16 INVESTMENT
16 INVESTMENT OPPORTUNITY BOEGOEBAAI SPECIAL ECONOMIC ZONE The GH2 hub of Western SADC PROJECT BACKGROUND Green hydrogen has many downstream uses that could contribute to the creation of new industries in the Northern Cape and enable the industrialisation of industries nationally. There is also a potentially lucrative global export market where demand is growing rapidly. The province boasts several competitive advantages for the production of green hydrogen. • High renewable energy potential and established RE industry • Less complex topography • 300km of shoreline • Large mineral deposits • International accessibility PROJECT LOCATION Boegoebaai is approximately 60km north of Port Nolloth and 20km south of the border between Namibia and South Africa in the Richtersveld Local Municipality area. PROJECT DESCRIPTION The Boegoeberg Special Economic Zone is envisaged as a hub for the production and export of green hydrogen. The project is of strategic importance and will enable the overarching attainment of a Just Energy Transition. PROJECT PROGRESS • Sasol has completed the prefeasibility phase of the green hydrogen and renewable energy facility. • Evaluation of port and rail quotation process is complete and Transnet management is assessing approval for port location and successful bidders. • The draft master plan has been developed and initial engagements with various stakeholders (public and private) has commenced. • Agreement for land access has been signed between Northern Cape Economic Development Agency (NCEDA) and the Community Property Association (CPA) as well as NCEDA and Sasol. • Completed prefeasibility designs for the SEZ infrastructure. • Sanral has approved plans to upgrade R382 road. • A fuel-bunkering concept study has been completed and will be published. • Masts are to be erected for wind, bat and bird studies. • Strategic Environmental Assessment (SEA) for port and SEZ to be issued to market.
17 INVESTMENT OPPORTUNITY BOEGOEBAAI DEEPWATER PORT The project to create a deepwater port at Boegoebaai is aligned to the Boegoeberg Special Economic Zone and is being conducted under strict project management guidelines. The deepwater port project is the biggest greenfield project in the Northern Cape in 26 years and promises great economic and social benefits. PROJECT LOCATION Boegoebaai is 20km from the South Africa / Namibia border in the Richtersveld Local Municipality. PROJECT ADVANTAGES • Proximity to mining and agricultural sector activities • Short distance from coast to deep water VALUE PROPOSITION The port will be in a position to export many of the resources and products of the Northern Cape that previously had to be transported over great distances by rail or road. High-value minerals and beneficiated products from the mining industry will be exported, as will high-quality crops and agricultural products. Products from the Industrial Corridor running west into and beyond the Northern Cape can potentially all be exported. In addition, new products such as green ammonia, produced with the Boegoeberg Special Economic Zone, will be exported close to source. TARGETED SECTORS • Export • Maritime • Logistics ECONOMIC IMPACT An investment into the project of R16.8-billion is estimated to have the following effects: • Economic internal rate of return of 44% • Net present value of R44-billion • Economic cost benefit ratio of 2.46 JOBS During construction 2 971 jobs will be created. There will be 400 jobs in the operational phase and a further 13 819 indirect and induced jobs will be created.
