Inside Mining Resourceful Mining May 2021

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THE RESOURCEFUL MINING ISSUE | 2021

ALTERNATIVE ENERGY

SA’S GREEN HYDROGEN POTENTIAL South Africa’s Hydrogen Society Roadmap is expected to be submitted to Cabinet for approval by early 2022. What does this mean for our country’s energy sector?

T

he Hydrogen Society Roadmap will explain how the country’s resources – including reliable sources of renewable energy such as solar and wind, as well as its ample supply of platinum group metals (PGMs) – can be effectively harnessed to produce green hydrogen. According to Kieran Whyte, partner and head: Energy, Mining and Infrastructure Practice at Baker McKenzie in Johannesburg, South Africa began the process of creating policy for the green hydrogen market by implementing the Green Hydrogen Atlas-Africa initiative in July 2020. As part of this, the Roadmap is intended to provide a guide for the country’s transition to a hydrogen-based energy system. The Roadmap will be a policy document outlining the costs, challenges, gaps, benefits and potential of green hydrogen, with the aim of eventually incorporating this into the country’s renewable energy plan.

Exploring hydrogen opportunities A report by global law firm Baker McKenzie – Shaping Tomorrow’s Global Hydrogen Market – outlines how, despite regulatory challenges, legal complexity and the

South Africa’s PGMs supply is advantageous for the development of a hydrogen market

current lack of incentives to invest in decarbonised hydrogen without government support, important opportunities exist for businesses seeking to reap firstmover advantages. In Whyte’s opinion, South Africa’s green hydrogen potential could produce significant advantages for investors and the country, but legal certainty is needed, and infrastructure shortfalls must be addressed. “While it is still early in the process, transactions have begun around the world and investors are starting to look at what governments are doing to support hydrogen initiatives. As such, the Roadmap is eagerly anticipated by the energy sector,” he says. Baker McKenzie’s report outlines

Kieran Whyte believes that South Africa’s green hydrogen potential could produce significant advantages for investors and the country (Credit: Baker McKenzie)

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