South Africa’s massive winds and solar resources are expected to provide the tailwinds of the much-hyped green hydrogen strategy. As the Just energy transition gains momentum in South Africa to alleviate the energy crisis and Government taps into new energy sources, the discussion has accelerated from whether the country has the capacity to generate new energy to a much focused and widely canvassed strategic position to fully explore green hydrogen through utilizing the vast renewable base (wind, solar or hydro) mix that has attracted investors.
South Africa’s rich endowment of renewable resources for solar, wind and biomass power generation, Fischer-Tropsch (FT) technological capabilities, skills, and access to platinum resources places the country at an advantage for developing the green hydrogen value chain and being a key supplier into the global hydrogen market.
In addition to optimal environmental conditions, South Africa is well-endowed with the key ingredient critical for the hydrogen economy – platinum group metals (PGM’s) – PGM’s are used in the electrolysers needed to produce green hydrogen and as a fuel in hydrogen fuel-cell electric vehicles. South Africa has more than 80% of the world’s platinum reserves and is home to the largest platinum mining companies in the world.
The start of South Africa’s involvement in the Hydrogen Economy dates back to 2008 when Hydrogen South Africa (HySA) was officially launched by the Department of Science and Innovation (“DSI”). The vision of HySA was to use local resources and existing knowledge to create knowledge and human resource capacity, enabling the development of high-value commercial activities in hydrogen and fuel cell technologies
Such is the excitement around this that it is expected that the largest chunk of energy within the diverse mix would be renewables by 2050, due to the anticipated reduction of renewable energy costs in the next few years.
There has been no shortage of international support for the green hydrogen push; with most countries eager to establish what the South African experience would deliver in terms of tangible contribution to the grid. The German Development bank KfW has committed R410 million as part of a grant partnership with South Africa’s IDC to explore green hydrogen projects, as part of a Partnership with South Africa and other international partners
Mining companies have leapfrogged other sectors in the use of green hydrogen, having deployed their large PGMs as catalysts in Fuel Cell Electric Vehicles.
Along with South Africa’s Department of Science and Innovation, Engie, and Bambili Energy, Anglo American has been part of a feasibility study that looked at the possibility of setting up a “hydrogen valley” anchored in the platinum group metals-rich Bushveld geological area. The study’s findings revealed the multiple benefits that the project could help unlock, including adding more than $3.9bn to the country’s GDP by 2050, and creating more than 14,000 jobs per year, across the entire hydrogen value chain.
President Cyril Ramaphosa will officially open and deliver the keynote address at the special-edition Sustainable Infrastructure Development Symposium South Africa (SIDSSA) that will focus exclusively on Green Hydrogen.
The South Africa Green Hydrogen Summit as the event is branded, will be held in Cape Town at Century City, from Monday, 28 November to Wednesday, 30 November 2022.
South Africa is one of the founding members of the Africa Green Hydrogen Alliance (AGHA) which seeks to promote continental green hydrogen cooperation.
The Summit builds on the opportunities identified during the Sustainable Infrastructure Development Symposium South Africa (SIDSSA) of 2021.
