en.Wedoany.com Reported - Fluorochemicals South Africa (FSA), the Technology Innovation Agency (TIA), and Nelson Mandela University (NMU) have signed a Memorandum of Agreement (MoA) to advance the Fluorochemical Strategic Innovation Program (FSIP). TIA is an agency under South Africa's Department of Science, Technology and Innovation.

The MoA formalizes the development and execution of a national program aimed at establishing a local fluorochemical industry to unlock the value of South Africa's fluorspar reserves while reducing dependence on imported fluorochemicals.

FSA Executive Director Ivan Radebe described the FSIP as "a transformative step toward building a new industrial value chain in South Africa." FSA itself is advancing the construction of a 100,000-ton-per-annum fluorochemical plant, centered on a 60,000-ton-per-annum high-purity anhydrous hydrogen fluoride (AHF) plant, located on an 80-hectare site in the Coega Special Economic Zone in the Eastern Cape.

The AHF plant is scheduled to commence production in the third quarter of 2029, targeting both export and local markets. Although the local market for direct use of AHF and hydrogen fluoride remains small, it is expected to grow with the development of industries such as rare earth and critical mineral processing, lithium iron phosphate battery production, and pharmaceuticals and refining.

Radebe stated that the development and construction cost of the AHF plant, with a 30-year operational life, is approximately ZAR 3 billion, and is expected to create 150 direct jobs and 1,050 indirect jobs. As part of the FSIP, training and research and development for the project will be based at NMU, as new skills required for AHF handling and processing need to be developed from scratch.

The project team is currently completing critical permitting and design activities, with process and storage technology sourced from a European technology supplier. Radebe said the project will enter the engineering, procurement, and construction market through a tender process by the end of this year. Following the AHF plant, additional downstream units will be built to produce higher-value fluorochemicals such as fluoropolymers and fluorinated refrigerants.

Radebe noted that the MoA between the government and industry comes at an opportune time, as global demand for fluorochemicals is growing rapidly, driven by developments in artificial intelligence, renewable energy, battery energy storage systems, electric vehicles, pharmaceuticals, nuclear energy, and mineral processing. Government policies such as the Critical Minerals and Metals Strategy and the Industrial Development Strategy are key enablers for establishing a fluorochemical industry in South Africa.

"South Africa has one of the largest fluorspar reserves, a critical mineral considered the core of key technologies underpinning modern life," Radebe said. He added that the country has over 50 years of accumulated fluorochemical research and development at institutions such as NMU and the University of Pretoria, laying the foundation for South Africa to become a key hub for the supply of high-tech fluorochemicals.

Fluorochemicals possess properties such as heat resistance, electrical stability, and water repellency. Radebe noted that these characteristics require specific operations, proprietary know-how, and intellectual property, creating high barriers to entry. He added that the fluorochemical industry is a USD 30 billion sector, with demand expected to grow exponentially in the future.

Radebe is a founding member of FSA. He previously served as Managing Director of NTP Radioisotopes (Europe) South Africa and as Senior Manager for Development at South Africa's first utility-scale wind farm on behalf of Eskom. FSA was founded in 2021 by Ivan Radebe and Dimakatso Radebe to develop, own, and operate commercial-scale fluorochemical plants in South Africa. FSA is wholly owned by BRR Investment Holdings, headquartered in Johannesburg, which has investments in renewable energy, real estate, management consulting, and chemicals.

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