Building South Africa’s Green Hydrogen Future

What does it take to turn a bold vision into a nationally recognised strategic infrastructure project?

In this episode of AFF Winds of Change, Afonso Faria speaks with Abigail Moeletsi, Founder and CEO of Solinzi Power, about her entrepreneurial journey and the development of the Marydale Enerfusion Park.

Recently awarded Strategic Integrated Project (SIP 20E) status under South Africa’s National Green Hydrogen Programme, the project represents one of Africa’s most ambitious integrated renewable energy and green industrial developments.

Together, they discuss the project’s vision, its impact on agriculture and industry, the significance of SIP status, the roadmap toward financial close, and the partnerships helping drive the initiative forward.

This conversation offers a unique look at leadership, innovation, and the future of green hydrogen in Africa.

Transcript

SPEAKER_05 0:07

Welcome to F Windows Change. The show that takes you behind the play.

SPEAKER_04 0:25

With decades of experience in management supervision. We invite you to listen. Enjoy in the conversation.

SPEAKER_00 0:49

Welcome back, AFF Winds of Change, a podcast. As mentioned last time, the peak season has started more or less two months ago. We are now heavy working. Everyone's out there busy, but nevertheless, we are making time to focus on the podcast, to maintain the podcast with a certain tendency and a frequency as promised. And today we have something special. We have something that things us also into something that we've gone into more or less, which is developing, supporting, and giving a know-how and giving also a little bit of ourselves into other markets and other regions. So today we have Abigail Guletsi, founder and CEO of Solinzi Group, Solinzi Power. We will talk about that a little bit later on with Abigail in South Africa. They are going to go into green hydrogen, green ammonia, fertilizer projects, solar wind. It's an exciting project that is under development and it's taking good steps forward. But I will not go into those details today. We are talking with Abigail and we're going to go a little bit more into depth with Abigail. She has been leading in South Africa's clean energy future. So she's one of the persons that has been pushing for South Africa and Africa to take a step further and to do more to develop and support more local communities, but the energy grid itself. So we're going to talk about vision, persistence, purpose, the ambition as well, and what drives someone to push that further. We're going to talk a little bit more about the Maryland and the Fusion Park, which is Lynch's project, how they are the status of it and what they have on their mind in the vision that they have, what the purpose is and what the future will bring. We are actually one of the European partners in that project. So we are also looking forward to the further development and to how it's going to go into the future. But furthermore, let's talk with Abigail as a person that is behind that project, that is behind that change. Let's welcome Abigail. Abigail, welcome to the AFF Winds of Change.

SPEAKER_01 2:50

Thank you. Thank you, Ami.

SPEAKER_00 2:52

Because you again catch up with this is a pleasure. Let's start with the beginning. What inspires you to go into this journey of making evolution, of going further than what was already there with green energy drive behind all of it?

SPEAKER_01 3:06

Thank you once again, Alfonso, for having me. It's a privilege really for me to be able to share my story on your platform and exactly who we are as Salenzi and our flagship project, the Merydale Interfusion Park, just to give some more insight and shed some light on what we're doing. My journey actually did not really start in the boardroom, the actual Salenzi or even the Merydale Interfusion Park. It really began in Marydale, the town of Merydale, a very small town in the Northern Cape. That's where I grew up. Just a personal background to everything. My dad was the principal of the only school in Marydale for 22 long years. I can tell he's passing into my mom also. She was a teacher at the very same school. She retired about three years back. So at the moment, she's running our personal family farm. And I have watched this small community of mine, about 3,000 to 4,000 population rendered to almost hopelessness and almost like they were forgotten people. I had the opportunity and the privilege to go study to further my career. And every time I would go back home, I would see the same pain, the same need, but also the same love. And the Merydale Interfusion Park project was really born out of that tension. The need to restore hope and the dignity to people. The land that the Merydale Interfusion Park will be built on is actually my family farm. So that land we have secured for the project. Over the years, for the past 10 years, before I actually started Solenzi Power and had the privilege of teaming up with my partners currently at the moment, was working actually tirelessly to put together back then. I was looking at only a solar farm development on the property. But we pivoted and we evolved to where we are right now. So yes, that's in a nutshell where we started, how the idea was born, really out of community-centric development and wanting to bring positive change to my people. So that's where it was born. That's amazing.

SPEAKER_00 5:33

That is really amazing. But that's quite the mission then because especially if you are also local, people who are going to look up to you. So actually at least do everything you can to support the community, right?

SPEAKER_01 5:44

Exactly. And that also adds a bit of pressure, but bit pressure. So we have to deliver, try and stick to our timelines. And so far, I have to say, Alfonso, we are on track. And so it's really at the heart of not only Salenzi, but this very Merydale Interfusion Park is really the upliftment of the local community, especially. We're also looking at the broader spectrum of towns in the surrounding area. It's, I think, up to about 100 kilometer radius within the development where we will be looking at socioeconomic ways of developing those areas. What we have in place as well, which is worth mentioning, is the Jan Villi Community Trust that we have already drafted. So it's a trust specifically established for the community. So the community will have equity shareholding of about 9 to 12%, depending on future aspects. But for now, we're looking at 9 to 12% that the community will own within the actual project. And we obviously also have an extensive social development plan in place already. We're working hand in hand with the CATEMBA local municipality to look at ways of, for example, businesses that are already registered within certain trades and so forth. And so we're working hand in hand with them to actually see how we can utilize local expertise within the development.

SPEAKER_00 7:26

That's one of the things that is most important, and our experiences more within onshore wind farms. It's the same, it doesn't matter what country we are working, it's the same issues basically that we face. And it is really important for the developer to be part of the community as well, to take some kind of action into the community. And I'm not talking just about upgrading roads, infrastructure, and so on, also to support and give back to the community because that is actually they will give you more support. And in the end, if we're looking into developing infrastructure, developing new energy resources and so on, then we need to develop the whole every single thing that everyone needs to be able to benefit from, not just about going somewhere. So that is really amazing.

SPEAKER_01 8:10

That's priority with us as well. And I think just to add on to further infrastructure development, specifically aimed at the development of the community. The actual site is located about 22 kilometers from the Orange River, which is one of the biggest rivers here in South Africa. So we are ideally situated to a point where we can actually, and we're planning, this is actually a subsidiary project within the Marydalena Fusion Park, is to have a water articulation system where we can supply the town of Marydale with clean drinking water so that families can have the luxury of just opening a tap at home and having water. Because the Northern Cape, and specifically where Marydale is situated in the Karoo, it's almost like a desert-like type of climate, they are experiencing at the moment a lot of fatigues. So that's also one of the ways that we can actually try and come up with a solution to what the people are currently experiencing on the ground. So that is definitely one of the initiatives that we are prioritizing. And our partnership with Siatemba municipality also puts us in a favorable position where when it comes to the integrated water use licenses and so forth, for it to be an expedited process. They are also very excited about the fact that the people will finally have a solution to their problem. We recently concluded and formalized our partnership with the Siatemba municipalities and with the fact that we are a national priority project at the moment. We have our SIP status. So all of these factors contribute to, in fact, most of our permitting processes, but also other initiatives, like, for example, with our local DFIs for finance and so forth will vastly be expedited.

SPEAKER_00 10:08

That is quite some project because you are taking the benefit of everything, actually, but you are also contributing with everything. So solar, winds, greener ammonia, but also drinking water, sporting community. I believe there's fertilizer coming out of the project as well, which will help the cultural aspect in the region as well. So, in a way, you will be developing the region a lot further. So surely there must be a year or a 15-year plan that you have in mind.

SPEAKER_01 10:35

Sorry, just repeat yourself again at the time.

SPEAKER_00 10:38

I'm saying surely that is a 10 to 15 year goal that you have in mind.

SPEAKER_01 10:42

First of all, for the local community, our mission really is if ever there is a young person out there, we want to be able to tell that person that you don't have to go outside of your local environment to look for opportunities. Right. Number two, we want to be able to have every person in Marydale that's part of a home from the comfort of their home open up a tap and have drinking water, right? Number three, we also want within the local environment when it comes to local farmers, for them to be able to have access to fertilizer. Right. For the province, what we want for the greater Northern Cape really is for the Northern Cape not just to be known for its sun and its land, but that we will be known for our industry, for industrializing the province. And for us to be known for our skills that are coming out of the province, and for us to be known for contributing positively towards our economy, not only locally, but also for the broader South Africa. I think that's that's where I would want to see us in the next 10 years.

SPEAKER_00 11:58

I can understand why you were awarded for the strategic integrated project in South Africa. Maybe you can help me understand if there is other projects as such ongoing in South Africa.

SPEAKER_01 12:07

We were the only project last year within the energy sector that were awarded substatus and the only female enterprise as well, and black-owned entities. What you have is infrastructure South Africa, that's actually the entity that is running with the entire program. It's under the National Green Hydrogen Program of South Africa. For the first couple of years, and with anything new, they are learning curves in a way. So at first it was not that stringent for entities actually to be awarded this status. What they have noticed over the years is that projects, specifically our IPPs, that have been awarded the actual status, say some even as far back as eight years, ten years ago, have not even gotten to a stage of financial close. They have become a lot more stringent in their qualifying criteria when they're looking at projects of our nature. So I have to also add that it is not only just designated for the energy sector, but actually all key sectors with industries within South Africa. So you'll have your built environment projects as well in construction and so forth. But specifically now with our sector, with the energy industry, with green hydrogen specifically, there's only, I think, a few projects that were awarded this in the past two to three years. Well, in the power now, we got our designation last year, and we were the only because a lot of projects that have been awarded previously, they never even got off the ground. So we have the privilege really to say that we have been awarded that status, and we are so far with timelines, we have met every single criteria when it comes to adhering to what's required of you as an entity to stay, so to speak, in the race. Because the other thing that we also need to understand is that it can be revoked at any time because of non-performance. So Salenzi Power up to date, we have actually outdone ourselves in many ways as well. So, yes, I have to say that yeah, we're in this race in many ways. We are a lean team. We might have started at the back, but we're catching up very fast, and we're on track with our own internal milestones and targets that we have set out for the next 50 years.

SPEAKER_00 14:48

Yeah, like I said in the beginning, I am following it. SAFF is one of the partners, and it's amazing the effort and the work that you and your team has put into it, and you've never given up, you've always moved forward. It's always lessons to learn, it's always lessons to take when you see that there are other entrepreneurs out there and just not giving up and keep going because it's not easy. It's not easy being a company owner, being self-employed, it's not easy to keep going whilst everything is against. It's not easy being as a woman in this world, it's not easy also within South Africa, within the difference between white and black. It's not you can imagine that it's complicated to be a black-born company within the country. So it's still divided, you still have that division there. Amazing.

SPEAKER_01 15:30

Yeah, no, the divide is still there, but I also have to add bureaucracy as well. Because that's also been one of uh major challenges that we faced within the company. We have seen and we've experienced where, for example, after we've submitted a funding application to a DFI, that an official would come to us and admit openly that they never even opened our files. So we've come to realize that there is a sort of a disconnect between the government departments and our DFIs when it comes to communication as it relates to their policies and their mandates, to a point where we've even had to at multiple occasions explain to these entities even what it means to have, which is something that is endorsed by the president, endorsed by the presidents. But unfortunately, we're also faced with those challenges. And yes, of course, anything good never came easy. So we are absolutely equipped, sometimes maybe not as equipped for the challenges as they come, but we learn as we move along. And of course, we are also fortunate to have brilliant partners such as yourselves as well, Afonso. And I mean, you and Tony from Renewables in Africa, you have been with us, I would say, for the longest. You guys have believed in our vision from the beginning, and that's also a privilege. Support as well from local government, I have to mention, with the Siatemba municipality, we also have institutions like Sunedi that have from the very onset of our project with the Merydale Inner Fusion Park, they have believed in what it is that we're doing and they have supported us 100%. So it's not just about what we can accomplish as a team, but partnerships that we have forged over the years have also built and shaped absolutely agree with that.

SPEAKER_00 17:39

When it comes to politics, it's always especially when it's projects that is such long-term projects, and politics sometimes they don't have that vision because they only have the vision for the time being of the mandate that they have. And they are not sure sometimes what's going to happen once they leave. They don't want to leave, you know, they don't want to give the next guy the good shot. They don't want to want, they don't want to prepare the road for the next guy to then take profits on it.

SPEAKER_01 18:05

That's just the condition of the human heart. And unfortunately, it's something that is it's very hard sometimes to navigate around. But I always say that I'm a believer that this initiative of ours, it's really built on a premise of uplifting a fellow man or a fellow woman, our fellow brothers and sisters. And we even have Tony, but we have gone as far as, in fact, it's built into the very business, our business model is that the locals, specifically now for Mary Dale, we have a women-led, or in fact, it's only women, mothers of the town, that would meet once a month in prayer to stand together in unity for the cause of the initiative. I think sometimes when politics is involved, if you can speak to the human nature, if you can get to the bits and know which ones to pluck, you you can get a lot done.

SPEAKER_00 19:11

If you're doing something good, then eventually good will win. Eventually, then people will be behind you. That's why it's so important to involve the local community, it's so important to involve everyone and to also project for the local.

SPEAKER_01 19:30

Yes, we've transitioned or we are transitioning from feasibility to bankability at the moment. So we are looking at the last quarter of this year to have secured our development financing, which means that we uh would have had our EIA studies done as well as our feed. So we're looking at least by 2027, quarter four, really, to reach financial close. We'll start construction in the first quarter of 2028. Yeah.

SPEAKER_00 20:09

That's really amazing. And all the steps, all the milestones, sometimes bigger than sometimes smaller, but they're all important milestones that you reach and you are still to reach, so you keep on working on that. Yes, yes. Yeah, let's see.

SPEAKER_01 20:21

The plan is to be fully operational by first quarter of 2020.

SPEAKER_00 20:26

And that is when it will become operational.

SPEAKER_01 20:28

Operational, yes.

SPEAKER_00 20:30

That's an amazing diving, especially with the large scale of the property.

SPEAKER_01 20:34

Using renewable energy resources like our wind, solar, and battery energy storage to power on-site electrolysers for the production of green hydrogen. So this green hydrogen then is synthesized into green ammonia, and then this green ammonia then is further manufactured into different derivatives, such as your fertilizer, your industrial chemicals, and the oxygen as a byproduct from your synthesis for your green hydrogen, then we'll also sort of beneficiate that on-site for medical use oxygen. All of these operations are done on-site, which actually puts us in an advantage when it comes to the fact that we can beneficiate the entire value chain and value stays within the local economy. And yes, we will look at export as well, but the whole idea really is for us to retain most of the revenue that'll be generated through the production of our entire plant within the broader South Africa. That's also one of the things that we prioritize is the fact that we want to grow our local economy and we want to keep the value chain within. in the local communities.

SPEAKER_00 22:01

What is amazing also is that you are having almost zero waste in the end. You are making use of all the byproducts and all the derivatives come out of it. You're going to reuse that. So that to be proud of as well within the whole project of development and design that you are taking all of those valuables, all of those derivatives into consideration as well. So zero waste that is amazing.

SPEAKER_01 22:23

A circular economy that's one of the aspects of our business model that we're trying to see how much we can optimize what we have on site for nothing to go to waste. Just for an example as well like with the water that will be coming from the Orange River, right? We have tanks as well on site and those sediments even is not going to go to waste because we'll be using that for the production of the fertilizer.

SPEAKER_00 22:51

So we are optimizing as much as we can and we're trying to get value out of every single component that's coming out of the close off the podcast I think we've touched on all parts that we should touch here on meridial and fusion park for the last question I'll actually ask Tony to jump into because I want to have his opinion on this as well but what is your vision for South Africa and what is your message for the future leaders so South African entrepreneurs leaders that are out there have vision and want to bring it out to the world what is your message to them?

SPEAKER_01 23:28

Sorry Tony is this for me or for Tony?

SPEAKER_00 23:30

No it's for you I'll ask Tony later on to come on answer on that question. But I would like for your vision on that first and your your input on that.

SPEAKER_01 23:39

For the broader South Africa um my vision would be that within 10 years I want us to be at a position where we would have proven that the green transition can be just the community in between jobs and the environment and that a woman led enterprise from a small town can lead a revolution. I would love for South Africa also to attract well across the continent and globally. And when it comes to our raw materials that we don't just stay at a stage where we are suppliers of raw materials but that we will get to a place where we can you've cared like your fertilizers green fields for ships and so forth. That's where I would love to see South Africa in 10 years. What about the future leaders what is your message for the future for women I would say never underestimate your abilities start with what you have even if you think it is small or little partner up with the right people get it in the relevant able to not only gain experience but also learn from the best within whichever industry it is that you want to find yourself in believe in your dream but put action into it that's why what I would say that's amazing.

SPEAKER_00 25:01

I can go on no but that is an amazing message for women in particular in helping a father of a 15 year old daughter that is what is near take that first step and take the action believe in yourself. Thank you for that I would like to ask you joining us because I would like to have Tony's view on Africa itself Tony welcome you being very much involved with the growth and the development of Africa in general so I would like for you also to share with us your vision in your mind on this.

SPEAKER_02 25:30

Yes I think now you can hear me so I can hear yes yes I followed on the conversation very well and then I'm very glad to have Abigail on the show because as you say we need people like Abigail to demonstrate to people that this kind of flagship project would be led also by women from the country is very important. And for me as a project Solin depart Marydale more specifically in Eccusion Park a tick all the boxes because for the country of Africa it's very important to change the narrative away from this era whereby people only come and get the raw materials to take it elsewhere develop it and bring it back at even a more expensive price. I think we need a lot more projects like the Merydale which is contributing to really setting up a new dynamic where we definitely would be boosting local content ratio right and when I talk about that we're not just talking about lib service here how much component the percentage of component that would be sourced from Africa from specifically South Africa. So we want to see that percentage of local content ratio which is above the 20% because usually when it's less than 20% that means they're only simply assembling things and shipping up right so beyond the local content ratio I talk about the scale transfer as well for me it's an opportunity to see South African engineers African engineers technicians being trained in the technology here and give them the opportunity to grow in this new market which is shaping up so also use this as an opportunity the project to develop a supplier ecosystem right that's very important to give the opportunity to local enter the supply chain right this is how you now really uplift the whole community and give them an opportunity to grow not just have them looking at a magnificent project which has been built on that province. You want to use that to develop the local supply chain local SME get them to enter that boost as well the R D because as I was talking to Brian who is Abigail co-founder in here he told me that for them to get the SIP status they've had to figure out how to fix issues that we're coming across with and actually invent some of this solution themselves and I think there's already a couple of platforms that they've developed which I thought whoa do you know that this platform yes it's useful for Solindse but you can actually even market that to the rest of the industry and that's actually what we we're talking about this opportunity to develop new solutions that we present to the market. And the end of it I'm just going to close off and say also allow the project to be used as a way for revenue retention making sure that not all the value is exported right so we want to use that to keep part of the money through wages taxes reinvestment so repatriated profit. So this is what I'm saying this is the new kind of project that we want to see certainly across Africa but for sure as well on a much larger scale across the continent.

SPEAKER_00 28:41

So that's why I personally like this project fully agree with thank you very much Abigail thank you very much Tony it was amazing to speak with both of you it's an amazing view on the project of Marie Dill Abig you have a beautiful project on your hands with so much potential and so much vision what what other people should look into and they should take lessons from how you are approaching it and also how you are developing it. Thank you very much. Thank you as you've heard that energy transition is not just about building a new plant or a new wind farm solar farm green hydrogen it's not just about that. So energy transition is about actually taking the technology taking the projects and developing the areas the regions the communities supporting communities it's about supporting growth developing growth that is how we can make sure that the energy transition is actually something that makes sense. Otherwise we are just making more energy to put into a grid and no one is really benefiting from it. Of course I think that none of us have all the skills that we need to develop our businesses and none of us are born with all the correct knowledge and all the correct experience experience is something that is built along the way and you need to partner up you need to look into persons that have the same achievement as well partner up with them discuss openly sit around the table make a plan develop don't be afraid to go out there and especially for the women entrepreneurs but all entrepreneurs out there don't be afraid believe in yourself believe in your dream keep going but don't take things for granted what I mean is you need to take a step you need to start where you are and if you don't have all the means and all the ways to get where you want to go make that first step. That first step is the one thing that is stopping you from growing further because if you don't take that step you'll never get going you'll never get yourself into the motion of reaching that goal. It's always going to be a dream. Dreams are there to be achieved but dreams are there to be worked on. Today we brought us into South Africa into a project that is going to be developed and as you heard it's going to be in action in 2030. It's going to revolutionize the industry or how we are looking into the industry itself zero waste product I'll come back again with another podcast with another beautiful insights another more entrepreneurs and more people out there with visions, missions and passion.

SPEAKER_03 31:12

Stay safe keep working keep building renewable energy thank you guys take care of change we appreciate your time and hope you enjoy this deep dive into the wind energy world stay tuned for our next episode where Fon Sopharia returns with more insights until then keep riding the winds of change