Mining Indaba takes a long, hard look at green hydrogen

The discussion on South Africa’s position on hydrogen has been gaining momentum at this year’s Mining Indaba taking place in Cape Town.

The event has seen over 8 000 delegates from across the country descending on the mother city to network and learn about the new developments and how the mining sector was fairing in the face of the country’s current energy crisis.

From decarbonisation goals to energy solution

While SA’s hydrogen journey initially began as a means by which the country could reach its decarbonisation goals, it is now being viewed as the possible answer to rescue South Africans from Eskom’s woes.

ALSO READ: Green hydrogen: Global demand on the rise as SA poised to become ‘significant player

Dex Machida – one of the KPMG speakers, panelists and moderator for option at the hydrogen opportunity debate – told The Citizen that the indaba was really focused on the energy conversation and in terms of hydrogen, there has been quite a bit more interest with delegates willing to continue the conversation at a later date.

“There’s been a lot more focus from government, and there are more conversations in the private sector around this. Government’s comments indicate that there might be greater opportunity for the private sector to engage on the hydrogen front,” Machida said.

“The mining sector is recognising that there are a couple of issues here in order for them to viably run their operations.

“One of those is around energy security because, again, security of supply from an electricity perspective and other fuel sources – more electricity than other fuel sources – is being challenged and I guess hydrogen is looked at as one of the potential factors that can be explored in conjunction with renewable energy.

ALSO READ: Green hydrogen: Fail-safe to cut emissions, or a financial burden for SA?

Medium to long-term view

“This is something of a medium to long-term view, but looking to hydrogen as the alternative energy source will see miners killing two birds with one stone.

“Miners are also recognising that the commodities that they produce primarily go across the border, and those sort of exports now have certain regulation checklists they need to tick off. One of those pertains to cutting carbon leakage.

“Miners recognise that they need to decarbonise their whole operations in order to stay competitive.

“I think then that from that perspective, hydrogen is recognised as one of the enablers to actually allow them to do just that,” he said.

Problems with hydrogen

Machida explained that the problem with hydrogen, however, is that the cost of producing it is still relatively high.

“We are talking primarily green hydrogen here. The volumes aren’t significant in order for it to make a dent in the energy mix – at least from a country perspective, we’re still quite a long way off. So it’s expensive to produce as it is not bulk produced.

“When you take all of this into consideration, all together, the picture it paints is that everyone realises that it’s a factor we need to pursue, hence the investment and the conversation, but there is also recognition that this is not going to show real value in the next five years or so. This is more of a 10-to-15-year plan,” he explained.

ALSO READ: Sasol’s dream of a green hydrogen world

Skills in SA to manufacture hydrogen

Machida said that both government and the mining sector were therefore sober to the ideas put forward. They know hydrogen is going to save the day, just not today.

“I think, there is a fair amount of a sense of reality around this on the ground. So everyone is looking at it from a long-term lens,” he said.

South Africa has been pouring time and resources into honing the skillset to handle the project. Machida explained that government was already using TVETs to fill the gaps in terms of developing skills and capabilities.

“Fortunately, we’ve also been very blessed to already have some of the needed skills to take on the hydrogen project. The likes of Sasol, for example. This is an institution that developed some of the technologies that already use hydrogen through some of their processes,” he said.

“So I think when we look at today’s hydrogen economy, we do already have the skills that are needed. We know how to handle hydrogen and we know how to use hydrogen. All we need is the patience to get there.”