Mantashe snubs signing of European green hydrogen fund

South African energy minister Gwede Mantashe refused to attend a top-level meeting held by President Cyril Ramaphosa with European leaders for the signing of a green energy memorandum of understanding, the Johannesburg-based Sunday Times reported.

Mantashe didn’t sign the US$1 billion agreement with the Netherlands and Denmark because it was drafted without his input, the newspaper said, citing the minister and other officials. The pact was ultimately signed by others.

The adoption of cleaner energy has been beset by infighting within the South African government as much of the ruling African National Congress’s traditional support comes from labour unions, including the National Union of Mineworkers. Both Ramaphosa and Mantashe are former leaders of the mining union.

Billion dollars

State-backed firms from the Netherlands agreed to back a US$1 billion dollar of green hydrogen funds in South Africa.

Climate Fund Managers BV, a Hague-based company owned by Netherlands’s development bank FMO and South African insurer Sanlam Ltd., and Invest International BV will help run and finance the initiatives, according to statements.

South Africa estimates it will cost about R1.5 trillion (US$80 billion) over the next five years to transition away from the use of coal for power and create electric vehicle and green hydrogen industries. – Fin24/Bloomberg