- The Industrial Development Corporation of South Africa Limited (IDC) and Germany’s KfW Development Bank, have signed an MOU that will lead to strengthening of cooperation between the two funding entities – more so as the IDC seeks to ramp up its financial support to the development of South Africa’s green hydrogen economy.
- As part of this agreement, the parties will conclude an agreement which will enable the IDC to manage €23 million in grant funds from the German Government.
The IDC is playing a leading role in the development of a Green Hydrogen Commercialisation Strategy (GHCS) for South Africa through its chairmanship and secretariat of the Green Hydrogen Panel. The sourcing and structuring of different financing instruments namely grants, concessional debt and price subsidies also known as contract for differences from various financing entities is critical to the success of the GHCS. These include both local and International Development Finance Institutions (DFIs).
Related news: Gates are opening for the gigawatt scale green hydrogen projects in South Africa
This grant facility is a game changer especially given the exciting industrialisation opportunity presented by the Green Hydrogen Economy. Collaboration between different Development Finance Institutions in providing blended finance solutions is a key in the development of catalytic green hydrogen projects “said IDC Chief Operations Officer (COO) Joanne Bate.
Related news: South Africa’s Public Investment Corporation adopts green hydrogen strategy
KfW representative Babette Stein von Kamienski, Head of Division Infrastructure Southern Africacommended the IDC for its role and government efforts in helping South Africa adopt sustainable but Just Energy Transition. “KfW will continue to support the IDC in its mandate to promote the market development of a green hydrogen economy in South Africa. We hope this facility will help the IDC to address the funding gap for projects that have identified opportunities in SA’s decabonisation efforts but are constrained by funding challenges, “said Babette Stein von Kamienski.
Author: Bryan Groenendaal
