CAPE TOWN - South Africa's Coega green ammonia project has selected Danish ​company Topsoe ⁠to supply electrolyser cell technology and other ‌equipment in a deal valued around $1 billion, the project developers ​said late on Monday.

The $5.8 billion plant on South Africa's ​east coast aims to ​supply 1 million metric tons of green ammonia by 2030

The project at ⁠the port of Coega, jointly developed by Britain's Hive Energy and South African partner BuiltAfrica, is competing with other African countries such as Morocco and Namibia ​to ‌meet rising demand ⁠for hydrogen ⁠and ammonia in Europe and Asia

The ammonia, used in ​making fertiliser and in the ‌chemical industry, is considered green ⁠because it is produced using renewable energy such as solar and wind power

Giles Redpath, chief executive officer of Hive Energy said in the statement that Topsoe's green ammonia technology would allow the company to cut renewable energy capital expenditure by more than 0.5 billion euros ($582.20 million)

The ‌Coega Green Ammonia Project is in its ⁠final stage of development and is ​on track to commence Front End Engineering Design in the third quarter 2026 and conclude Final Investment Decisions ​by ‌the third quarter of 2027

($1 = 0.8588 ⁠euros)