Japan is accelerating talks on a yen-denominated energy loan for South Africa while promoting ammonia co-firing technology, Bloomberg said Tuesday, citing Japanese diplomatic officials.
Japan will use the proposed loan to support South Africa's energy transition, though it did not disclose the amount, the report said, citing officials.
Japan's initiative adds to about $10 billion in climate financing already pledged to South Africa by European countries under an existing energy transition agreement.
Germany and Japan are expanding efforts to position their companies in South Africa, targeting opportunities in a market with strong solar and significant green hydrogen production potential.
Leaders first discussed the loan during a meeting between President Cyril Ramaphosa and former Japanese Prime Minister Shigeru Ishiba in Yokohama in August, the report added.
Japan is promoting ammonia co-firing, which replaces part of coal use at power plants with ammonia to reduce emissions while maintaining existing infrastructure.
South Africa can produce green hydrogen using its solar and wind resources, then convert it into ammonia for easier storage and transport, supporting cleaner energy pathways.
However, critics say ammonia co-firing could extend the life of coal plants, as South Africa still generates about three-quarters of its electricity from coal, the report noted.
has reached out to South Africa's Department of Electricity and Energy for any comments.
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