South Africa, Denmark, and the Netherlands have teamed up to launch SA-H2, a $1 billion fund with a mandate to bolster green hydrogen projects in South Africa. The fund will be backed by numerous financiers, including the Dutch investment entity, Invest International, which contributed $50 million.
The rest of the fund is set to be raised over the next two years, with contribution from various financiers, including the Development Bank of Southern Africa, Industrial Development Corporation, and insurance firm Sanlam, with management set to be handled by the Dutch Climate Fund Managers.
Speaking at the launch of the fund in Pretoria during the state visits of Dutch and Danish prime ministers Mark Rutte and Mette Fredeiksen, South Africa president Cyril Ramaphosa stated that the fund will contribute in tackling the country’s electricity crisis and achieving long-term energy security through renewable energy.
“From solar to biogas, from wind to battery storage, these investments are leading one of the most important growth industries in our country,” he stated.
In terms of the deployment of the fund, the focus will be on early investment opportunities in a technology set to play a transformative role in achieving global emission reduction targets, with a goal to stimulate significant advancements in the green hydrogen sector.
As Eskom’s struggles continue, South Africa seems to be seeking alternative energy sources to support the crumbling national grid. In April, the city of Cape Town also announced a $65 million solar PV and solar battery project to tackle loadshedding.