Keren Energy has made significant progress in the development of its green hydrogen (GH2) production facility near Vanrhynsdorp, in the Western Cape, says CEO George van Rensburg.

The project aims to support South Africa’s transition to a low-carbon economy by focusing on small-scale, distributed hydrogen production, tailored for the local industrial, manufacturing, mobility and commercial sectors.

Van Rensburg says the front-end engineering design study and bankable financial model for the project have been completed, with the majority of the permits for the project in place.

The project site has also been secured through a long-term lease.

“Our current priority is engaging with potential offtakers – businesses and sectors seeking to decarbonise through access to green hydrogen,” notes Van Rensburg.

“We are also in discussions with investors and funding institutions to support the development.

“Building market awareness and commercial demand are critical to the project's success.”

He says the project team aims to reach financial close by the end of this year, with production anticipated to start in the first half of 2028.

The total investment required for the project’s full development is around R1-billion.

In the first phase of production, Keren Energy aims to produce about 800 t of green hydrogen a year.

The facility will utilise on-site solar power, supplemented by grid-based renewable energy, to power proton exchange membrane electrolysers that produce green hydrogen in gas form.

The hydrogen will be stored in ISO tube trailers, allowing for flexible, decentralised distribution to end-users, explains Van Rensburg.

This model ensures a cost-effective, scalable and accessible energy solution without the capital costs associated with ammonia or liquid organic hydrogen carriers, which are more suited to large-scale export operations, he notes.

The project in 2023 received Strategic Infrastructure Project (SIP) status from Infrastructure South Africa.

“By providing a reliable, domestic GH2 supply, we intend to help businesses reduce their carbon footprint, thereby mitigating the impact of mechanisms like the EU’s Carbon Border Adjustment Mechanism and supporting the competitiveness of South African exporters,” says Van Rensburg.

Keren Energy focuses on renewable-energy projects in the solar PV, hydro, biomass and GH2 industries.

Green hydrogen is produced by splitting water into hydrogen and oxygen using electricity derived from renewable energy sources, such as solar or wind, through a process called electrolysis.

This method generates a clean and sustainable fuel option with minimal carbon emissions.

Once generated, the green hydrogen is stored in ISO tanks and transported to various industry sectors.

Hydrogen plays a vital role in fuel cells. Currently, South Africa primarily produces hydrogen from fossil fuels, mainly through the steam methane reforming process.

According to the Hydrogen Society Roadmap, the goal is to produce 500 000 t of green hydrogen a year in South Africa by 2030.

The Vanrhynsdorp project is an independent project developed by Keren Energy in the Western Cape, and is not part of the Boegoebaai or Northern Cape Corridor initiatives.