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Coega green ammonia project, South Africa – update

Image of green ammonia formula

11th July 2025

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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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.
BuiltAfrica owns 25% of Hive Hydrogen South Africa and the UK’s Hive Energy (75%).

Project Description
The project aims to establish a green ammonia plant producing more than one-million tonnes a year, with its own dedicated power supply, for export to Japan, Korea and Europe.

The Coega project will have a Haber-Bosch Ammonia loop producing 1 000 000 t/y, a 1 120 MW of green hydrogen electrolyser, up to four 35 000 t ammonia storage tanks and a 7 km cryogenic ammonia pipeline linking the plant to the deep-water export berth in the Port of Ngqura.

The project development will also enable other independent power producers (IPPs) in the Beaufort West area to connect their power generation assets to the grid.

The project has full environmental approval.

Potential Job Creation
The project will create more than 20 000 jobs.

Capital Expenditure
$5.8-billion (R105-billion).

Planned Start/End Date
Output of green ammonia from the new facility could start in 2029.

Latest Developments
The final stage of development has started with the release of requests for proposals (RfPs) to 15 shortlisted engineering, procurement and construction (EPC) firms, selected from 48 responses to Hive Hydrogen’s earlier request for information.

The RfPs cover the front-end engineering design and construction of the green ammonia plant, seawater abstraction, desalination and demineralisation plants, two 7 km ammonia pipelines with 70 000 t storage capacity, a 1 430 MW solar PV cluster comprising nine farms, and 1 879 MW of wind capacity from ten farms.

The release follows the conferral of “lighthouse project” status on the Coega project by South Africa’s Electricity and Energy Minister Dr Kgosientsho Ramokgopa at the Africa Green Hydrogen Summit, during which a R360-million development funding agreement was announced to advance the project to final investment decision (FID).

Hive Hydrogen chairperson Thulani Gcabashe noted that this milestone culminated four years of intensive development involving over 120 professionals across engineering, legal, environmental, financial and project management disciplines.

The project continues to draw strong international interest, with EPCs from the UK, Europe and the Far East collaborating with local partners. A group of strategic investors – including ammonia offtakers, shipping firms, OEMs and plant operators – has signalled interest in taking equity positions ahead of the expected FID in Q3 2026.

Hive Hydrogen, supported by Hive Energy and BuiltAfrica, has been developing the $5.8-billion project since 2020. It will export green ammonia – derived from green hydrogen – to international markets at a price point expected to lead global benchmarks and undercut blue ammonia.

The project remains on track to begin commercial operations in late 2029, with permitting secured for the 1 430 MW solar PV component that will supply 40% of the plant’s power requirements. Wind development is progressing in parallel, with two clusters totalling 1 880 MW also planned.

Key Contracts, Suppliers and Consultants
Genesis Eco-Energy (wind generation) and Hive Hydrogen; Akuo Energy Afrique; Africoast Investments and Golden Sunshine Trading (Crossroads Green Energy cluster).

Contact Details for Project Information
Hive Energy, tel +44 1794 324 343 or email info@hiveenergy.co.uk.

Edited by Creamer Media Reporter

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