Investment of $20 million in an eco-friendly ammonia production facility in Africa by SA-H2 fund
The Hive Coega Green Ammonia Project, located in Nelson Mandela Bay's Coega Industrial Development Zone, is South Africa's first commercial-scale green ammonia production facility. This groundbreaking initiative is a joint venture between UK-based Hive Energy and South African renewable energy and investment company BuiltAfrica.
Key Partners and Investors
The project's development is led by Hive Hydrogen South Africa. Significant partners and investors include Genesis Energy and Japanese conglomerate ITOCHU Corporation. NEXTCHEM, a subsidiary of MAIRE, is also involved, providing licensing, process design, and engineering services, utilising its proprietary NX eBlue™ electric steam methane reforming technology.
Technology and Production
The project will primarily use renewable electricity, with a permitted 1,430 MW solar PV cluster supplying around 40% of the plant's power needs. Green ammonia production involves low-carbon hydrogen production via NEXTCHEM’s NX eBlue™ technology combined with carbon capture processes to minimise CO2 emissions. The expected hydrogen production is approximately 15,000 normal cubic meters per hour (Nm³/h) of low-carbon hydrogen as a feedstock for ammonia synthesis.
Socio-Economic Benefits
The project is expected to create significant economic value through industrial development, green job creation, and positioning South Africa within emerging low-carbon global value chains, particularly in platinum demand linked to hydrogen technologies. The project is also anticipated to create 20,000 jobs in the construction and operation sectors in the Nelson Mandela Bay region, which has the lowest gross domestic product per capita in South Africa.
Funding and Financing
The SA-H2 funded green ammonia project is a blended finance facility managed by a partnership between climate finance investor Climate Fund Managers (CFM) and development financing institution Invest International, both from the Netherlands. The fund has an option to invest up to $200m in the building phase of the Hive Hydrogen Coega green ammonia project.
Impact and Implications
Once operational, the plant is expected to produce 1 million tonnes of green ammonia per year, making it the largest of its kind in South Africa. The new facility will allow up to 20 gigawatts of additional renewable energy plants to connect to the national grid in South Africa. The plant serves as a sustainable alternative to fossil fuel-based grey ammonia used in hard-to-abate industries such as fertiliser production, shipping, and power generation.
The Hive Coega Green Ammonia Project is a flagship green energy initiative in South Africa, backed by international and local investors, utilising cutting-edge technology to produce green ammonia at scale powered by renewable solar energy. It promises significant implications for economic growth, energy transition, and green hydrogen market development in the region.
- The Hive Coega Green Ammonia Project, a joint venture between Hive Energy and BuiltAfrica, is a flagship green energy initiative in South Africa, utilizing renewable solar energy for green ammonia production.
- Significant partners and investors include Genesis Energy, ITOCHU Corporation, and NEXTCHEM, a subsidiary of MAIRE, which offers licensing, process design, and engineering services for the project.
- The project is expected to create 20,000 jobs in the construction and operation sectors in the Nelson Mandela Bay region and contribute to South Africa's industrial development and green job creation.
- This blended finance facility, managed by Climate Fund Managers and Invest International, could invest up to $200m during the building phase of the Hive Hydrogen Coega green ammonia project.
- Once operational, the plant will produce 1 million tonnes of green ammonia per year, serving as a sustainable alternative to fossil fuel-based grey ammonia in industries like fertilizer production, shipping, and power generation.
- The expected hydrogen production is approximately 15,000 normal cubic meters per hour (Nm³/h), and the project's green ammonia production will enable up to 20 gigawatts of additional renewable energy plants to connect to the national grid in South Africa.
- The project's socio-economic benefits, contributions to the energy transition, and potential implications for South Africa's role in the development of the green hydrogen market highlight the significant impact the Hive Coega Green Ammonia Project may have on the industry, environment, and regional economy.
