Phelan Green Energy, an independent solar power producer, has revealed its motive to invest ZAR 47 billion to construct a green hydrogen and ammonia production facility in the Western Cape region ofSouth Africa. The company will build the facility through its subsidiary Solar Capital and anticipates making over ZAR 6 billion in income from exporting the green fuel each year.
Furthermore, the production facility, known as the Saldanha Green Hydrogen Project, is anticipated to begin its inaugural shipments in early 2026. The investor stated that planning efforts are in progress and will be completed by the third quarter of 2024, following which an investment conclusion will be made. Over 500 permanent positions will become available over the plant’s operational life, while the hydrogen project is anticipated to generate 2,500 jobs during the development phase.
In September 2023, South Africa signed project agreements with two additional preferred bidders appointed under the Risk Mitigation Independent Power Producer Procurement Programme, in Pretoria for two hybrid projects. Gwede Mantashe, Minister of Mineral Resources and Energy finalised an agreement of 203 MW with bidders. The projects consisted of a combination of battery storage technologies, solar PV and onshore wind.