South Africa plans to mobilise a further R10 billion for green hydrogen development, with the sector expected to support reindustrialisation and create tens of thousands of jobs, Trade, Industry and Competition Minister Parks Tau said.
Speaking at the Africa Green Hydrogen Summit being held in Cape Town, Tau said hydrogen will be part of a new industrial framework that includes green chemicals, green shipping fuels, advanced manufacturing and new export industries.
President Cyril Ramaphosa, although he was unable to attend the summit, announced the first wave of South Africa’s green hydrogen and Power-to-X projects: Phelan Green Group sustainable aviation-fuel project in Saldanha Bay; Coega Green Ammonia Project; Saldanha Hydrogen Direct Reduced Iron Project; Prieska Power Reserve; Green e-Fuels Producers Green Methanol Corridor; and the Green Hydrogen Solutions Project.
Ramaphosa said in his written speech a second wave of projects will follow. The projects are at different stages of development, ranging from preparation and feasibility studies to front-end engineering and design.
“These are the opportunities that matter. These are the industries that will determine South Africa’s competitiveness in the decades ahead. Our ambition is clear. We must export more value and less raw potential. We must move up the value chain. We must become producers, not merely providers of resources,” Tau said.
He said the government has identified 24 hydrogen projects through the Just Energy Transition Investment Plan programme management office at the Industrial Development Corporation (IDC). Several have completed pre-feasibility studies and are being supported by €40 million (R7432m) funding from Germany’s Kreditanstalt für Wiederaufbau (KfW) Development Bank.
Climate Fund Managers last month announced the first close of the South Africa Green Hydrogen Fund at R3bn. The fund is supported by the European Union’s Global Gateway initiative.
The Global Gateway programme has also made grants available for hydrogen infrastructure and to support Transnet’s efforts to reduce emissions. Tau said R490m would help leverage hydrogen infrastructure investment, with the potential to mobilise a further R10bn, while R138m would support Transnet’s decarbonisation efforts.
Tau said South Africa’s industrial transition pathways pointed to tens of thousands of additional jobs and billions of rand in economic activity over the coming years.
He called for greater regional cooperation through platforms such as the Africa Green Hydrogen Alliance, saying no single African country could build the sector alone.
Through the Critical Infrastructure Programme Fund, the Department of Trade, Industry and Competition is supporting Hive Hydrogen’s development of the Coega Green Ammonia Project.
“This will not only benefit the region,but will also contribute to the broader economic landscape of South Africa. This funding announcement today is particularly significant as it practically puts in motion the decarbonisation pillar of our Industrial Development Strategy,” Tau said.
Deputy Minister of Science, Technology and Innovation Dr Nomalungelo Gina said Africa needed to increase its participation in the green hydrogen value chain over the next three years.
She said the sector was entering a critical phase as projects moved from feasibility studies and planning towards investment, implementation and large-scale deployment.
“Every major project should be viewed as an opportunity to develop local supply chains, technology capability, manufacturing and skills,” Gina said.
The Department of Science, Technology and Innovation aims to ensure that growth in the sector is accompanied by the development of technology capability, intellectual property, skills and local industrial capacity.
Through Hydrogen South Africa, the country has developed expertise across the hydrogen and fuel-cell value chain, including catalysts, fuel cells, electrolysers, hydrogen storage, metal hydrides, compression and refuelling technologies.
Gina said South African hydrogen intellectual property had been filed in 14 countries, including South Africa, with about 70% linked to commercial products. These figures should be independently verified before publication.
Several catalyst products are already being sold to local and international customers, while the Technology Innovation Agency is working towards establishing local manufacturing capacity.
“These examples demonstrate that the journey from research to market is possible. But they also show us that research, development and innovation alone are not enough,” Dr Gina said.
The Eastern Cape Green Hydrogen Strategy was also unveiled at the conference. It sets out how the province plans to use its renewable-energy and industrial advantages to attract investment, develop new industries, create jobs and strengthen its position in the global green economy.
The strategy was developed through a partnership between the Department of Science, Technology and Innovation, Nelson Mandela University and the South African National Energy Development Institute.
Eastern Cape Premier Oscar Mabuyane said it provided a roadmap to attract investment, deepen value chains, support localisation and skills development, and help existing automotive, manufacturing and export industries remain competitive as global markets shift towards lower-carbon production.
The province has more than 2.4 gigawatts of renewable-energy projects operational or under construction, and a renewable-energy pipeline exceeding 10 gigawatts, according to the strategy.
An inaugural Hydrogen Deal Book was also launched at the conference alongside the first wave of South Africa’s national green hydrogen and Power-to-X projects.
edward.west@nationalmg.co.za
THE NATIONAL