Coega green ammonia project, South Africa – update

Name of the Project
Coega green ammonia project.
Location
Coega Special Economic Zone, alongside the Port of Ngqura, in Gqeberha, in South Africa’s Eastern Cape province.
Project Owner/s
Hive Hydrogen South Africa, which is supported by the UK’s Hive Energy and South Africa’s BuiltAfrica. Hive Energy owns 75% of Hive Hydrogen South Africa, with BuiltAfrica holding the remaining 25%.
Project Description
The project entails the development of a large-scale green ammonia plant at Coega, with a dedicated renewable-energy power supply.
The plant is expected to produce more than one-million tonnes a year of green ammonia using renewable solar and wind energy, desalinated water from the Indian Ocean and nitrogen extracted from the air. The green ammonia will be exported to world markets, including the Far East, Europe and the US.
Hive’s broader renewable-energy supply plan for the project includes solar and wind generation. The 1 430 MW Crossroads Green Energy solar PV cluster, in the Northern Cape, has been fully permitted and is expected to supply about 40% of the Coega plant’s power requirements. The 1 000 MW Carissa wind energy facility, near Beaufort West, has also received environmental authorisation and will help supply the plant.
Potential Job Creation
The project is expected to create more than 20 000 direct and indirect jobs.
Capital Expenditure
$5.8-billion, or about R105-billion.
Planned Start/End Date
Construction is targeted to start in early 2027, with commissioning planned for December 2029. Engineering News has reported that the project is on track to conclude a final investment decision by the third quarter of 2027.
Latest Developments
The project has advanced, with the selection of a $1-billion green hydrogen-generating electrolyser and ammonia-loop solution capable of producing one-million tonnes of green ammonia a year at about $650/t. The selected solid oxide electrolyser technology, supplied by Danish company Topsoe, is expected to reduce the project’s renewable-energy capital expenditure by more than €500-million. Hive Hydrogen has also indicated that the project will benefit from a 25% reduction in electricity transmission and wheeling costs, which is expected to lower operating costs and support a competitive green ammonia selling price.
The project’s environmental-impact assessment (EIA) has been completed and front-end engineering design is under way. Hive Hydrogen has been working on the Coega project since September 2019, and the project is supported by 1 499 MW of wind power and 1 430 MW of solar power. The company is also working with ammonia offtake partners in the Far East and Europe.
The renewable-energy component has also advanced. The Crossroads Green Energy solar PV cluster is fully permitted, while the Carissa wind energy facility has received environmental authorisation. Hive has stated that the completion of the Carissa EIA work means that EIA work has been concluded for its 3 300 MW of renewable-energy assets linked to the Coega project.
Key Contracts, Suppliers and Consultants
Topsoe (solid oxide electrolyser technology linked to the project’s green hydrogen and ammonia-loop solution); AMDA Developments (Carissa wind energy facility developer); Genesis Eco-Energy (wind generation); Akuo Energy, Africoast Investments South Africa and Golden Sunshine Trading South Africa, together with Hive Hydrogen (Crossroads Green Energy solar PV cluster); Blue Crane Environmental (independent EIA practitioner for Carissa wind energy facility).
Contact Details for Project Information
Hive Energy, tel +44 1794 324 343 or email info@hiveenergy.co.uk.
Hive Hydrogen media enquiries: Veronique Grey, email veronique.grey@hivehydrogen.com
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