NELSON MANDELA BAY, SOUTH AFRICA — South Africa’s ambitious push to become a global hub for green energy has taken a monumental step forward. Hive Hydrogen South Africa, the developer behind the $5.8 billion Coega Green Ammonia Project, has officially selected Danish energy technology giant Topsoe for a $1 billion equipment and technology contract.
The mega-project, located in the Coega Special Economic Zone alongside the deep-water Port of Ngqura in the Eastern Cape, aims to produce one million metric tons of green ammonia annually by 2030. The facility is being jointly developed by UK-based Hive Energy and South African infrastructure firm BuiltAfrica.
Under the newly announced $1 billion agreement, Topsoe will supply its cutting-edge solid oxide electrolyser cell (SOEC) technology and ammonia loop synthesis solutions. Hive Energy CEO Giles Redpath noted that integrating Topsoe’s highly efficient technology will drastically reduce the project’s renewable energy capital expenditure by more than $580 million (€500 million), while also lowering electricity transmission and wheeling costs by an estimated 25%.
“This combination of scale, renewable energy capacity, and new technology will dramatically cut production costs,” developers said, adding that the plant is expected to produce some of the most competitively priced green ammonia in the world, targeting an export sales price of roughly $650 per metric ton.
Powering a Green Horizon Producing green hydrogen and ammonia at this industrial scale requires a massive renewable energy footprint. The Coega facility will be completely unsubsidized and powered by a dedicated, large-scale renewable portfolio, including 1,499 MW of wind power and 1,430 MW of solar power. Water for the electrolysis process will be supplied via a dedicated desalination plant, ensuring local municipal water supplies remain unaffected while actually creating clean water as a byproduct.
The project is entering its final development phases. Hive Hydrogen confirmed that Front End Engineering Design (FEED) is slated to begin in the third quarter of 2026, with a Final Investment Decision (FID) targeted for the third quarter of 2027. Operations are expected to commence by the end of 2029.
Reshaping Global Shipping Green ammonia is increasingly viewed as the ultimate clean alternative to heavy, carbon-intensive marine fuels. The Coega project specifically targets the maritime business—a heavy ocean polluter—as well as heavy industrial and chemical sectors in Europe and the Far East.
The initiative is capturing global attention and is a cornerstone of South Africa’s emerging green hydrogen economy. Last year, South Africa’s Electricity and Energy Minister Dr. Kgosientsho Ramokgopa conferred official ‘lighthouse’ excellence status to the $5.8 billion project, acknowledging its critical role in the country’s broader energy transition strategy.
Beyond its environmental impact, the Coega Green Ammonia Project is poised to be an economic catalyst for the Eastern Cape. Hive Hydrogen estimates that the development will create over 20,000 direct and indirect jobs during its lifecycle, supplementing the country’s grid infrastructure and driving major port expansion in Nelson Mandela Bay.
As the global race for clean industrial fuels intensifies, South Africa is leveraging its vast wind and solar resources, strategic shipping routes, and strong infrastructure partnerships to position itself at the very forefront of the green revolution.
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