- A green hydrogen project in Prieska, Northern Cape, has partnered with the Industrial Development Corporation.
- The IDC has approved a project development funding facility for Prieska Power Reserve, which will help it reach financial close by the first half of 2023.
- The first phase of the project will produce 72 000 tons of green ammonia per year, and 12 900 tons of green hydrogen from 2025.
A green hydrogen project in Prieska, Northern Cape, has secured project development funding through a partnership with the Industrial Development Corporation (IDC).
The Prieska Power Reserve is considered a catalytic project – geared at promoting economic growth and development in the Northern Cape – and will produce green hydrogen and ammonia using renewable energy from solar and wind technologies. The Prieska Power Reserve has begun a process to be classified as a National Strategic Infrastructure Project.
The project developers are Mahlako a Phahla Investments, an African women-owned investment company active in the energy, telecommunications, financial services and social infrastructure space and zero emission energy firm, Central Energy Corporation (CENEC). The IDC joins as a co-developer.
The IDC recently approved a facility – the value of which has not been disclosed – to Prieska Power Reserve. The IDC will also provide non-financial assistance to help the project reach financial close by the first half of 2023. "It is a partnership where all parties will be contributing various skills and resources to facilitate the successful development of the project," a spokesperson from Mahlako said.
It is expected that more funding will be raised to cover total project costs from various sources, including the private sector.
READ | OPINION | How to start a successful giga-scale green hydrogen project
The first phase of the project will produce 72 000 tons of green ammonia per year, the production of 12 900 tons of green hydrogen will begin from 2025 and escalate to over 500 000 by 2030.
So far, the project has completed chemical plant, wind, solar and micro-grid feasibility studies, according to Martin Walzer, director of Prieska Power Reserve. Technical design work is also being finalised. "It is through partnerships such as the one with IDC that we are able to further progress our work," said Walzer.
"With this agreement, we look forward to creating jobs, establishing and growing new enterprises, particularly for women and youth, to fulfil the increasing demand for this new industry," added Cobus Vermeulen, director at Prieska Power Reserve.
The project will also "drastically" reduce carbon emissions, given that green hydrogen is a clean energy source.
"Prieska Power Reserve will catalyse a collaborative approach between business, the province and national government in achieving the country's hydrogen goal and position the Northern Cape as a hydrogen hub," noted Makole Mupita, director of Prieska Power Reserve.
The directors of the project, along with provincial and mayoral offices in the Northern Cape, are currently in Europe seeking to strengthen technical and financial partnerships.
Get the biggest business stories emailed to you every weekday.
Go to the Fin24 front page.