- South Africa: Prieska Power Reserve has secured project development funding through a partnership with the Industrial Development Corporation (IDC), a state owned entity.
The Prieska Power Reserve Project is a catalytic project that will start producing green hydrogen and ammonia in 2025 through a combination of high yielding renewable solar and wind energy resources, along with the other natural resources of water and air.
The project developers are Mahlako a Phahla Investments, the Central Energy Corporation (CENEC) and now the IDC joins as a co-developer. The IDC did not specify the amount of the facility. They will also provide non-financial assistance to help the project reach financial close by the first half of 2023.
Mahlako is an African women-owned, advisory and alternative investment management firm focused on the delivery of implementable and effective socio-economic developmental assets and solutions that deliver sustainable impact and superior risk adjusted return profiles over the long term. It has a with a 50% equity shareholding at Prieska Power Reserve.
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.
“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.
Author: Bryan Groenendaal