Northern Cape-based green hydrogen and ammonia project Prieska Power Reserve (PPR) has received formal approval of a funding grant from KfW Development Bank, in partnership with the Industrial Development Corporation (IDC).

“We are making excellent progress across the project’s technical and financial workstreams. With KfW’s support and our ongoing partnership with the IDC, we are well positioned to reach financial close and move into project execution,” says PPR director Martin Walzer.

“The backing from KfW signals strong international confidence in South Africa’s green hydrogen ambitions and reinforces PPR’s role as a catalytic project in the country’s energy transition. This support accelerates our roadmap to becoming a globally competitive producer of green hydrogen and ammonia,” says PPR director Meta Mhlarhi.

“Prieska is the first green ammonia and hydrogen project to receive funding approval from the KfW grant and marks a significant milestone for the project.”

PPR is co-owned and developed by infrastructure investment firm Mahlako and renewable-energy company Central Energy Corporation

PPR is strategically positioned for wind and solar energy generation and spans more than 1 900 ha of privately and municipally owned land in the Northern Cape. The project will produce more than 80 000 t/y of green ammonia by 2027, derived from over 14 000 t of green hydrogen, with plans to scale production to over 500 000 t/y by 2030.

The hydrogen and ammonia processing facility will be located within the Siyathemba local municipality’s industrial zone, thereby enabling integration with local infrastructure.

“The PPR represents a collaborative platform that brings together business, government, and communities to deliver inclusive growth and a just energy transition,” says PPR director Makole Mupita.

Further, as part of its localisation strategy, the project aims to foster women and youth participation, support skills development, and contribute meaningfully to South Africa’s just energy transition.

Once operational, PPR is expected to create more than 400 direct jobs, and thereby advancing inclusive socioeconomic development.