SA Takes On Growing Global ‘Green Aviation Fuel’ Market
As tighter European regulations drive greater demand for lower-carbon aviation fuels, South Africa has staked a claim in this growing export market with the signing of a landmark 200MW electrolyser supply agreement that is the largest ever in Africa and the first tranche of a 800MW electro-Sustainable Aviation Fuel (eSAF) production project at Saldanha Bay.
A growing demand for large-scale electro-Sustainable Aviation Fuel (eSAF) – also referred to as “green aviation fuel” – is being fuelled by the EU’s decarbonisation of aviation and is creating opportunities for eSAF production beyond Europe’s borders.
Fuel suppliers to the European aviation industry are required to blend increasing volumes of lower-carbon aviation fuel into conventional jet fuel, or face significant financial penalties for non-compliance with the European Union’s ReFuelEU Aviation regulation and Germany’s Sustainable Aviation Fuel (SAF) mandates.
This creates an opportunity for South African companies in one of the most demand-constrained segments of the global energy transition: to contribute meaningful new supply of eSAF and become a competitive export partner of “green aviation fuel” for the European Union and other regulated aviation markets.
A defining moment for South African clean fuels
South Africa is poised to take on a share of this growing export opportunity with the recent signing of a 200MW electrolyser supply agreement between Phelan Green Group and Sungrow Hydrogen, a subsidiary of Sungrow Power Supply Co. Ltd.
The order represents the single largest electrolyser order ever placed on the African continent and one of the largest single electrolyser order ever placed with Sungrow Hydrogen globally
It is also the first tranche of a planned 800 MW programme to be deployed at Phelan Green Group’s flagship eSAF production project at Saldanha Bay, where construction starts in September 2026.
Building on local advantages
Located in the Western Cape, South Africa, Saldanha Bay’s combination of world-class renewable resources, deep-water port infrastructure and Saldanha Bay Economic Zone (SEZ) status makes it one of the most competitive locations globally for green hydrogen and its derivatives.
Phelan Green Group’s Saldanha Bay project is being developed to produce eSAF from renewable electricity from a combination of solar, wind and battery storage infrastructure, water, and captured biogenic CO₂, while meeting the European eligibility requirements.
The first-phase 200MW production at Saldanha Bay will underpin a further 600MW of capacity, supporting construction employment, manufacturing activity, and export revenues well into the future.
High-level commitment
The agreement was signed by Blair Phelan, Managing Director of Phelan Green Group, and Peng Chaocai, Vice President of Sungrow and Chairman of Sungrow Hydrogen, in a ceremony attended by the Honourable Samantha Graham-Maré, Deputy Minister of Electricity and Energy of the Republic of South Africa and H.E. Mr Vusimuzi Madonsela, the South African Ambassador to the Kingdom of the Netherlands, alongside senior representatives of both companies and project stakeholders.
“Signing the largest electrolyser order ever placed on the African continent is a defining moment for our Group and for the South African green-fuels industry,” comments Blair Phelan, Managing Director of Phelan Green Group. “Sungrow Hydrogen is one of the leading electrolyser manufacturers in the world, and their technology gives us the scale, efficiency and delivery certainty we need to take our Saldanha Bay eSAF project through to construction: the start of a globally competitive eSAF platform right here in South Africa.”
Fired up for the future
“The growing European interest in securing future eSAF supply from stable export partners is further underscored by our final-stage offtake negotiations with two major UK and EU refineries,” concludes Phelan. “It is expected that the Saldanha Bay eSAF project will produce 35,000 tons of eSAF for export to EU and other regulated markets per year.
“In addition, at the European Union’s 2030 synthetic aviation fuel mandate level, we project that the Saldanha Bay facility could eventually supply approximately 6% of projected EU eSAF demand for fuel uplifted at EU airports – positioning South Africa as a strategic production hub for eSAF.”
