JOHANNESBURG (miningweeekly.com) – The green hydrogen and green ammonia project in South Africa’s Nelson Mandela Bay has taken a major step forward.

Its latest advance involves the selection of a $1-billion green hydrogen generating electrolyser and ammonia loop solution, which is capable of producing a million tonnes of green ammonia a year at $650/t.

The project is being developed by Hive Hydrogen, underpinned by Hive Energy of the UK and BuiltAfrica of South Africa.

Hive Energy is headed by co-owner and CEO Giles Redpath and BuiltAfrica is headed by Thulani Gcabashe, a former CEO of Eskom and a former chairperson of Standard Bank.

The environmental-impact assessment has been completed and the front end engineering design is under way.

Hive Hydrogen has been working since September 2019 to establish the renewable-energy-powered plant for the Coega project, which is on track to conclude final investment decision (FID) by the third quarter of next year.

The project is underpinned by 1 499 MW of wind power and 1 430 MW of solar power, and is partnering ammonia offtake companies in the Far East and Europe.

The solid oxide electrolyser technology from Danish company Topsoe reduces capital expenditure on renewables by €0.5-billion-plus and the project will also benefit from a 25% reduction in electricity transmission and wheeling costs, which lowers overall operating costs and brings down the selling price of its unsubsidised green ammonia to “one of the lowest globally”, Hive Hydrogen stated in a media release to Mining Weekly.

Last year, Electricity and Energy Minister Dr Kgosientsho Ramokgopa conferred ‘lighthouse’ excellence status to the $5.8-billion project, which is capturing global attention.

Hive Hydrogen GM Colin Loubser has expressed the belief that the project will likely provide the world’s lowest-cost green ammonia, a product that enables unacceptable sea pollution to be brought to an end. The maritime business is a heavy polluter of the oceans. The use of heavy fuel oils and diesels not only pollutes the air, but spillages also pollute the water and the sector has major carbonisation issues.

As a consequence, the number of ships that have been commissioned to run on green ammonia as a maritime fuel is increasing exponentially.

The green ammonia engines for shipping have reached technology readiness level nine, which means they are bankable and of high quality.

Shifts in green ammonia demand are arising out of the fertiliser industry.

Interestingly, the Hydrogen Council reports from Milan and Brussels that $110-billion worth of investment is now committed to more than 500 clean hydrogen projects that are past FID, in construction, or already operational.

Since 2020, the sector has averaged a 50% year-over-year committed investment growth rate, the council’s Global Hydrogen Compass, which is co-authored with McKinsey & Company, reports.

Total committed capacity now exceeds six-million tonnes per year (mtpa), including 1 mtpa already in operation.

On the demand side, about 3.6 mtpa of binding offtake has been secured. As policy clarity emerges in key markets such as the EU, US, Japan, and Korea, up to 8 mtpa of clean hydrogen demand could materialise by 2030.

China is leading the world with committed investment of $33-billion and more than half of the world’s renewable hydrogen production capacity. North America is next with $23-billion, and Europe third with $19-billion.

Despite a challenging environment, 74% of CEOs surveyed reported stable or increased investment appetite over the last two years while 97% expressed the belief that hydrogen would be a critical decarbonisation solution for hard-to-abate sectors. More than 80 expected hydrogen industry growth to continue.

In the view of the Global Hydrogen Compass hydrogen’s entry into the next chapter of build-out is moving from ambition to delivery. “We’re seeing tangible proof of progress,” said Hyundai vice-chair Jaehoon Chang.

Meanwhile, Hydrogen South Africa’s establishment of the rapid prototyping, testing, and training facility at North-West University is viewed as demonstrating self-development of high-tier, industrial-grade technology, using South Africa’s own strategic platinum group metals resources to create proprietary solutions.

In Namibia, the large 7 GW green hydrogen Hyphen project has secured €300 000 in matched funding under a private sector support instrument of the German Federal Ministry for Economic Affairs and Energy.

In Germany, substantial sums are being spent to make green hydrogen the country’s next industrial fuel capable of decarbonising steel, cement, chemicals, and heavy shipping. The H2 Global initiative connects German industry with green hydrogen suppliers amid ports in Hamburg and Brunsbüttel being converted into green hydrogen import hubs. Germany is reportedly intent on driving down costs through scale. The country that built Europe's most powerful industrial economy on coal and gas is now engineering the next one on water and wind.

Also in Germany, Shell Low Carbon Solutions’ 100 MW renewable hydrogen electrolyser under construction is expected to begin operating in 2027 and be capable of producing up to 44 t/d of green hydrogen. Shell’s target is to become a net-zero emissions energy business by 2050.

In Spain, subsidisation is being provided to three projects with a combined 250 MW of electrolysis capacity under the country’s second Auction-as-a-Service green hydrogen scheme to decarbonise industrial activities in Huelva and Albacete.

In Chile, there is an ambition to use forceful Patagonian wind to enable green hydrogen to undercut natural gas prices by 2030.

Under way in Rotterdam is the World Hydrogen Summit, where Rotterdam Port CEO Boudewijn Siemons has called for all types of hydrogen to be expanded for the purpose of building out the hydrogen market and where Air Liquide is showcasing its hydrogen value chain know-how.