Hive Hydrogen South Africa has awarded a $9-million front-end engineering design (FEED) contract for its $5.8-billion green hydrogen and ammonia project in Gqeberha.

Spanish engineering company, Técnicas Reunidas will undertake the FEED, which is scheduled to begin in Nelson Mandela Bay in October 2026, Creamer Media reported on September 15.

The project is designed to produce up to 1-million tonnes of green ammonia a year for domestic and international markets, using renewable electricity generated by dedicated wind and solar photovoltaic plants with a combined capacity of 2,930 MW.

Hive Hydrogen chairperson Thulani Gcabashe said the company selected Técnicas Reunidas after evaluating competing proposals as it seeks to develop a cost-competitive green ammonia operation.

“The Técnicas Reunidas proposal was outstanding in all respects. Our aim remains to produce the lowest cost green ammonia globally,” Gcabashe said.

The project is being developed at Coega in the Eastern Cape and is positioned by its developers as a major green hydrogen initiative for South Africa and a flagship project under the European Union's Global Gateway programme in the country.

The FEED will cover the molecule-production portion of the project, including integration of green hydrogen production, nitrogen production, ammonia synthesis, process utilities, storage, export facilities and associated infrastructure.

The renewable-energy generation facilities and related upstream electrical infrastructure will be developed under a separate workstream and are not included in the FEED contract.

Técnicas Reunidas commercial director for commercial track and services, Gonzalo Pardo, said the company would work towards completing the engineering phase and supporting the development of the Coega site.

The project could create more than 20,000 employment opportunities, while its location provides access to the deep-water Port of Ngqura for potential exports.

Hive plans to issue a separate request for proposals to shortlisted engineering, procurement and construction (EPC) companies for the broader project.

The ammonia production plant's EPC scope is estimated at $1.8-billion. Hive's strategy is for the FEED contractor to potentially continue into the EPC phase, subject to successful FEED completion, project approvals, financing and a final investment decision.

The company said the FEED-to-EPC approach is intended to preserve engineering continuity, reduce transition risks and improve certainty around construction schedules and costs.

The FEED process will establish the technical, financial, scheduling and execution basis needed for the project to proceed towards a final investment decision and full implementation.