Climate Fund Managers has secured approximately ZAR3 billion (US$182–183 million) at the first close of the SA-H2 Fund, creating a blended-finance platform focused on South Africa’s green hydrogen economy.
Backers include the European Commission, Invest International, South Africa’s Public Investment Corporation, Sanlam Life and the Industrial Development Corporation, bringing public and institutional capital into the same investment vehicle.
SA-H2 Targets Hard-to-Abate Industries
The fund, also known as Climate Investor Three South Africa, is designed to invest across the green hydrogen value chain.
Its target sectors include industries where direct electrification remains difficult, including:
- Steel
- Fertiliser
- Green ammonia
- Green methanol
- E-fuels
- Heavy industrial production
Gasworld reports that the fund is intended to support and de-risk early-stage projects and accelerate their progression toward final investment decisions.
South Africa’s strong renewable-energy resources, industrial infrastructure and access to platinum-group metals make the country a potentially important hydrogen production market.
Blended Finance Reduces Early Project Risk
SA-H2 combines different layers of public and private capital.
Its Development Tranche provides early-stage risk finance and technical assistance, helping projects prepare for FID.
Separate blended Equity Tranches can then support projects as they move through financial close and into construction.
This model is designed to make projects more attractive to institutional investors that would otherwise avoid early-stage development risk.
“This first close reflects confidence in Climate Fund Managers’ blended finance model and our track record of developing and scaling infrastructure projects…” said Andrew Johnstone, CEO, Climate Fund Managers
Initial Project Pipeline Already Emerging
SA-H2 has already signed development funding agreements with two strategically significant projects.
One is Green Efuels Producers, which plans a wastewater-to-green-methanol facility in Gauteng.
The second is the Hive Hydrogen Coega Green Ammonia Project, positioned as South Africa’s first large-scale green ammonia production development.
The first close therefore gives the fund capital that can be deployed into an existing project pipeline rather than starting without identifiable investment opportunities.
Fund Targets ZAR12bn Final Close
Climate Fund Managers ultimately aims to increase SA-H2 to ZAR12 billion by mid-2028.
Its first close demonstrates that development institutions and long-term investors remain prepared to finance hydrogen where investment structures address early technical and commercial risk.
That distinction is becoming increasingly important as numerous global hydrogen announcements struggle to reach construction.
Rather than financing one individual electrolyser or production plant, SA-H2 is building an investment platform capable of supporting multiple projects across hydrogen, ammonia, methanol and industrial decarbonisation.
Its success could therefore influence whether Southern Africa’s hydrogen pipeline develops into investable infrastructure at meaningful scale.
Professionals at Climate Fund Managers: Sebastiaan Surie Juan F Paez Willem Frens Mim Makapat P. Danélle Fourie Jeb Victorino Tarun Brahma Ivan Nunez Michael Canning Fleur Parkinson Jon Campbell-Copp Mark Florance Vuong X. Hung Kelvin Sean Lim Stefan Wandrag Kristian Gerstner Alison Wood Mphokolo Makara Jim Brands Alex Everett Tuliikeni Ndadi Douglas Leung Juliana Franco Orjuela Claire Cummins Srinarin Poudpongpaiboon
