Climate Investor Three has signed a $4 million funding agreement with Green eFuels Producers (GeFP) to support the development of a first-of-its-kind green methanol production facility in the Gauteng province of South Africa.
The facility will be situated at the Sebokeng Wastewater Treatment Works and will process approximately 90,000 tonnes of municipal sewage sludge per year.
Renewable energy, including 50MW of co-located solar power and additional wind power, procured through South Africa’s wheeling framework, will be used to power a 10MW electrolyser to produce green hydrogen.
This will enable the production of approximately 14,300 tonnes of green methanol annually.
By converting sewage sludge, a by-product of wastewater treatment, into green methanol, a valuable fuel is created that can be used as an industrial chemical, essential in producing plastics and other materials.
The circular waste-to-fuel solution is expected to avoid approximately 118,950 tonnes of CO₂ equivalent emissions per year, based on preliminary modelling.
Furthermore, the project will return approximately 50,000-60,000 cubic metres of industrial-grade water annually to the local water utility boosting water resilience, while also supporting a Community Development Programme focused on skills development in the region.
Chris Heinermann, Co-Founder of Green eFuels Producers, believes this project will serve as a major milestone “decarbonising hard-to-abate industries while addressing local wastewater challenges, creating jobs, strengthening local value chains and generating long-term value for the Vaal region.”
Have you read?
CEOs back clean hydrogen for industrial competitiveness
How steam injection in gas turbines could help green aviation
Climate Investor Three/SA-H2 Fund is a $750 million (R12.7 billion) blended finance facility focused on energy transition and the green hydrogen value chain in Southern Africa. The fund is managed by Climate Fund Managers in partnership with Invest International.
Mphokolo Makara, Chief Executive Officer of SA-H2 Fund Managers, reiterated Heinermann’s sentiments commenting on the impact of circular economy projects on hard-to-abate sectors.
Said Makara: “This project demonstrates the effects of energy transition for industrial operations in the real economy – turning everyday waste into a valuable low-carbon fuel.”
He added that projects such as these will also address the country’s challenge of waste management, while also strengthening the industrial base.
This marks Climate Investor Three/SA-H2’s second development funding investment in South Africa, following its investment in Hive Hydrogen’s Coega green ammonia plant in the Eastern Cape in 2025.
Ultimately, Climate Investor Three believes this project will support plans to develop a Green Methanol Corridor that enables scalable green fuel infrastructure across South Africa.
