A basic engineering layout of Keren Energy's hydrogen production facility which it hopes will go into production in the first half of 2028.
Image: Supplied
Keren Energy has made significant progress in the development of its green hydrogen (GH2) production facility in the Western Cape, South Africa, near Vanrhynsdorp, the first project of its kind in South Africa,
The project is designed to support South Africa’s transition to a low-carbon economy by focusing on small-scale, distributed hydrogen production — tailored for local industrial, manufacturing, mobility, and commercial sectors, said Keren's executive director, George van Rensburg.
The Front-End Engineering Design (FEED) study has been completed for the project, as has the bankable financial model, along with the majority of the necessary permits for the project.
“We are now at a critical juncture in securing strategic partnerships, finalising project funding, and engaging with off-takers,” said Van Rensburg.
In the first phase of production, the facility will produce about 800 tons of green hydrogen per year. It will use on-site solar power, supplemented by grid-based renewable energy, to power advanced electrolysers that produce green hydrogen in gas form.
The hydrogen will be stored in ISO tube trailers, allowing for flexible, decentralised distribution to end users. Van Rensburg said this model ensured a cost-effective, scalable, and accessible energy solution, without the capital costs associated with ammonia or liquid organic hydrogen carriers, which are more suited to large-scale export operations.
Keren’s hydrogen project received its Strategic Infrastructure Project (SIP) status in 2023 from Infrastructure South Africa (ISA).
“By providing a reliable, domestic GH2 supply, we intend to help businesses reduce their carbon footprint — mitigating the impact of mechanisms like the EU’s Carbon Border Adjustment Mechanism (CBAM) and supporting the competitiveness of South African exporters,” he said.
Keren Energy has been operating in South Africa and Southern Africa for over a decade. It focuses on renewable energy projects in the solar PV, hydro, biomass, and green hydrogen industries. It has been successful in various rounds of the Renewable Independent Power Producer Programme (REIPPP) in South Africa, and it holds investments in a pipeline of over 1 000MW of developed or developing renewable energy projects.
However, said Van Rensburg, their focus currently is on their flagship green hydrogen project in the Western Cape.
“While this is our primary project at this stage, we are actively exploring additional opportunities in the renewable energy and hydrogen sectors locally as part of our long-term growth strategy,” he said in response to questions from Business Report.
He said they were targeting financial close of the project by the end of 2025, with production expected to come online in the first half of 2028, subject to standard project development timelines and regulatory approvals.
Hydrogen currently serves a range of industrial and manufacturing applications in South Africa, and demand is growing.
“Looking ahead, we see strong potential in emerging markets such as stationary power generation, mobility, and other sectors aligned with decarbonisation efforts,” he said.
He said they had begun engaging with potential off-takers in 2025 and were in active discussions with parties across multiple sectors.
BUSINESS REPORT