South Africa: the SA-H2 Fund raises 185 million dollars for green hydrogen
The SA-H2 Fund has secured an initial funding of 3 billion rand, or about 185 million dollars, to support the development of green hydrogen projects and its derivatives in South Africa. Managed by Climate Fund Managers, the vehicle aims for a final size of 12 billion rand by mid-2028.
SUMMARY
The fund announced this first financial closure in a statement released on Thursday, August 6. The capital is to be used to finance projects related to hydrogen produced from renewable energies, a still emerging sector expected to contribute to the decarbonization of heavily emitting industrial activities.
This initiative expands the scope of financing dedicated to energy transition in South Africa, which has so far been mainly focused on solar and wind energy. Green hydrogen could specifically be used in sectors where direct electrification remains challenging, as well as for producing derivatives intended for transport, industry, or export.
A goal of 12 billion rand by 2028
The SA-H2 Fund aims to increase its resources to 12 billion rand by mid-2028. However, the final amount mobilized will depend on upcoming fundraising efforts and the realization of selected projects.
The management of the fund has been entrusted to Climate Fund Managers, specialized in financing climate-related infrastructure. The available information does not yet specify the distribution of investments, the number of projects involved, or their implementation timeline.
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