Climate Fund Managers reaches first close for SA-H2 Fund
SA-H2 invests in large-scale energy transition projects.
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Climate Fund Managers has announced the first close of its SA-H2 Fund, also known as Climate Investor Three (CI3) South Africa, with R3 billion (about 182 million) in commitments.
SA-H2 invests in large-scale energy transition projects across the green hydrogen value chain, including green hydrogen production, downstream derivatives such as green ammonia and green methanol, and the decarbonisation of hard-to-abate industries.
A blended finance facility, SA-H2 combines public and private capital in a single platform. Public capital is deployed strategically to balance risk, enabling institutional capital to participate. It comprises a Development Tranche, providing early-stage risk capital and technical assistance to prepare projects for final investment decision, and blended Equity Tranches to progress from financial close to project construction.
SA-H2's Development Tranche secured commitments from fund anchors Invest International and the European Commission – via its Global Gateway strategy – as well as the Industrial Development Corporation of South Africa. Its Equity Tranches drew commitments from South Africa's state-owned asset manager, the Public Investment Corporation; South African financial services company Sanlam Life; Invest International; and the European Commission. The fund is also supported by the Development Bank of Southern Africa.
To date, SA-H2 has signed development funding agreements with Green Efuels Producers, a first-of-its-kind wastewater-to-green-methanol plant in South Africa’s Gauteng Province, and the Hive Hydrogen Coega Green Ammonia Project, South Africa’s first large-scale green ammonia production plant
Andrew Johnstone, CEO of Climate Fund Managers, said: “As the energy transition progresses, industrial decarbonisation requires solutions beyond electrification, and green hydrogen has a critical role to play. With Climate Investor Three, we are developing and scaling projects that enable industrial users to transition to low-carbon alternatives. This first close reflects confidence in Climate Fund Managers’ blended finance model and our track record of developing and scaling infrastructure projects in emerging markets into institutional-grade assets.”
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