12 Jun Africa Hydrogen Summit 2025
IDC and KFW sign Euros 17m MOU to to support development of local Green Hydrogen economy
Capetown – The rapid global development of the Green Hydrogen (GH2) market offers a significant opportunity for South Africa to position itself as a competitor in future green energy markets. This development including concerted efforts by government to commercialise the local Green Hydrogen economy will not only create jobs but help boost South Africa’s energy security in the long-term..
Accordingly, the IDC has signed a Euros 17m Memorandum Of Understand (MOU) with German based development funder KFW to mitigate a potential funding gaps that may arise from the increasing demand for Green Hydrogen related projects. Among other objectives, the MOU seeks to formalise a framework for cooperation between the parties and enabling them to continue to strengthen cooperation with respect to sustainably ramp up a local green hydrogen economy.
The IDC is playing a leading role in the development of a Green Hydrogen Commercialisation Strategy (GHCS) for South Africa through its role in housing the just energy transition implementation plan (JET-IP) hydrogen PMO and responsibility for the financing work stream under the green hydrogen portfolio in the JET-IP.
A key enabler of the GHCS is the sourcing of different kind of financing instruments namely grants concessional debt and price subsidies also known as contract for differences from various financing entities including local and international development finance institutions (DFIs). To this effect, there has been a significant ramp-up of Green Hydrogen projects in the country over the past three years months and these have caught the attention of international cooperating partners that are keen to accelerate development of the local Green Hydrogen economy
IDC (acting) Divisional Executive for Industry planning and Project Development, Rian Coetzee explained the significance of the MOU saying the IDC and kfw will work towards 17m euros of grant funds for the development of the local green hydrogen industry. Coetzee added that these funds will expedite the development of catalytic green hydrogen projects and support the development of the new green hydrogen industry in South Africa.
Said Juergen Friedrich, who is the Ministerial envoy, International Hydrogen Projects of the German government for kfw: “ KfW supports the IDC in its mandate to promote the market development of a green hydrogen economy in South Africa. As an experienced bank and reputable development institution, we share in the aspirations, objectives as well as mandate of the IDC,” said Friedrich adding that this MOU is exemplifies our confidence on the IDC to spearhead the development and commercialisation of the local Green Hydrogen Economy.
Issued by:
Tshepo Ramodibe
IDC Head of Corporate AffairsFor more contact:
Chimwemwe Mwanza
Media Relations
Cel: 073 535 0300
Email : Chimwemwem@idc.co.za