South Africa’s $5.8 Billion Coega Green Hydrogen-Ammonia Project Targets 2027 Construction
South Africa’s $5.8-billion green hydrogen and ammonia project in Nelson Mandela Bay is progressing toward construction, with the developer expecting to make further announcements at the Africa Green Hydrogen Summit in Cape Town next month.
The project, being developed by Hive Hydrogen South Africa at the Coega Special Economic Zone in the Eastern Cape, is designed to use renewable energy to produce green hydrogen and convert it into ammonia for export.
The facility is planned to produce about 1 million tonnes of green ammonia a year.
Hive Hydrogen, backed by UK-based Hive Energy and South Africa’s BuiltAfrica, has been developing the project since 2019. The company has already selected a green-hydrogen electrolyser and ammonia-loop solution capable of supporting the planned production capacity.
The project’s renewable-energy requirements are also advancing. Hive Hydrogen has environmental authorisation for the 1,000 MW Carissa wind-energy facility near Beaufort West in the Western Cape, forming part of a broader 3,300 MW renewable-energy portfolio intended to supply the hydrogen and ammonia development.
Construction at Coega could begin in early 2027, with commissioning targeted for December 2029.
The project has moved through environmental assessment and front-end engineering work as its developers prepare for the next stages of development.
The green ammonia is expected to be produced using renewable electricity, desalinated seawater and nitrogen extracted from the air.
The resulting product is intended for international markets, including customers in Europe, Asia and other export destinations.
Financing is also progressing. SA-H2, a blended-finance fund focused on the green hydrogen value chain and energy transition in Southern Africa, has signed a development funding agreement with Hive.
The fund recently reached a first close of R3 billion, with commitments from public and private investors, including the European Commission, Invest International, South Africa’s Public Investment Corporation, Sanlam Life and the Industrial Development Corporation.
The Coega development forms part of Hive’s wider international green hydrogen portfolio, alongside projects in Spain and Chile.
If construction proceeds as planned, the project could become a significant addition to South Africa’s emerging green hydrogen industry, supporting renewable-energy development, industrial activity and the production of low-carbon ammonia for international markets.