UNIDO and IDC Advance South Africa's Steel Decarbonisation Project for Green Steel Production

South Africa's steel sector, crucial for the economy, faces challenges in meeting low-carbon requirements. The UNIDO, IDC, and Guidehouse Germany have advanced a decarbonisation project, 'Accelerating South Africa's Steel Decarbonisation,' to the Detailed Preparation Phase with funding support from the Mitigation Action Facility. The initiative aims to unlock investment, strengthen policy, and support low-emission technology deployment, with a focus on a hydrogen-based pilot plant and renewable energy integration. A national validation workshop gathered stakeholders to finalize project design and align with industry needs ahead of funding submission in April 2026.

Published Mar 26, 2026

The UNIDO, in collaboration with the IDC and Guidehouse Germany, has advanced the 'Accelerating South Africa's Steel Decarbonisation' project to the Detailed Preparation Phase, supported by the Mitigation Action Facility. This initiative addresses the steel sector’s high carbon intensity and aims to unlock investment and technology for green steel production.

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Key components include a hydrogen-based direct reduced iron pilot plant and renewable energy integration. A national validation workshop held in Pretoria engaged stakeholders to finalize project design ahead of a funding proposal submission in April 2026. If approved, the project will be implemented by UNIDO with the IDC and Guidehouse Germany.