Flourochemicals South Africa (FSA), the Technology Innovation Agency (TIA) and Nelson Mandela University (NMU) have signed a memorandum of agreement (MoA) to advance the Fluorochemicals Strategic Innovation Programme (FSIP).

The TIA is an agency of the Department of Science, Technology and Innovation.

The MoA formalises the development and execution of a national programme aimed at creating a domestic fluorochemicals industry, unlocking the value of South Africa's fluorspar reserves, while reducing the country’s dependence on imported fluorochemicals.

FSA executive director Ivan Radebe describes the FSIP as “a transformative step towards establishing an entirely new industrial value chain in South Africa”.

FSA itself is advancing the development of a 100 000 t/y fluorochemical plant, anchored by a 60 000 t/y high-purity anhydrous hydrogen fluoride (AHF) plant, located on an 80 ha site at the Coega Special Economic Zone (SEZ), in the Eastern Cape.

The AHF plant is slated for commissioning in the third quarter of 2029, and is set to serve both the export and local markets.

While the local market for the direct use of AHF and hydrogen fluoride remains small, it is projected to grow along with the progression of rare-earth and critical minerals processing, lithium-iron-phosphate battery production, and the pharmaceutical and refining industries.

Development and construction of the AHF plant, with an operational life of 30 years, will cost around R3-billion, says Radebe, creating an estimated 150 direct jobs and 1 050 indirect jobs.

The training, research and development aspects of the project will be anchored at NMU, as part of the FSIP, as new skills in the handling and processing of AHF will have to be developed from the bottom up, he adds.

The project team is currently wrapping up key permitting and design activities, with process and storage technology sourced from a European technology vendor.

The project will go to market for engineering, procurement and construction at the end of this year, on a request-for-proposal basis, says Radebe.

The AHF plant is set to be followed by further downstream and even more high-value fluorochemicals, such as fluoropolymers and fluororefrigerants, among others, he notes.

Radebe says the MoA between government and industry comes at an opportune time when global demand for fluorochemicals is accelerating rapidly, driven by growth in sectors such as AI, renewable energy, battery energy storage systems, electric vehicles, pharmaceuticals, nuclear energy and mineral processing.

He says government policies such as the Critical Minerals and Metals Strategy and the Industrial Development Strategy are critical enablers to the establishment of a fluorochemicals industry in South Africa.

“South Africa has one of the largest reserves of fluorspar, a critical mineral regarded as central to technologies that underpin modern life.”

The country also has more than 50 years of fluorine chemistry research and developments located within institutions such as NMU and the University of Pretoria, providing the underpinnings for South Africa to become a key hub for the supply of high-tech fluorochemicals, says Radebe.

Fluorochemicals have properties such as exceptional heat resistance, electrical stability and water-repellence.

These properties require specific handling, know-how and intellectual property, creating high barriers to entry, notes Radebe.

Fluorchemicals is a $30-billion industry and demand for fluorochemicals is projected to increase exponentially, he adds.

Radebe is the founding member of FSA. He is the former MD of NTP Radioisotopes (Europe) SA, and was also the senior manager responsible for developing South Africa’s first utility-scale wind farm on behalf of Eskom.

FSA was established in 2021 by Ivan Radebe and Dimakatso Radebe to develop, own and operate commercially scaled fluorochemicals plants in South Africa.

FSA is wholly-owned by Johannesburg-based BRR Investments Holdings. BRR has interests in the renewable-energy, property, management consulting and chemical sectors.