- The first phase of the Saldanha Bay facility will receive a US$100 million equity commitment from Phelan Green Group.
- Phase one is expected to produce 35,000 tonnes of e SAF a year, with construction scheduled to begin in the first quarter of 2027.
- The project is the first of six priority green hydrogen initiatives supported by South Africa to reach a final investment decision.
Phelan Green Group has taken a final investment decision on the first phase of its planned electro sustainable aviation fuel (SAF) facility at Saldanha Bay in South Africa.
South African President Cyril Ramaphosa announced the decision at the African Green Hydrogen Summit 2026. The development marks the transition of the project from planning to implementation and makes it the first of six priority green hydrogen projects supported by the national programme to reach this stage.
The first phase will be supported by a US$100 million equity commitment from Phelan Green Group. The full development, which will be delivered in several phases, is expected to cost R47 billion, equivalent to about US$2.9 billion.
The first phase is designed to produce 35,000 tonnes of e SAF annually. Later phases are expected to increase total production capacity to 140,000 tonnes a year.
Construction at the Saldanha Bay site is scheduled to begin in the first quarter of 2027. The project is targeting its first commercial exports in the first quarter of 2029.
The facility will use Honeywell UOP’s Unicracking process together with Johnson Matthey’s HyCOgen and FT CANS technologies. The integrated system will combine green hydrogen with captured carbon dioxide to produce aviation fuel that meets applicable industry standards.
The project’s location near Saldanha Port is expected to support exports to international aviation markets, particularly in Europe and the United Kingdom. Regulatory requirements for lower carbon aviation fuels are expected to increase demand for e SAF ahead of 2030.
Phelan Green Group has also secured a long term off-taker agreement for the project. This provides an important commercial foundation by giving the facility a committed market for its production.
The remaining five projects in South Africa’s first wave of priority green hydrogen developments will continue to receive government support as they work towards their own final investment decisions. The projects cover green ammonia, green methanol corridors and green steel.
Author: Bryan Groenendaal
