South Africa has identified the first six priority projects under its national green hydrogen programme, bringing projects spanning sustainable aviation fuel, green ammonia, green methanol and hydrogen-based iron and steel production into a managed government portfolio.
The projects were announced by Electricity and Energy Minister Dr Kgosientsho Ramokgopa at the 2026 African Green Hydrogen Summit in Cape Town on 15 September. They form part of the newly launched National Green Hydrogen Deal Book, which is intended to present a pipeline of projects to investors, development partners and potential customers.
The first-wave portfolio includes projects at different stages of development, ranging from development and pre-feasibility through to front-end engineering design and final investment decision.
Six green hydrogen projects cover multiple applications
The most advanced project in the first wave is Phelan Green Group’s electro-sustainable aviation fuel (e-SAF) project at Saldanha Bay in the Western Cape.
According to the government, the project has reached final investment decision, with Phelan Green committing $100 million in equity and securing an offtake agreement. Construction is expected to start in the first quarter of 2027, while the first e-SAF exports are targeted for the first quarter of 2029.
The remaining five projects cover several downstream applications for green hydrogen and its derivatives.
Hive Energy’s Coega Green Ammonia Project in the Eastern Cape has completed early preparatory work but still requires further commercial, technical and financing work before reaching FID.
The Saldanha Hydrogen Direct Reduced Iron Project on the West Coast is at pre-feasibility stage and is intended to connect green hydrogen with lower-emission iron and steel production.
In the Northern Cape, the Prieska Power Reserve is a green ammonia project aimed at the domestic market and is currently at development stage.
The Green e-Fuels Producers Green Methanol Corridor in Gauteng is also at pre-feasibility stage and targets European demand.
The sixth project, Green Hydrogen Solutions in the Eastern Cape, is a smaller-scale development focused principally on South African demand. It has completed front-end engineering design.
Government seeks clearer development milestones
The priority portfolio is intended to provide a framework for concentrating project preparation, investment mobilisation and government coordination around projects with defined development milestones.
Ramokgopa stressed that inclusion in the Deal Book should not be interpreted as evidence that a project has reached final investment decision or construction.
The minister also distinguished between expressions of investment interest and committed capital, and between memorandums of understanding and bankable customer agreements.
The distinction is significant because the six projects are at different stages of development. Only the Phelan Green e-SAF project is identified by the government as having reached FID, while the other projects still face further development, technical, commercial or financing steps.
Government and its partners intend to use the priority framework to help the remaining five projects progress towards FID, construction and production.
Second wave of projects under consideration
Ramokgopa said a second group of projects had also been assessed and matured for possible inclusion in the priority portfolio.
The development of a second wave would extend the pipeline beyond the six projects currently designated as priorities, although the source does not provide a final list or timetable for those projects.
The government has also emphasised the role of project preparation, finance, infrastructure, technology and market development in moving projects towards implementation.
The Department of Electricity and Energy had identified the 2026 summit as a platform for demonstrating progress in project implementation, financing, infrastructure and industrialisation across the African green hydrogen sector.
South Africa targets broader industrial applications
The first-wave portfolio demonstrates that South Africa’s green hydrogen programme is being developed around multiple end uses rather than hydrogen production alone.
The projects include e-SAF for aviation, ammonia production, green methanol, direct reduced iron and domestic hydrogen applications. This creates a pipeline connecting hydrogen production with fuels, chemicals and industrial processes.
The government has also highlighted South Africa’s renewable resources, industrial base, platinum-group metals, ports, logistics capabilities and scientific capacity as assets relevant to green hydrogen development.
However, Ramokgopa acknowledged that these advantages must be converted into investable projects, infrastructure, customers and coordinated project development.
Bioenergy Business Analysis
The first six projects mark a shift in the way South Africa is presenting its green hydrogen pipeline: from a broad collection of opportunities towards a smaller priority portfolio with defined development stages. For investors and technology providers, the distinction between project concepts, FID, construction and production is particularly important because the six projects do not have the same level of commercial maturity.
The portfolio also shows how green hydrogen is increasingly being linked to downstream products rather than treated solely as an energy carrier. E-SAF, ammonia, methanol and hydrogen-based iron production each require different infrastructure, customers and financing structures. The ability of individual projects to secure offtake, financing and the infrastructure needed to reach construction will therefore remain central to their progress.
The programme’s next test will be whether priority designation translates into measurable movement through FID, construction and production. The government has indicated that projects receiving focused support will be expected to meet defined milestones, while a second wave could broaden the pipeline as additional projects mature.
The first-wave portfolio therefore represents a project-development framework rather than six completed or operational green hydrogen facilities. The government has explicitly positioned the next stage around moving credible projects towards investment, construction and eventual production.
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