South Africa is marking major progress in its quest to become a predominant producer and exporter of green hydrogen. The country’s state-owned logistics firm, Transnet National Ports Authority (TNPA), has singled out three consortia to present proposals for the creation of a new port and railway infrastructure, specifically designed for the exports of manganese ore and green hydrogen.
The three groups have been tasked with drafting proposals for the design, funding strategies, and construction schemes for the prospective deepwater port of Boegoebaai and its interconnected rail systems. The first phase of the project is expected to incur costs of around $785 million.
The construction of the new port and railway lines is crucial to underpin South Africa’s projected Boegoebaai hydrogen production hub. The port is intended to cater to mines situated in the Northern Cape province, particularly for the export of manganese ore, which is currently hindered by high transportation costs and insufficient capacity along existing export routes. As per TNPA, the inception of the new port and rail infrastructures will significantly amplify the Northern Cape’s connectivity, facilitating the logistics for the export of manganese, green ammonia, and other commodities from the province.
The planned Boegoebaai port, to be developed on a greenfield site, is set to handle up to 17 million tonnes of dry bulk commodities per annum, encompassing containers, break-bulk commodities, diesel fuel, and hydrogen.
Three consortia, namely Boegoebaai Port & Rail Consortium, Boegoebaai Development Consortium, and Project Elephant Consortium, have been shortlisted to present proposals for the design, funding, and construction of the port and railway infrastructures. These entities were chosen from a pool of eight groups, comprising local and international companies that responded to a qualification request issued in August the previous year. This shortlisting puts TNPA on track to commence the first phase of the Boegoebaai port by 2026.
This port’s development forms a pivotal part of South Africa’s hydrogen strategy. The country aspires to be a prominent producer and exporter of green hydrogen, aiming to secure at least four percent of the global market share by 2050. This goal entails the deployment of 10 GW of electrolysis capacity in the Northern Cape region by 2030 and an annual hydrogen production goal of about 500 kilotons by the same year.
The Boegoebaai hub is poised to be the linchpin of South Africa’s hydrogen ambitions as it is projected to house the principal infrastructure for H2 exports. This includes an electrolyzer park, a green ammonia production plant, and associated ancillary operations. This colossal project is anticipated to create 6,000 direct jobs.
Apart from hydrogen, the development of the port and linked railway infrastructures is expected to yield significant economic gains for the Northern Cape province. Currently, all export commodities from the region are transported overland for export through ports located in other provinces, resulting in supply chain bottlenecks and elevated transportation costs.
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