Phelan Green Secures FID on South Africa's First eSAF Project
The Phelan Green eSAF project in South Africa has reached its final investment decision (FID), marking a significant milestone for the country's green hydrogen development wave. This is the first of six projects to reach FID, and it signals a shift from development toward construction and commercial execution.
The project will produce about 35,000 tons per year (tpy) of synthetic aviation fuel (eSAF), with a broader Phelan Green Hydrogen Project investment value of approximately R47 billion ($2.9 billion). Construction is expected to begin in the first quarter of 2027, and first exports are targeted for the first quarter of 2029.
The project has secured an offtake agreement and committed $100 million in equity. Phelan has assembled a technology chain involving Johnson Matthey and Honeywell, which will convert captured CO2 and electrolytic hydrogen into syngas, producing synthetic crude and then upgrading it to aviation fuel.