Green hydrogen-focused private equity fund reports R3bn first close
Blended finance private equity fund SA-H2, which focuses on the green hydrogen value chain and the Southern African energy transition, has achieved its first close with R3-billion in commitments from public and private institutions.
The milestone was announced by Climate Fund Managers, a climate-focused blended finance investment manager operating in emerging markets across Africa, Asia and Latin America.
SA-H2 combines public and private capital, and commitments for the first close were secured from the European Commission under the Global Gateway, Invest International, South Africa’s Public Investment Corporation, on behalf of the Government Employees Pension Fund, Sanlam Life, and the Industrial Development Corporation. The fund is also being supported by the Development Bank of Southern Africa.
Climate Fund Managers said the first close reflected growing investor confidence in green hydrogen and its derivatives as a solution for decarbonising hard-to-abate sectors, including steel, fertiliser, e-fuels and chemicals.
To date, SA-H2 has signed development funding agreements with Green Efuels Producers, a wastewater-to-green-methanol plant in Gauteng, and the Hive Hydrogen Coega Green Ammonia Project, a large-scale green ammonia production plant being advanced in the Eastern Cape.
“This first close of R3-billion, enables SA-H2 to demonstrate traction and progress in the green hydrogen sector, supported by market activity, to achieve final close at the targeted total fund size of R12-billion by mid-2028,” Climate Fund Managers said.