Germany’s KfW provides EUR 23.1 million to South Africa’s IDC to promote sustainable hydrogen economy

Google+ Pinterest LinkedIn Tumblr +
  • KfW signed a contract with the South African state-owned promotional bank Industrial Development Corporation (IDC) for EUR 23.1 million to start a promotional programme to build a sustainable hydrogen economy.
  • IDC will use this to finance reference projects for the large-scale production and use of green hydrogen and its by-products.
  • These include, for example, hydrogen-powered lorries and buses for long-haul transport, the production of sustainable aviation fuel and the production of green ammonia for export.

“With its large areas of available land and extraordinarily large number of renewable energy sources, South Africa offers excellent general conditions for the development of a thriving, globally competitive green hydrogen industry. At the same time, our support makes a significant contribution to South Africaโ€™s economic development and job creation, thus contributing to a socially acceptable energy transition in South Africa,โ€said Christiane Laibach, Member of the Executive Board of KfW Group.

The greatest challenge for green hydrogen and its downstream products is the large price difference compared to conventionally produced hydrogen from fossil fuels. The financial support for these projects is intended to improve their profitability and thus raise the interest of additional private investors as well as alleviate uncertainties regarding the green hydrogen market.

The funds are a further contribution to the Just Energy Transition Partnership (JET-P), which South Africa agreed with Germany, three other countries and the EU at the UN Climate Change Conference in Glasgow. As part of the JET-P, commitments of up to USD 8.5 billion were made to South Africa by the partner countries for the next three to five years in order to support South Africaโ€™s phase-out of coal as it moves towards a more environmentally sustainable economy.

Author: Bryan Groenendaal

Share.

Leave A Reply

About Author

Green Building Africa promotes the need for net carbon zero buildings and cities in Africa. We are fiercely independent and encourage outlying thinkers to contribute to the #netcarbonzero movement. Climate change is upon us and now is the time to react in a more diverse and broader approach to sustainability in the built environment. We challenge architects, property developers, urban planners, renewable energy professionals and green building specialists. We also challenge the funding houses and regulators and the role they play in facilitating investment into green projects. Lastly, we explore and investigate new technology and real-time data to speed up the journey in realising a net carbon zero environment for our children.

Copyright Green Building Africa 2024.