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Prieska Power Reserve project, South Africa – update

Image of green hydrogen electrolysis

5th September 2025

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Prieska Power Reserve project.

Location
Prieska, in the Northern Cape, South Africa.

Project Owner/s
Mahlako Energy Fund, a women-owned empowerment consortium, and Central Energy Corporation (Cenec), a Bloemfontein-based emission energy company and South Africa’s State-owned Industrial Development Corporation (IDC).

Project Description
The green hydrogen project has been identified as strategic in the Northern Cape’s green hydrogen strategy and has been classified as a national Strategic Infrastructure Project.

The project aims to produce 500 000 t/y of ammonia by 2030.

The first phase will result in the production of 80 000 t/y of green ammonia with a green hydrogen content of about 14 500 t/y.

Potential Job Creation
Not stated.

Capital Expenditure
Not stated.

Planned Start/End Date
The project is expected to reach financial close in the first half of 2023 and to start producing green hydrogen and ammonia in 2025.

Latest Developments
Project development funding is being partly sourced from the German Kreditanstalt für Wiederaufbau (KfW), South Africa’s IDC, which has also approved development funding to the project.

The 14 500 t/y green hydrogen content will be produced by a 120 MW electrolyser. Renewable-energy sources comprising 180 MWp of solar PV power and 136 MWp of wind power will power the electrolyser. The project includes a 45 MW battery storage system to ensure continuous 24-hour operation.

Power Reserve has said local procurement is being targeted for everything, from construction materials to day-to-day operations, which will strengthen regional supply chains.

Skills partnerships with nearby technical colleges are also being established to equip young talent for careers in hydrogen infrastructure.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Prieska Power Reserve, Sophie Masipa, email media@mahlako.co.za.

Edited by Creamer Media Reporter

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