By Lehlohonolo Lehana.
President Cyril Ramaphosa says South Africa has the potential to emerge as a significant player in the green hydrogen value chain.
“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,” said Ramaphosa.
“Globally, the demand for green hydrogen and green hydrogen-based products, such as ammonia and synthetic jet fuels, is rising significantly. This presents a unique opportunity for South Africa to link its mineral endowment with its renewable energy endowment to drive industrialisation.”
“At the same, it will create jobs, attract investment, bring development to rural provinces and support a just transition from fossil fuels. This Summit is an opportunity to tell the South African story in this rapidly growing sector, “Ramaphosa said.
The president was delivering a keynote address at the opening of the inaugural South Africa Green Hydrogen Summit, held in Cape Town, on Tuesday.
Ramaphosa, alongside the Department of Public Works and Infrastructure, has initiated South Africa’s inaugural Green Hydrogen Summit outlining some of the country’s future plans.
The summit showcases the country’s offering as a large-scale, low cost, world-class green hydrogen production hub and total value chain investment destination.
It builds on the opportunities identified during the Sustainable Infrastructure Development Symposium South Africa (SIDSSA) of 2021.
The President said country looks forward to welcoming more of the firms in the green hydrogen value chain and associated technologies into the market.
“We hope to see these international firms partnering with South African firms as we increase our renewable energy footprint, green hydrogen manufacturing capability and local production of value added products,” he said.
The Green Hydrogen Summit is taking place soon after the conclusion of the UN Climate Change Conference, also known as COP 27, in Sharm el-Sheikh, Egypt.
Ramaphosa said South Africa used the platform of COP 27 to elaborate on its just green transition.
The president emphasised that South Africa has existing and future potential to produce green hydrogen.
It is estimated that South Africa has the potential to produce 6 to 13 million tons of green hydrogen and derivatives a year by 2050. This would require between 140 and 300 gigawatts of renewable energy.
The President explained that the focus would be on green hydrogen exports, electrolyser and fuel cell production, and the manufacture of green steel, sustainable aviation fuel, ammonia, fertilizers and renewable energy components.
“South Africa is an investment destination of choice. The country has proven itself as a gateway to a dynamic continent with great prospects. Africa is growing its output, is rapidly urbanising and has a young population.
“South Africa leads the continent in advanced manufacturing, science and technology. This country is a favourable, reliable and stable place to conduct business,” the President said.
Ramaphosa reiterated that government is driving regulatory and legislative reform to make the economy more competitive, to attract more investment and to create more jobs.