Japan offers yen-denominated energy loan to South Africa and promotes ammonia co-firing technology to blend with coal

Japan plans to fast-track talks with South Africa on a yen-denominated energy loan during a visit by Foreign Minister Toshimitsu Motegi. The loan size was not specified. Japan's offer adds to about $10 billion in climate finance pledged to the continent's biggest economy by European nations.

Japan is promoting ammonia co-firing, a technology in which a portion of coal used at power plants is replaced with ammonia (a hydrogen derivative combined with nitrogen) to reduce carbon emissions. South Africa could theoretically use its abundant sun and wind to produce green hydrogen, which is then combined with nitrogen to produce ammonia for easier transport.

The loan was first discussed in a meeting between South African President Cyril Ramaphosa and former Prime Minister Shigeru Ishiba in Yokohama in August at an Africa-focused summit. South Africa generates about three-quarters of its electricity from coal and has some of the world's best solar power and green hydrogen production potential.