Climate Fund Managers (CFM) is backing a South African wastewater-to-methanol project, expected to produce 14,300 tonnes of green methanol annually by 2029.
A $4m investment, made through CFM’s Climate Investor Three (CI3) platform and its SA-H2 Fund, will support engineering design, environmental and social impact assessments, and permitting measures ahead of a final investment decision (FID) targeted for 2027.
Developed by Green eFuels Producers as part of its planned Green Methanol Corridor strategy, the Gauteng-based site could process around 90,000 tonnes of sewage sludge annually sourced from local wastewater treatment works.
Renewable power, including 50MW of nearby solar energy, would supply a 10MW electrolyser to produce green hydrogen for methanol production.
The funding package also grants the project access to potential follow-on equity funding of up to $26m, subject to development milestones and financing approvals.
The SA-H2 fund forms part of CFM’s broader CI3 blended-finance platform, backed by institutions including the European Commission and South Africa’s Public Investment Corporation, which aims to accelerate the country’s green hydrogen build-out through early-stage project funding.
Chris Heinermann, Co-Founder of Green eFuels Producers, said the investment validates the project’s circular approach to producing low-carbon fuel while tackling local wastewater challenges.
Primarily used as a low-carbon fuel and industrial feedstock, green methanol is being viewed as a potential clean fuel in the maritime sector and as a hydrogen carrier for storage and transport.
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