By Lehlohonolo Lehana.
Saudi Arabia wants to be the biggest supplier of hydrogen and intends to produce and export something within the neighborhood of about 4 million tons of hydrogen by 2030.
The world’s biggest oil exporter bets on becoming the world’s largest hydrogen producer without giving up its supremacy as an oil producer.
President Cyril Ramaphosa says he “looks forward” to seeing Saudi Arabian renewable energy firms and technologies entering the South African market.
Ramaphosa was speaking during the South Africa – Saudi Arabia Investment Forum in Saudi Arabia where he is currently on an official state visit.
South Africa has embarked on a renewable energy strategy which is aimed at reducing the load on Eskom’s coal fired generation fleet while also bringing down the country’s carbon footprint.
“We hope to see you partnering with South African firms, as we increase our renewable energy generation footprint and manufacture green energy components. And we are particularly pleased that Saudi Arabia is well steeped in the field of renewable energy and broad energy,” he said.
Ramaphosa said another area of “potential synergies” between the two countries is the green hydrogen economy which has been billed as a new frontier for clean energy.
To its advantage, South Africa holds at least 80% of the world’s platinum group metals and 40% of the world’s platinum and palladium supplies which are key components in the production of hydrogen.
“Saudi investors will find substantial opportunities to leverage in South Africa in this regard. Similarly, there are opportunities for South African business to leverage at [Saudi Arabia’s Green Hydrogen Project] NEOM as well.
“We are the world’s largest producer of platinum, a key input in hydrogen fuel cell technology. Our ambitious plans to unlock the potential of the green hydrogen economy include developing a hydrogen valley that stretches from the platinum belt in our country through the country’s industrial heartland,” he said.
The President highlighted that investment opportunities into South Africa’s green hydrogen sector are already on the rise.
“A number of multinational investors like annual American platinum, have already begun leveraging these opportunities.
‘Saudi investment across the value chain of the green hydrogen economy will not just support South Africa’s economic goals, but those of Saudi Arabia as well in his ongoing drive towards sustainability,” he said.