South Africa: Phelan invests $100 million in green aviation fuel

The project is one of six developments selected in the first wave of South Africa’s green hydrogen program. Phelan has also secured a purchase agreement for its future production, according to the South African presidency.

The announced timeline anticipates construction to begin in the first quarter of 2027. The first exports of e-SAF, an aviation fuel produced from renewable electricity and low-carbon hydrogen, are targeted for the first quarter of 2029.

The other five priority projects include green ammonia, hydrogen-reduced iron, green methanol, and domestic uses of hydrogen. They are at varying stages of readiness and have not all yet reached a final investment decision.

The government has compiled these projects in its first Green Hydrogen Deal Book to provide investors with a structured overview of the projects deemed most advanced. The initiative is also intended to coordinate technical preparation, funding searches, and common infrastructure needs.

Phelan’s project is the most advanced of the six. The presidency indicated on September 15 that the equity has been committed, a buyer has been secured, and major equipment has already been ordered.