Green Hydrogen South Africa funding program (Financed from allocated funds from the BMWK)

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On behalf of the German Federal Government, KfW is supporting the Industrial Development Corporation (IDC) in its mandate to promote the market development of a green hydrogen economy in South Africa. The aim of the project is to support catalytic projects financed by the IDC to make an initial significant contribution to the market ramp-up of green hydrogen and its derivatives. The project addresses the challenge of sustainably building a green hydrogen economy in South Africa, including financing reference plants required in the first phase of this market build-up. The project is aligned with the national strategic vision of developing the South African hydrogen market and thus fits into IDC's corporate strategy and government mandate. On the way to a carbon-neutral future, green hydrogen applications can form the fourth pillar of the energy transition alongside renewable energy, energy efficiency and smart grids. This is especially true for sectors where energy efficiency and the direct use of electricity from renewable energy sources are not sufficient (e.g. industry, chemicals and heavy-duty transport). Finally, the development of a hydrogen economy and the strengthening of South Africa as a global hydrogen partner country will also create new jobs and thus contribute to a socially acceptable energy transition in South Africa (Just Energy Transition - JET).