Name of the Project
Prieska Power Reserve project.

Location
Prieska, in the Siyathemba local municipality, Northern Cape, South Africa.

Project Owner/s
Prieska Power Reserve is a 50:50 joint venture between African women-owned, Level 1 broad-based black economic-empowerment investment group Mahlako a Phahla Investments and Central Energy Corporation. The Industrial Development Corporation (IDC) holds a contractual right to equity and supports the project-preparation phase.

Project Description
The project entails the development of an integrated, island-mode green hydrogen and chemicals complex. It has been designated as Strategic Integrated Project 20e and forms part of the Northern Cape's green hydrogen strategy.

Phase 1 is expected to include between 120 MWp and 140 MWp of solar PV capacity, 148.8 MW of wind capacity, a 90 MW/230 MWh battery energy storage system and a 300 MVA synchronous condenser. This infrastructure will supply a 120 MW electrolyser.

The plant is expected to produce 300 t/d of green ammonia, 542 t/d of nitric acid and 719 t/d of ammonium nitrate solution. Intermediate chemical storage will buffer the variable renewable-energy supply.

The project will initially target the South African mining-explosives and fertiliser markets, with its planned 20-year domestic offtake arrangement covering 100% of output. It will retain the option to export through rail links to Gqeberha, in the Eastern Cape, and Saldanha, in the Western Cape.

Potential Job Creation
Construction employment is expected to peak at about 3 000 jobs, with 390 permanent operational positions planned. A skills pipeline is being developed with the Energy and Water Sector Education and Training Authority, and German development agency GIZ, with a focus on women and youth.

Capital Expenditure
Phase 1 capital expenditure is estimated at about R13-billion. The National Green Hydrogen Deal Book also states a project capital cost of €600-million.

Planned Start/End Date
A final investment decision is targeted for the first quarter of 2028.

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

The project is at front-end engineering design stage. Environmental authorisations are in place for the chemical plant, the Townlands and Wonderpan solar facilities, and the wind energy facility. Spatial Planning and Land Use Management Act rezoning was granted in October 2024, all Phase 1 land is under lease and a quantitative risk assessment has been completed.

German bank KfW approved the financial model in 2025, owner's engineer procurement has been concluded and licensor selection for the integrated ammonia, nitric acid and ammonium nitrate package is under review. The project is seeking a strategic equity partner and project-finance debt, in addition to engineering, procurement and construction, as well as licensor, partners.

Key Contracts, Suppliers and Consultants
IDC (project-preparation support and potential equity); KfW and GIZ (financial and technical assistance); and Energy and Water Sector Education and Training Authority, and GIZ (skills development). The owner's engineer procurement process has been concluded, but the appointed party has not been named. Licensor selection is under review.

Contact Details for Project Information
Prieska Power Reserve, Sophie Masipa, email media@mahlako.co.za.