Climate Investor Three, through its affiliate SA-H2 Fund, has committed up to $4 million to support development of a green methanol project in South Africa that plans to convert municipal sewage sludge into low-carbon fuel.
The funding agreement was signed with Green eFuels Producers for a facility planned in the Vaal Special Economic Zone in Gauteng Province.
The project is expected to process around 90,000 tonnes of sewage sludge annually sourced from the Sebokeng Wastewater Treatment Works, producing an estimated 14,300 tonnes of green methanol per year.
According to the companies, renewable electricity from a co-located 50 MW solar facility and additional wind power will support hydrogen production through a 10 MW electrolyser, creating what they described as a circular waste-to-fuel model.
Once operational, the facility is projected to avoid around 118,950 tonnes of CO2 equivalent emissions annually, while creating up to 300 construction jobs and 60 permanent roles.
Climate Investor Three’s affiliate SA-H2 Fund is managed by Climate Fund Managers in partnership with Invest International.
The development funding will support engineering studies, environmental assessments, permitting and commercial structuring ahead of a targeted financial close in H2 2027. Commercial operations are expected to begin in 2029.
The companies said the project could also return 50,000-60,000 cubic metres of industrial-grade water annually to the local utility, supporting water reuse in the region.
Green methanol is increasingly being explored as a lower-carbon fuel option for sectors including shipping, aviation and power generation, where reducing emissions remains challenging.
“This project demonstrates the effects of energy transition for industrial operations in the real economy – turning everyday waste into a valuable low-carbon fuel,” said Mphokolo Makara, CEO of SA-H2 Fund Managers.
