S Y N T H E T I C F U E L S Energy Security: The Role of Green Hydrogen

AUTHOR: Grace Kangotue TraineeResearcher@ RDJ Consulting

Courtesy:RDJConsulting

As the world continues to transition its energy system and decarbonize its energy supply, hydrogen enters the debate towards the global energy security future. The International Energy Agency (IEA) defines energy security as the “uninterrupted availability of energy sources at an affordable price” We might add, being locally sourced although local can take on various features

Further, IEA made a distinction between long-term energy security which refers to timely investments to supply energy for economic developments and environmental needs; whilst short-term energy security refers to the ability of the energy system to quickly respond to unexpected changes in the supply-demand balance

In pursuit of clean energy sources, the energy sector is now exploring green hydrogen as a new addition to the energy mix. The International Renewable Energy Agency (IRENA) highlighted in its 2022 Geopolitics of the Energy Transformation three ways in which hydrogen can bolster countries energy security:

Reducing import dependence - Countries can reduce energy import dependence by producing green hydrogen using local abundant renewable energy sources (wind, solar, hydro, biomass, or geothermal) to increase their domestic energy supply. As the domestic production of hydrogen grows, imported fossil fuels will be replaced. Thereby, substituting energy imports with domestic energy sources and redirecting domestic energy consumption away from world market fluctuations

Mitigating energy price volatility - Renewable or green hydrogen can protect large industrial off-takers from highly volatile fossil fuel prices, due to its long-term Power Purchase Agreements (PPAs) mechanisms. Renewable-based power is increasingly purchased using long-term PPAs where competitive prices are determined through auctions, where bidders bid and take the risk with the hope to lower cost and make higher profits allowing PPAs to minimize exposure to fuel price volatility. Introducing renewable-derived hydrogen to fuel mix has the potential to stabilize prices in key sectors such as aviation, fertilizers, and maritime shipping.

Boosting flexibility and resilience - Hydrogen has the potential to provide energy to remote areas, improve their resilience and solve energy security challenges faced by communities in these areas. Hydrogen can also bolster energy security and build resilience, especially for nations that are dependent on energy imports Hydrogen provides resilience within the energy system by storing large quantities of energy over longer time periods; enabling it to meet energy demand as it arises and store power when the demand is low. However, in times of potential supply disruption from hydrogen exporting countries, hydrogen importing countries that lack buffer capacity to offset such disruption, may fall at risk of being exposed to energy insecurity

The IEA in its 2022 Africa Energy Outlook suggested that in 2021 approximately 600 million people had no access to electricity and some 970 million people used harmful fuels as a cooking source in Africa. Having said that, several African countries are looking forward to leveraging the new renewable (green) hydrogen technology to improve their energy security as well as transform the global energy system into a carbon-free energy mix Further, most of these countries hope to see increased economic benefits that can help alleviate poverty.

Namibia, among the leaders, has aspired to produce about 10-12 Million tons per annum (Mtpa) of green hydrogen by 2050 and currently have 5 active green hydrogen projects running (Green Hydrogen Applications in the Port Environment, Hydrogen-Diesel Dual Fuel Locomotive Project Proposal for Namibia with Supporting Research Projects, Daures Green Village,H2-Pilot Plant / Refueling Station in Walvis Bay and Tsau //Khaeb National Park (Hyphen SCDI) Project) with a possibility for more projects expected to enter the market

South Africa also seeks targets to have green hydrogen production to 2 – 7 Mtpa by 2050 and has in place various strategies for its implementation. Various projects underway such as the H2@Scale initiative amongst others will see domestic as well as export opportunities explored As part of an international partnership, South Africa will get access to the latest scientific findings and leading practices Authors Bhagat, R and Wolf, N noted in our April 2021 edition that moderate estimates indicate that the country has the potential to be an important player in the green hydrogen economy (GHE) and could secure 10% of the global export market share. [It must be agreed that] South Africa is endowed with abundant renewable energy resources for both onshore and offshore power generation It is also possible to generate significantly more electricity from wind and solar PV energy than is needed by the country, even when considering spatial exclusion zones.

Could the growth in demand for green hydrogen production affect the prices of hydrogen value chains? As always, the discussion continues at briefing@rdjpublishing.africa

Readings: https://www iea org/about/energy-security https://www.irena.org/-/media/Files/IRENA/Agency/Public ation/2022/Jan/IRENA Geopolitics Hydrogen 2022.pdf https://gh2namibia com/wpcontent/uploads/2022/11/Namibia-GH2-Strategy-Rev2 pdf http://www thedtic gov za/wp-content/uploads/ExecutiveSummary-Green-Hydrogen-CommercialisationStrategy pdf https://www greencarcongress com/2021/10/20211007h2scale html https://www.energy.gov/eere/fuelcells/articles/h2scaleoverview

5G improves ESG and Profitability in Mining

AUTHOR: Chilombo (Olga) Priscila EconomicResearcher/Statistician@ RDJ Consulting

The mining industry is embracing digital technologies and automation to improve operational efficiency, safety, and productivity.

This includes the adoption of technologies such as artificial intelligence, machine learning, robotics, and IoT devices These technologies enable real-time data monitoring, predictive maintenance, autonomous vehicles, and remote operations market research reports, advisory and consulting services, there is growing acceptance for 5G adoption technology in mining.

5G networks enable real-time monitoring and control of mining operations, leading to improved safety and efficiency With 5G, miners can deploy advanced sensors, drones, and autonomous vehicles to collect data and perform tasks without risking human lives. By utilizing IoT devices and sensors connected through 5G networks, mining operations can optimize resource usage, minimize energy consumption, and reduce emissions.

RioSimpsonRiver(Courtesy:ImagebywirestockonFreepik)

The deployment of 5G technology in the mining industry in Southern Africa has the potential to bring significant improvements in both ESG (Environmental, Social, and Governance) factors and profitability Valued at US$2 15billion in 2023, the global 5G adoption in mining market looks set to grow over the coming years According to a market report by Arizton, a provider of comprehensive

Real-time data monitoring and analytics can identify areas for improvement, leading to more sustainable practices This reduces accidents, enhances worker safety, and improves operational efficiency The vast amount of real-time data generated through 5Gconnected devices can be leveraged for informed decision-making. By utilizing advanced analytics and machine learning algorithms, mining companies can optimize production processes, predict maintenance needs, and minimize downtime. This data-driven approach enhances operational efficiency and improves profitability

And so it is happening, Nkwe Platinum and South Africa Zijin Platinum, wholly-owned subsidiaries of multinational Zijin Mining Group, have joined hands with MTN and Huawei.

As part of the agreement, MTN and Huawei will provide 5G-based ICT solutions for smart mining requirements at the Garatau platinum mine in Limpopo The high-speed 5G broadband access will enable vehicle remote control, IoT communication, and enterprise digital transformation.

Nkwe Platinum Limited through South Africa Zijin Platinum (Pty) Ltd as its contractor to manage the day to day operations at the Zijin Garatau Platinum Mine will utilise the 5G setup The Zijin Garatau Platinum Mine is located on the Eastern Limb of the Bushveld Complex, about 25 km north-west of Steelpoort and 30 km westnorth-west of Burgersfort in Limpopo Province, South Africa. The life of the mine is estimated to be more than 29 years and once fully operational, will employ some 2 500 people. The parties said the initiative would also help demonstrate how several emerging technologies can be combined with 5G to improve functions across the mine

Mines will benefit as “big-data” is common in mines to capture Geospatial Data, Production Data, Equipment Data, Environmental Data, Safety Data, Energy and Resource Consumption Data and Supply Chain Data is but some of the records kept or needed As mining operations also engage with local communities and stakeholders, this also involves managing data related to community development initiatives, social impact assessments, and communityengagementactivities

It is therefore important to note that the successful implementation of 5G in mining operations requires infrastructure investment, technical expertise, and collaboration among stakeholders. However, the potential benefits in terms of improved ESG performance and profitability make it an attractive proposition for miningcompaniesinSouthernAfrica.

Let us know your views or comments as the conversation continues editor@rdjpublishing.africa

Readings: https://www miningreview com/gold/boom-predicted-in-global5g-adoption-in-mining-sector/ https://www zijinplatinum co za/about-nkwe-platinum-limited/ https://mybroadband co za/news/5g/450816-south-africa-gettingits-first-5g-smart-mine html https://www.itweb.co.za/content/G98YdMLGojZ7X2PD