JOHANNESBERG, May 19 – South African developer Hive Hydrogen has announced that it has selected Danish manufacturer Topsoe to supply 850MW of solid-oxide electrolysers (SOEs) for its $5.8 billion Coega green hydrogen and ammonia project in South Africa, the project developers said late on Monday
Topsoe to supply electrolyser cell technology and other equipment in a deal valued around $1 billion, which is being developed in partnership with Hive Energy Ltd and BuiltAfrica Group with the facility planned for South Africa’s Eastern Cape province and is expected to begin operations in 2030.
The project carries a total estimated cost of more than $5 billion and is designed to produce around one million tons of green ammonia annually. It is anchored at the Port of Coega, which is emerging as a key hub for large-scale hydrogen-linked investments in the country.
Hive said the equipment will use Topsoe’s Solid Oxide Electrolyzer Cell technology and will support an 850-megawatt electrolyzer system and the company estimates the technology will cut renewable energy-related capital spending by more than €0.5 billion ($583 million).
Chief Executive Officer Giles Redpath said the efficiency gains improve the project’s cost structure as it moves toward final investment decisions.
Still, the economics of green hydrogen remain under scrutiny, with critics questioning whether production costs can fall fast enough to compete with fossil fuels such as diesel in global markets.
Hive has indicated it expects to sell green ammonia at about $650 per ton at the export port, with demand targeted at industrial buyers in markets such as Japan and South Korea.
Green hydrogen, produced by using renewable energy to split water into hydrogen and oxygen, is being promoted as a cleaner alternative fuel for heavy industry and shipping. South Africa is competing with countries such as Namibia to position itself as a leading exporter, supported by strong solar and wind resources.
The company said it is still seeking additional investors and lenders to fund the project as it moves through development stages.
