As part of ongoing net-zero commitments, low-carbon, or ‘green’ hydrogen will become a key tool in the decarbonisation of some of the most challenging industrial and transport sectors, as well as providing a flexible tool for electrical power production.
Hydrogen is produced on a commercial basis today – it is used as a feedstock in the chemical industry and in refineries, as part of a mix of gases in steel production and in power generation. Global production stands at around the equivalent of 3% of global final energy demand, similar to the energy consumption of Germany. However, around 99.6% of current hydrogen output is produced using fossil fuels.
The future of hydrogen
Global demand for green hydrogen is expected to accelerate through a combination of the replacement of existing hydrogen production and new applications in heavy industry, long-haul transport, maritime fuels, and seasonal energy storage, substituting fossil fuels.
Green hydrogen will be used directly as a fuel and to manufacture green ammonia, which can be used as a fuel in industrial and heavy transport sectors and is used extensively in chemical processes, and particularly the production of fertilisers. A substantial portion of existing coal-fired power plants in key countries are expected to switch from coal to ammonia by 2050 and shipping is also expected to convert to ammonia in replacement of heavy oil. Green hydrogen is being supported by governments and corporations across the world. By the end of the decade, overall hydrogen production is expected to increase by around 30%, with an increasing proportion supplied through low-carbon means.
Hive’s mission to bring green hydrogen to international markets
Hive Hydrogen, a subsidiary of Hive Energy, is a green hydrogen and green hydrogen-based derivatives development platform. Hive Hydrogen has a diversified global portfolio of projects supported by ~16GW of dedicated solar and wind pipelines across Europe, Africa, and LATAM to supply cost-competitive green hydrogen and ammonia to local and international markets.
Its most advanced projects are in South Africa and Spain, targeting the 1st COD between 2027/2028, with another project in Chile targeting COD in 2030. Over 340,000 ha of land have been secured across these three projects for the installation of ~16GW of renewable generation assets and ~8GW hydrogen/ammonia production assets.
Development capital is being raised to support the development of Hive’s 8 GW of green hydrogen/ammonia hubs
Hive Energy is looking to raise development capital by means of a primary equity raise to support the on-going development costs for Hive’s global green hydrogen and green ammonia portfolio and supporting the advancement of its three core projects to FID. Hive Hydrogen’s business model provides investors with attractive development returns across a pipeline of advanced and earlier-stage projects. Hive is seeking one or more partners to provide an investment into our green hydrogen/ammonia portfolio, taking a stake in the platform of up to 50%. Hive Energy brings a ‘Developer DNA’ to the projects, having developed more than 2.7GW of solar PV/BESS with a further 8.5GW of green energy projects in the pipeline.
The green hydrogen/ammonia project details
Coega green ammonia
Coega is Hive’s flagship green hydrogen and ammonia project being developed in South Africa’s Nelson Mandela Bay. We are working on the project in collaboration with Built Africa and a memorandum of co-operation has been signed with Itochu.
Initially, we are targeting a renewable capacity of around 3.6GW at this location with additional sites planned for three further phases equal in size for the project. The clean energy sources are solar PV and wind generation. Once operational, which is planned for 2028/2029, this site is expected to export 1,000,000 tons of green ammonia per year for use in bunkering fuel, fertiliser manufacturing, ammonium nitrate production and Hydrogen (cracked from Ammonia). The location of the site in Nelson Mandela Bay will take advantage of the existing fit for purpose liquid bulk shipping facilities.
This is our most advanced hydrogen project, and the team has already successfully secured land for the production facility, solar farms, wind farms, and additional green energy generation assets. The Hive Hydrogen South Africa team has also secured access to water for the site and is in the process of permitting.
Albamed green hydrogen hub
Albamed, the first hydrogen hub in Albacete, the southeast of Spain, will consist of up to 9GW of solar and wind energy and 4GW of electrolysis capacity by 2030. The total investment is estimated to be over €10 billion to produce over 300,000 tonnes of green hydrogen in 2030.
Hive’s Albamed project will be one of the largest green hydrogen hubs in Europe once the hub is fully operational. The project location offers good access to major highways and freight rail, and connection to the planned H2 pipeline in Spain and the European backbone. Hive Hydrogen has already secured more than 20,000 hectares of land for this project and long-term water supply.
The Hub will be delivered over four phases. The first phase is expected to achieve the final investment decision (FID) in early 2025 and COD at the end of 2027 – including up to 800MW electrolysis combined with 1.3GW Solar PV, onshore wind, and energy storage system. Hive started the permitting of the first phase in January 2023 and at the same time presented the project to the Regional Government of Castilla La Mancha to be declared as a Priority Project.
Gente Grande green ammonia:
Hive holds a 70% stake in the Gente Grande green ammonia hub in Chile, in partnership with Transitional Energy Group (“TEG”). The project controls the marine access, the industrial development site and the 38,000 Ha plot required to home all the facilities for ~3.5GW wind generation and 1.4 mtpa Green Ammonia export production.
After a 21-month campaign, and with strong support from local communities, regional politicians and central government, the project is close to submitting a complete permit application, which is expected to be issued during H1 2025. Meanwhile, the techno-economic development supported by Petrofac, KBR and Envision has confirmed the project’s best in class status for wind generation and LCOA values ensuring strong international interest in long term green ammonia offtake.
Phased project construction could start in 2026 and is expected to last 3-5 years depending on size.
