A $5.8-billion green ammonia project is under development at South Africa’s Coega port, aiming to leverage the country’s renewable energy and existing infrastructure to supply competitively priced ammonia to international markets. The project is a joint venture between UK-based Hive Energy and local partner BuiltAfrica and is set to begin exports by late 2029, targeting one-million metric tonnes annually.

Green ammonia, derived from renewable energy, is increasingly in demand in Europe and Asia for use in fertilisers, the chemical industry, and as a carrier for green hydrogen—a key alternative to fossil fuels but difficult to transport in its pure form. Hive Energy’s Africa CEO, Colin Loubser, stated the project could produce green ammonia at $650 per tonne, well below the current global benchmark of $760/t free-on-board, while delivering double-digit returns to investors.

The Coega site benefits from strategic location advantages, existing port infrastructure, and access to low-cost wind and solar energy. A desalination plant operated by Cerebos will further reduce capital costs. With backing from South Africa’s Department of Trade, Industry and Competition, the country is positioning itself to reach green hydrogen production costs as low as $1/kg by 2050.

While global competition from subsidised programmes in countries like Australia and India poses a threat, Loubser believes South Africa can remain cost-competitive. Long-term plans could see production expanded to four-million tonnes annually, further strengthening the country’s role as a key exporter in the global green hydrogen and ammonia markets.