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

President Cyril Ramaphosa said South Africa has a unique opportunity to create jobs, attract investment and development and develop rural areas and support a just transition from fossil fuels.

Ramaphosa delivered the opening address the South African Green Hydrogen Summit on Monday.

Green energy export

He said the summit aims to build on a foundation laid by the Sustainable Infrastructure Development Symposium of 2021, which highlighted South Africa’s potential as a global exporter of green energy.

“We recently released for public comment a Just Energy Transition Investment Plan as the basis for our pathway towards a low-carbon and climate resilient society.

“According to the Plan, South Africa will need approximately $98 billion over the next five years to enable a just transition and achieve our ambitious emissions reduction targets,” Ramaphosa said.

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The World Economic (WE) Forum defines green hydrogen as hydrogen produced by “splitting water into hydrogen and oxygen using renewable energy”, through a processs called electrolysis.

WE Forum cautioned that although renewable energy costs are dropping significantly, electrolysis for green hydrogen production needed to reduce its cost at least three times over the next decade to be a viable, cheap source of electricity.

Leading research

Ramaphosa said the Department of Science and Innovation had been leading research and innovation in green hydrogen in South Africa since 2007, through Hydrogen South Africa.

“Green hydrogen is identified in the Investment Plan as one of the four ‘big frontiers’ of a just energy transition, indicating that it has huge growth and investment potential.

“This presents a unique opportunity for South Africa to link its mineral endowment with its renewable energy endowment to drive industrialisation,” Ramaphosa added.

Green hydrogen

Ramaphosa said Sasol and the Northern Cape provincial government have made significant progress on the master plan for a green hydrogen special economic zone, which aims to support 40 gigawatts of electrolyser capacity by 2050.

“This would require approximately 80 gigawatts of renewable energy, which is almost double South Africa’s current installed electricity generation capacity.”

Ramaphosa added that South Africa was determined to become a world leader in green hydrogen, and that the potential for the country to emerge as a significant player in the green hydrogen value chain is immense.

“We look forward to welcoming more of the firms in the green hydrogen value chain and associated technologies into our market,” Ramaphosa said.

Compiled by Faizel Patel.

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