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HomeInvestment ProjectsPrieska Power Reserve Project to produce green hydrogen and ammonia

Prieska Power Reserve Project to produce green hydrogen and ammonia

The Prieska Power Reserve Project is a catalytic project that will start producing green hydrogen and ammonia in 2025. The project is well positioned to be a key player in the global green hydrogen and ammonia market.

Prieska Power Reserve logoThe Prieska Power Reserve Project is situated in the Pixley Ka Seme District Municipality, in the Northern Cape Province of South Africa.

The project was initiated by Central Energy Corporation (Pty) Ltd (“CENEC”) during 2018, and developed in partnership with Mahlako A Phahla Investments (Pty) Ltd (“Mahlako”) and the Industrial Development Corporation (“IDC”).

The project is far advanced under Feasibility Study with the main focus areas being:

    • Legal & Spatial (land and environmental rights and permits);
    • Statutory (SPV, Structure & Governance);
    • Technical Feasibility (Detailed Technical Design & Capital Expenditure Costing);
    • Bankable Financial Model and structuring & arranging of debt and equity funding;
    • Marketing (off-take agreements)

The Prieska Power Reserve Project was recently gazetted under Infrastructure South Africa as a Strategic Integrated Project (SIP).

Targeted sectors

The project focuses on the following sectors:

    • Renewable Energy
    • Hydrogen Fuel
    • Ammonia Fertilizer

Investment value

    • The total value of the project is R10.7-billion

Employment

    • Permanent employees 300 post construction.
    • Supported by 25 Young Professionals and 75 Artisans.

Project description

The first phase of the project involves producing more than 77 000 tonnes of green ammonia per year, with a green hydrogen content of approximately 13 800 tonnes per year from 2026.

The project makes use of renewable energy sources including 180MWp solar, fixed-tilt and single-axis tracking, 130MWp of wind and 110MWh of battery storage.

Construction of the ammonia production facility will begin in 2023 and will include a 140MW electrolyser and 300 mtpd Ammonia Synthesis, which will be operational in 2026.

The project intends to incorporate next-generation technology that is more affordable and more efficient, hence unlocking additional economies of scale that will make the selling price competitive when compared to grey ammonia/hydrogen.

Competitive advantage

The project is well positioned to be a key player in the global green hydrogen and ammonia market.

  • The project has ample land with an abundance of complementary solar and wind resources that are ideal for the low-cost production of ammonia;
  • Prieska offers excellent linkages to the road, rail and port infrastructure;
  • Various governments in easy to access potential project markets are implementing policies to promote an enabling environment for the uptake of green hydrogen and ammonia;
  • Prieska with an abundance of solar and wind resources, can benefit from this expected growth in the green hydrogen and ammonia;
  • The project will contribute substantially to South Africa’s Hydrogen Strategy by capitalizing on abundant renewable resources in South Africa to deliver technologies for hydrogen production linked to renewable energy, storage and distribution.

Contact

Potential equity investors or other business partners interested in the project are invited to send a brief introduction to the project team:


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