Published: · Region: Africa · Category: markets

EU Puts €57.8 Million Into South African Green Hydrogen in Early Test of Global Gateway in Africa

The EU has announced €57.8 million in Global Gateway projects to support South Africa’s green hydrogen and battery value chains, with Germany, Denmark and the Netherlands as partners. The move is meant to strengthen clean‑energy links with Africa and support Europe’s longer‑term energy transition plans.

Europe is trying to lock in new clean‑energy ties with Africa, starting with a relatively small but symbolic package in South Africa.

At the Africa Green Hydrogen Summit in Cape Town on 15–16 September, the European Union unveiled two Global Gateway projects worth a combined €57.8 million. They’re aimed at backing South Africa’s green hydrogen and battery value chains, with Germany, Denmark and the Netherlands involved as partners.

Green hydrogen, produced using renewable electricity, is central to EU plans to cut emissions from heavy industry and transport. European policymakers see African producers as potential suppliers of hydrogen and related fuels made from abundant wind and solar resources.

The €57.8 million announced in Cape Town is modest by global energy standards, but it’s pitched as part of a broader Global Gateway push to finance infrastructure and energy links with partner regions. For South Africa, which relies heavily on coal and struggles with power shortages, investment in hydrogen and batteries offers a possible route to new industries and technology.

Other African countries are watching to see whether projects like these deliver real manufacturing, jobs and technology transfer on the ground, or mainly serve European demand. The stakes for European industry are also real, as long‑term access to low‑carbon fuels will shape costs for sectors such as steel and chemicals.

Key signals now will be which specific projects receive the €57.8 million, what follow‑on financing comes from European lenders or private investors, and whether similar hydrogen and battery initiatives appear in other African states following South Africa’s lead.

Sources

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