Green hydrogen revolution: SA and Germany forge alliance

Dr Kgosientsho Ramokgopa, South Africa’s minister in charge of electricity, and German vice-chancellor, Robert Habeck, officially forged a collaboration.

The groundbreaking move will harness the vast potential of green hydrogen, placing South Africa as one of the key players in this industry.

A joint declaration of intent was signed on Wednesday, setting the stage for the establishment of the South African-German Hydrogen Task Force.

SA key Hydrogen player

This partnership ushers in a new frontier for clean energy since the green hydrogen economy promises low carbon emissions and a global export potential of around R5.6 trillion ($300 billion).

South Africa, which holds 80% of Earth’s platinum group metals (PGMs) and 40% of the planet’s platinum and palladium supplies, could play a pivotal role in this market.

These precious resources are essential in hydrogen production.

SA-Germany collaboration

Moreover, this collaboration will connect South African green hydrogen market developers with German off-takers, bringing in addition project funding.

The partnership is expected to create commercially viable projects in South Africa, meeting international green hydrogen demand and supply.

Furthermore, this task force will create business opportunities for South African companies to interact with German counterparts.

READ: Bridging continents: SA, Germany strengthen bonds amid global challenges

Harnessing wind, sun, and capital

South Africa’s wealth of wind and solar resources – combined with our capital markets – are perfectly positioned to propel the nation towards becoming a leading producer of this green fuel.

Green hydrogen is anticipated to be a critical substitute for natural gas in the future.

Last week, state-backed firms from the Netherlands committed to a $1 billion green hydrogen fund to invest in South African projects.

The task force will explore funding mechanisms to support the growth of green hydrogen and PtX value chains, while identifying key challenges for the development of both nations’ value chains.

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