Name of the Project
Phelan Green electro-sustainable aviation fuel project.

Location
A 6 000 ha site near Hopefield, in the Western Cape, South Africa, with planned export access through Saldanha Bay.

Project Owner/s
Phelan Green Group, through its clean-fuels subsidiary Phelan Green eFuels. The Phelan Family Trust holds the majority interest in Phelan Green Group. A 25% broad-based black economic-empowerment (BBBEE) partner has been introduced through Rand Merchant Bank.

Project Description
The project entails the development of a commercial-scale electro-sustainable aviation fuel (eSAF) facility.

The first phase is expected to produce about 35 000 t/y of eSAF from 20 000 t/y of green hydrogen. Full development is planned to increase production from 80 000 t/y of green hydrogen to about 140 000 t/y of eSAF for export to the EU and UK markets.

Phase 1 will use 200 MW of electrolysis capacity supplied by Sungrow Hydrogen.

The power supply is expected to comprise 350 MW of on-site solar PV capacity and 250 MW of grid-wheeled wind power, supported by 400 MWh of battery energy storage under a power purchase agreement (PPA) with affiliate Phelan Green Saldanha Energy.

Renewable hydrogen will be combined with biogenic CO₂ from a colocated 8 MW biomass plant. 

Johnson Matthey's HyCOgen technology will convert the hydrogen and CO₂ into carbon monoxide, which will be combined with additional hydrogen to produce synthesis gas. 

Fischer-Tropsch synthesis and eSAF upgrading technology will produce synthetic crude oil and, ultimately, eSAF that meets aviation fuel standards.

The project output has been precertified under the International Sustainability and Carbon Certification EU Renewable Fuels of Non-Biological Origin framework. TÜV SÜD has verified a 95% greenhouse-gas saving compared with fossil jet fuel.

Potential Job Creation
The project is expected to create about 3 000 temporary construction jobs and 500 permanent positions.

Capital Expenditure
R47-billion for all phases, of which about R12-billion is allocated to Phase 1.

The Phelan family has committed $100-million in equity. The International Finance Corporation is leading senior debt syndication on the basis of a 40% equity and 60% project-debt funding structure.

Planned Start/End Date
Financial close is targeted for the fourth quarter of 2026, with construction expected to start in the first quarter of 2027. Commercial operation is targeted for the fourth quarter of 2028, followed by first production and exports in the first quarter of 2029.

Latest Developments
In September 2026, the project was named as one of the first six priority projects to emerge from government's national green hydrogen programme and was included in the National Green Hydrogen Deal Book.

The project has completed front-end engineering design and is expected to reach a final investment decision within six months. An offtake arrangement covers 60% of planned output for ten years for the EU market.

The National Green Hydrogen Deal Book states that the core technology packages for electrolysis, synthesis and upgrading are contracted and engineered. 

Environmental authorisation is expected in the fourth quarter of 2026, while discussions on access to portside terminal, pipeline and servitude infrastructure at Saldanha Bay are advanced.

Key Contracts, Suppliers and Consultants
Sungrow Hydrogen (electrolysis capacity); Honeywell UOP and Johnson Matthey Catalyst Technologies (Fischer-Tropsch synthesis, HyCOgen and eSAF upgrading technologies); Megchem and Proconics (South African integration and outside-battery-limits works); WSP and Eco-Compliance (site permitting); Phelan Green Saldanha Energy (PPA); Rand Merchant Bank (introduction of the project's BBBEE partner); and International Finance Corporation (senior debt syndication).

Cape Oceans Terminals and the Strategic Fuel Fund are involved in discussions on portside terminal, pipeline and servitude access.

Contact Details for Project Information
Phelan Green Group, tel +27 21 433 0366.