Coega renewable ammonia: development funding secured, solar plant finalised
By on July 02, 2025
$20 million from SA-H2 Fund
Click to learn more. The Coega Green Ammonia project will produce 1 million tonnes of ammonia per year, targeting demand centres in Asia and Europe. Source: Hive Energy.
The Coega renewable ammonia project, which is targeting a 1 million tons per year production capacity once operational in 2029, has received $20 million in development funding from blended finance facility SA-H2 Fund. The funding will cover engineering, procurement and construction selection, FEED and will also go toward completion of permitting, environmental and social impact assessments prior to offtake finalisation and financial close preparation.
Also part of the funding agreement, SA-H2 Fund, which is jointly managed by Climate Fund Managers (CFM) and Dutch development financing institution Invest International, has the right to participate in construction funding for up to$200 million. Targeting FID in H2 2026, the project is expected to become the country’s first large-scale renewable ammonia production facility once operational.
Targeting growing export to growing demand centres in Asia and Europe, in 2023, Hive Hydrogen signed an agreement with ITOCHU as a potential strategic equity investor and off taker in the project. Reflecting its national significance, the Coega project was granted “Strategic Integrated Project” status by the South African Presidency.
This is a landmark first investment for SA-H2 and a defining project for the country’s green hydrogen economy. Hive’s project brings together scale, technical ambition and global relevance – and has the potential to position South Africa as a competitive exporter of low-carbon energy. By deploying public capital to absorb early-stage risk, our blended finance model enables private capital to invest in the construction of this pioneering green ammonia plant on terms aligned with their mandates, accelerating the global energy transition.
Sebastiaan Surie, Head of New Ventures at CFM, in his organisation’s official press release 12 June 2025
Solar park fully developed, construction next year
The development phase of a 1430 MW solar park, which will supply 40% of the Coega renewable ammonia plant’s power requirements, has been completed and fully permitted, marking a key milestone in the project. The cluster, officially referred to as the Crossroads Green Energy Project, consists of 9 solar PV sites located close to the towns of Philipstown, Petrusville and Vanderkloof. The sites have been jointly developed by Hive Hydrogen and a consortium of French renewable energy developer and IPP company Akuo Energy, Africoast Investments South Africa and Golden Sunshine Trading South Africa. The project is expected to cost an estimated $850 million.
Environmental Impact Assessment (EIA) Records of Decision have been successfully completed and all required permits and clearances for the entire project have been obtained. Construction is expected to commence in Q4 2026. The solar plant will be developed in an area with globally competitive solar irradiation, and will be the largest solar PV project in the country and in the southern hemisphere.
Our solar development phase has been strongly supported by the South African government through the Strategic Integrated Projects Team who have assisted us throughout the extensive consent and permitting processes necessary and are very thankful for their diligence, dedication and backing. With the conclusion now of this phase, our R105bn Coega Green Ammonia Project development remains firmly on track to achieve commercial operation in Q4 2029. Additionally, we are pleased that our project’s planned grid strengthening program will unlock as much as 20,000 MW of additional grid capacity for Independent Power Producers in South Africa to connect their large projects to the grid.
Thulani Gcabashe, Chairman of Hive Hydrogen South Africa, in his organisation’s official press release, 12 June 2025
Crossroads Green Energy is an exceptional ‘best practice’ solar power plant development that utilises a maximum of 10% of agricultural land ensuring minimal environmental impact. This approach allows the co-existence of agricultural production and renewable energy investments and provides a clear example of responsible and sustainable investments in green energy projects. All land is fully restored to its original state when the plant is decommissioned.
Donald McGillivary and Venance da Silva, Directors at Africoast Investments, in Hive Energy’s official press release, 12 June 2025