PNE and SELECT intend to jointly produce and market e-fuels from hydrogen in South Africa
Memorandum of understanding to jointly develop synthetic fuels from renewable energy sources in South Africa, with projected annual production reaching 500,000 tons of e-fuels.
Cuxhaven / Hamburg, July 26, 2023 — The PNE Group and S.E.T. Select Energy GmbH (SET) want to jointly produce synthetic fuels from renewable energies (e-fuels) in South Africa and market it. The two companies signed a corresponding memorandum of understanding today in Hamburg.
The project on the west coast of South Africa is expected to generate up to 500,000 tons of e-fuels per year from green hydrogen produced via electrolysis. The electrolyser with a nominal capacity of 1 GW is powered by energy from wind farms and photovoltaic plants.
“We are looking forward to working with SET on this groundbreaking project. It shows once again that climate protection must be considered and managed globally. In addition, it is the second power-to-X project for us in South Africa and a further milestone in the implementation of our corporate strategy.”
As a clean energy solutions provider, PNE stands for holistic solutions for clean energy. This is proven by combining wind and solar energy in conjunction with the production and further processing of green hydrogen.
“Green energy supply is becoming increasingly global: the planned project in South Africa shows how the energy transition works and is interlinked across national borders and continents. South Africa as a location for renewable energies and export logistics represents an advantage that makes e-fuels available to both local and international customers. We are pleased to accompany PNE as a trading and logistics partner in this exciting project. As an energy trading company, we are predestined to also bring new energy sources economically and flexibly from the producer to the consumer.”
Due to the lack of large grid capacity in the vicinity of the project, the decision was made to produce e-fuels from wind and solar energy instead of power supply to the national grid.
The water required for electrolysis comes from the sea and passes through a desalination and demineralisation plant before being used.
The strategic partnership between the project developer and the trading company is intended to ensure the economically viable marketing of the green e-fuels to potential customers, i.e. to ensure that the e-fuels meet market demands. The involvement of a retailer like SET at this early stage supports the feasibility of the project and ensures sustainability. SET and the South African PNE subsidiary WKN Windcurrent are currently evaluating the logistic options and the availability of raw materials and products in the pre-feasibility phase.
