Bonface Orucho, bird story agency

The recent unveiling of a Japanese strategic partner and mention of an offtake agreement has added fresh momentum to a green hydrogen and ammonia mega-project planned in South Africa’s Eastern Cape Province.

According to Mining Weekly, Itochu Corporation of Japan and Hive Hydrogen South Africa signed an MOU on Friday, December 8, at the Nelson Mandela Stadium in Gqeberha, agreeing to work together in “development, production, operation, marketing, offtake and distribution.”

In a press release by Hive Energy on its website, Hive Chairman Thulani Gcabashe describes the deal, which was agreed on September 25, 2023, as “a historic milestone for the project.”

"The huge positive impact that this project will have on Nelson Mandela Bay, the Eastern Cape, and indeed South Africa is welcomed by us all," he explained.

Hive Hydrogen South Africa, a subsidiary of UK-headquartered Hive Energy, the lead developer in the US $5.8 billion project, plans to operationalize the project by 2028.

The Coega Special Economic Zone site is slated to export green ammonia, hydrogen, and potentially ammonium nitrate to Asia and Europe. It stands as a landmark project, signaling Africa's role in meeting global green hydrogen and ammonia demands.

Once operational, the Coega project will be among the continent's most significant green hydrogen and ammonia-generating projects, besides facilitating the development of wind and solar energy projects.

Project details on the Hive Hydrogen website show a renewable energy (solar and wind) pipeline capacity of 3.6 GW will be required in its first phase. This will be ramped up to 12 GW in subsequent phases.

According to ESI Africa, the South African plant will export up to 900000 tons of green ammonia annually to Japan, Korea, and Europe.

Mauritania's Aman project, however, remains the most prominent green hydrogen pipeline development that could process 1.7 million tons of green ammonia a year from a 30 GW solar and wind energy source that will power a 15 GW electrolyzer facility.

A 2023 report by Rystad Energy, an energy consultancy firm, shows Africa's pipeline of green hydrogen capacity has reached 114 GW spread across 52 projects, mainly in eastern, southern, and western Africa.

Green hydrogen is critical in producing ammonia, an essential requirement in global food systems development, considering it is used in fertilizer production and in other sectors such as maritime transportation. 

"Ammonia is the starting point for all mineral nitrogen fertilizers, forming a bridge between the nitrogen in the air and the food we eat," the IEA outlines in its 'Ammonia Technology Roadmap' 2023 report.

The IEA roadmap shows the historical dependence of fossil fuels, about 70%, on ammonia production. However, with demand for ammonia expected to surge, the need for its production from clean sources remains imperative.

With this, Africa’s extensive renewable energy resources make it an ample supplier of green hydrogen, especially in global markets for deployment in green ammonia production.

In addition to export-focused facilities like Hive Hydrogen's Coega project, investments are pouring into the continent, signaling Africa's emergence as a global hub for green hydrogen supply.

At COP 28, African countries sealed more deals, boosting the continent's green hydrogen capacity. Egypt, a forerunner in such deals, secured three additional agreements to produce green ammonia and a solar energy project.

Ahram Online, an Egyptian news outlet, reports that Norwegian energy company Scatec and other partners such as the AfDB and British International penned the deals with the Egyptian Suez Canal Economic Zone (SCZONE) and the Ministry of Electricity and Renewable Energy.

In October, the North African country signed a US$7 billion deal with Chinese developers for a green hydrogen and ammonia project in the Suez Canal Economic Zone.

Neighboring Morocco is intensifying its green hydrogen ambitions by partnering with a Swiss firm to explore underground hydrogen, marking the first African country to venture into this domain.

On the sidelines of the inaugural Africa Climate Summit in September, Kenya signed a US $13 billion green hydrogen deal with the EU to explore the country's green hydrogen industry.

McKinsey & Company projects that by 2050, Africa will self-supply its domestic green hydrogen demand of between 10 and 18 megatons while exporting about 40 megatons.

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Useful links: https://www.miningweekly.com/article/itochu-hive-hydrogen-sign-memo-on-58bn-coega-green-ammonia-export-project-2023-12-10

https://www.esi-africa.com/renewable-energy/egypt-sign-agreements-for-three-green-energy-projects-at-cop28/

https://english.ahram.org.eg/NewsContent/3/16/513345/Business/Energy/Egypt-signs-agreements-for-three-green-energy-proj.aspx

https://www.bird.africanofilter.org/stories/europe-eyes-africa-as-future-source-of-cheap-green-hydrogen