This contribution marks a key step in accelerating the country's energy transition and supporting this sector in particular.

The Southern African Development Bank and Industrial Development Corp. will contribute to the financing of the SA-H2 fund, which combines public and private capital. It is managed by a partnership between Climate Fund Managers, based in The Hague, and Invest International, a Dutch development finance institution.

The public companies IDC and DBSA will each invest 10 million dollars in installments, with the PIC contributing 17 million dollars.

“As a long-term investor, the PIC is committed to supporting infrastructures that generate attractive commercial returns while providing an inclusive and large-scale economic impact,” said Kabelo Rikhotso, PIC's chief investment officer, in the statement.

Several regional green hydrogen projects — a clean fuel considered to be a possible alternative to natural gas in the future — are looking to expand, with many of them initially intended for export. The European Union announced grants last year to stimulate the sector.

Sasol Ltd. has a project in the port of Boegoebaai, on the northwest coast of South Africa, that would ship fuel and provide a domestic supply for its own operations, although the fuel and chemical manufacturer has made some changes in strategy.

Climate Fund Managers has also committed up to $20 million via the SA-H2 fund to complete the development of a Hive Hydrogen project. The company is planning the first large-scale green ammonia production facility in the Eastern Cape Province

The financial close of the $5.9 billion factory is expected by the end of 2026, and commercial operations are expected to begin in 2029.