ENERGY
THE RACE TO GREEN HYDROGEN IN AFRICA Hydrogen is an attractive opportunity that could realise a cumulative global investment of USD450-billion by 2030. Countries are shifting away from a dependence on fossil fuels such as coal – a crucial export for South Africa, so the development of our hydrogen economy could be a game changer. BY FITCH SOLUTIONS
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outh Africa is home to 75% of the global reserves for platinum group metals (PGMs), which are used in hydrogen and fuel cell technologies. About 40% of PGMs are used in catalytic converters for internal combustion engines (ICEs). The potential decline of ICEs due to climate-related restrictions threatens the existence of this market and the future demand for PGMs. Through the hydrogen economy, South Africa can mitigate this with PGMs in hydrogen fuel-cell vehicles and greenhydrogen production technologies. Given our share of PGMs and their contribution to the economy (R187.6-billion in 2019) and the dire unemployment situation, it is essential to capitalise on the increased demand for hydrogen applications that require PGM metals. The PGM industry currently employs about 160 000 people, with two to three indirect jobs in
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other industries for each direct job, resulting in almost 400 000 jobs. The potential for hydrogen to support the growth of our renewable energy industry as an energy-storage solution would also contribute to job creation.
JUST TRANSITION: THE CORE OF FUTURE POLICY
There is a need to ensure inclusive participation in the transition and that substantial benefits of a green economy are shared. The World Resources Institute considers our national dialogue on just transitions one of the most advanced and South Africa was the only one to have included a just transition in its Nationally Determined Contributions (NDCs) in 2015. In early 2021, the Presidential Climate Change Coordinating Commission was established to coordinate South Africa’s just
