Green hydrogen: two SA coastal hubs power Africa’s future
By Adrian Ephraim
WESTERN Cape Premier Alan Winde’s message at June’s Africa Green Hydrogen Summit was blunt: “We must move from PowerPoint to gigawatts.”
Two industrial zones on South Africa’s coast are racing to answer that call. In the Western Cape, Saldanha Bay is being reimagined as a multi-billion-dollar hydrogen export hub. Nearly 800 kilometres east, the Coega Industrial Development Zone is assembling what could become Africa’s largest green ammonia plant.
Both are betting they can capture a slice of what the European Union alone estimates will be a 10-million-tonne annual hydrogen import market by 2030.
Saldanha: The master-planned hub
This year, the Council for Scientific and Industrial Research (CSIR) was appointed to coordinate Phase 1 of the West Coast Green Hydrogen Master Plan – comprehensive spatial planning before construction begins.
“In the Saldanha context, the water would probably need to be sourced from desalination of seawater, if green hydrogen is produced at scale,” explains Paul Lochner, CSIR research group leader. The methodical approach identifies constraints early and creates common-use infrastructure benefiting multiple projects.
The Western Cape’s Green Hydrogen Strategy, approved in May 2024, sets ambitious targets: facilitate 15 gigawatts of renewable energy capacity by 2035, producing between 300,000 and 420,000 tonnes of green hydrogen annually for export.
“Green hydrogen presents an opportunity for South Africa and the EU to work together towards achieving decarbonisation,” said Wesgro CEO Wrenelle Stander.
The clearest vote of confidence came from Phelan Green Energy’s R47 billion project to build South Africa’s largest green hydrogen complex at Saldanha. At June’s summit, the company announced a strategic pivot: the primary export will be eMethanol rather than ammonia.
“This is about delivering what the market wants, now, and we have secured offtake agreements in Europe,” said Blair Phelan, Director of Development at Phelan Green Group. The project will export 400,000 tonnes per year of eMethanol, generating over €500 million annually and creating 2,500 construction jobs with 500 permanent positions.
Finance Minister Mireille Wenger emphasised the partnership model: “Building a green, energy resilient future will not be possible without partnerships across all levels of government as well as the private sector.”
Coega: The mega-project approach
While Saldanha pursues a hub model with multiple projects, Coega has backed a single, massive development. The Coega Green Ammonia Project secured $20 million in June 2025 from SA-H2 Fund – a defining moment for South Africa’s hydrogen economy.
“This is a landmark first investment for SA-H2,” said Sebastiaan Surie, Head of New Ventures at Climate Fund Managers. “Hive’s project brings together scale, technical ambition and global relevance.”
The numbers are staggering: 1 million tonnes of green ammonia annually by 2029, powered by 3.5 gigawatts of renewable energy. In June 2025, Hive Hydrogen completed the Crossroads solar cluster – 1,430 megawatts across nine solar farms supplying 40% of the plant’s power.
“Our R105-billion Coega Green Ammonia Project development remains firmly on track to achieve commercial operation in Q4 2029,” said Thulani Gcabashe, Chairman of Hive Hydrogen South Africa.
In October 2025, European Commission President Ursula von der Leyen elevated Coega to flagship status within the EU’s green hydrogen roadmap, opening access to innovation funds and facilitating off-take negotiations.
The project targets a final investment decision in Q3 2026, with construction beginning in early 2027. “Exportation is due to begin in 2029/2030 at a price point that leads international green ammonia pricing and will outcompete blue ammonia pricing,” according to project documentation.
Beyond energy production, Coega promises more than 20,000 direct and indirect jobs, water security through oversized desalination capacity, and grid strengthening that could unlock 20,000 MW of additional capacity for other renewable projects.
Two models, one goal
Saldanha represents coordinated hub development – slower upfront but potentially more resilient and diversified. Coega represents the mega-project approach – faster to production but with higher risk concentration.
Both face identical challenges: infrastructure gaps, financing constraints, skills shortages, and fierce international competition from Chile, Australia, North Africa, and the Middle East.
The 2025-2029 window is critical. European Union targets for 2030, combined with Japan and South Korea’s decarbonization commitments, create genuine demand. Projects delivered by 2029-2030 can capture first-mover advantages. Those arriving later face stiffer competition.
Rather than competitors, Saldanha and Coega represent complementary approaches to establishing South Africa’s hydrogen economy. Coega’s mega-project can demonstrate technical feasibility at scale. Saldanha’s hub can create a diversified ecosystem less dependent on any single project.
President Cyril Ramaphosa positioned hydrogen as “a key pillar of South Africa’s energy and economic future.” Whether that vision translates into gigawatts of production capacity, thousands of jobs, and billions in export revenue depends on execution over the coming years.
The strategies are in place. The projects are advancing. The international interest is genuine. Now comes the hard part: delivering production capacity on timelines that meet market windows.
As Premier Winde said, “It’s time to move from PowerPoint to gigawatts. South Africa’s hydrogen future rides on its success.”
