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South Africa’s Coega green ammonia project picks Denmark’s Topsoe for $1 billion deal

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  • Coega Green Ammonia Project selects Denmark’s Topsoe for a US$1 billion electrolyser and ammonia technology package.
  • US$5.8 billion development targets more than 1 million tonnes of green ammonia production annually by 2030 for export.
  • Project developers say Topsoe technology could reduce renewable energy capex by more than €0.5 billion.

South Africa’s Coega Green Ammonia Project has selected Danish engineering company Topsoe to supply electrolyser cell technology and ammonia loop solutions for its planned green fuels facility in the Eastern Cape, in a deal valued at approximately US$1 billion.

The US$5.8 billion project, located at the Port of Ngqura in Nelson Mandela Bay, is being jointly developed by UK based Hive Energy (75%) and South African partner BuiltAfrica (25%). The development is positioning South Africa to compete with emerging green hydrogen hubs in Namibia and Morocco as global demand for green ammonia accelerates across Europe and Asia.

The facility is expected to produce more than 1 million tonnes of green ammonia annually for export markets by 2030. Green ammonia is produced using renewable electricity from solar and wind energy and is increasingly viewed as a critical decarbonisation fuel for fertiliser production, heavy industry and maritime transport.

Hive Energy CEO Giles Redpath said Topsoe’s solid oxide electrolyser technology would significantly improve the project’s economics by reducing renewable energy capital expenditure by more than €0.5 billion.

The integrated renewable energy complex will include 1,430 MW of solar PV generation and 1,499 MW of wind power capacity dedicated to powering the ammonia production facility. Environmental permitting for the solar cluster has already been completed, while the Environmental Impact Assessment for the ammonia plant has also been finalised.

The Coega development is among the largest green ammonia projects currently under development in Africa and reflects growing investor confidence in the continent’s renewable energy export potential.

Author: Bryan Groenendaal

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