South Africa has launched a $1 billion (R18.2bn) fund to finance green hydrogen projects to help transition away from fossil fuels.
- The SA-H2 fund was launched by the Dutch and Danish prime ministers during a visit to South Africa.
- The blended finance fund aims to raise $1 billion from the private sector, public enterprises and domestic and international institutions.
- The SA-H2 fund is supported by organizations like Climate Fund Managers, Invest International, the DBSA and IDC.
- The fund will run for 12-15 years and target a return of 4-6% above longer-dated government bonds.
- The fund will pursue economic, social and climate benefits.
- The CEO of CFM said green hydrogen is the pathway to the global energy transition and South Africa has potential to become a world leader in the sector.
- The DBSA said the fund is a significant addition to South Africa’s efforts to leverage its renewable energy infrastructure.
- Green hydrogen could enable job creation and new skills development in South Africa.
- The CEO of Sanlam said green hydrogen offers huge potential to solve South Africa’s energy challenges.