R47 billion green hydrogen project in Saldanha Bay gets Strategic Integrated Project status from government

• The South African Government has this week granted the recently announced PhelanGreen Hydrogen Project, the coveted Strategic Integrated Project (SIP) status.

This government SIP legislation, aims to accelerate the development of vital infrastructure,positoning South Africa at the forefront of the green hydrogen sector. Spearheading this ambitious endeavour is Phelan Green Hydrogen (PGH), which will invest R47 billion (US$2.5 Billion) to create the country’s largest green hydrogen project, located in Saldanha,Western Cape, which will generate 85,000 MT pa of Green Hydrogen and derivatives.

This project’s socioeconomic benefits are profound. Over its four-year installation phase, it will inject over 2,500 jobs into the local community, playing a pivotal role in its economic rejuvenation. Upon completion, the endeavour will sustain more than 500 specializedpermanent positions, further bolstering the local skilled workforce.

PGH forecasts the first green hydrogen derivatives’ exports in 2026, with projections indicating a robust annual revenue of R6 billion (US$320m).

Mr. Paschal Phelan, Chairman, commented “This transforma.ve project, is the culmination of three years intensive work by the Phelan Team; to define an optimum standard size installation for lowest cost production, acquire 6,000+ha of suitable land, together with planning approvals, innova.ve engineering and strategic financial planning”.

Author: Bryan Groenendaal