Prieska Power Reserve Secures KfW & IDC Funding for Green Hydrogen

The Prieska Power Reserve (PPR), a pioneering green hydrogen and ammonia project in South Africa’s Northern Cape, has achieved a major milestone with funding approval from KfW Development Bank in partnership with the Industrial Development Corporation (IDC).

The project is co-owned by Mahlako, a women-owned infrastructure investment firm, and CENEC (Central Energy Corporation), a zero-emissions energy specialist.

A Landmark Achievement for Green Hydrogen

“Prieska is the first green ammonia and hydrogen project to receive funding approval from the KfW grant. This marks a significant milestone for the project,” said Meta Mhlarhi CA(SA), Director of Prieska Power Reserve.

“The backing from KfW signals strong international confidence in South Africa’s green hydrogen ambitions and reinforces PPR’s role as a catalytic project in the country’s energy transition.”

In 2023, the IDC and KfW entered a funding agreement to support South Africa’s green hydrogen sector, leveraging the country’s world-class solar, wind, and mineral resources.

Project Scope & Economic Impact

• Located on 1,900 hectares in the Northern Cape, PPR is strategically positioned for wind and solar energy generation.

• Expected to produce 80,000 tonnes of green ammonia annually by 2027, scaling to 500,000 tonnes by 2030.

• The facility will be situated in Siyathemba Local Municipality’s industrial zone, integrating with local infrastructure.

“We’re making excellent progress across the project’s technical and financial workstreams,” said Martin Walzer, Director of Prieska Power Reserve. “With KfW’s support and our ongoing partnership with the IDC, we are well positioned to reach financial close and move into project execution.”

The funding agreement was officially signed at the Africa Green Hydrogen Summit (AGHS) in Cape Town, witnessed by President Cyril Ramaphosa.

Driving Inclusive Growth & Just Transition

“The Prieska Power Reserve is more than just an energy project,” said Makole Mupita CA(SA), Director of Prieska Power Reserve.

 “It represents a collaborative platform that brings together business, government, and communities to deliver inclusive growth and a just energy transition.”

The project prioritizes:

This initiative reinforces South Africa’s leadership in renewable energy and supports global decarbonization efforts.