Energy and The Environment

New Study Looks to Eastern Cape For Green Hydrogen Feasibility

By Jessie Taylor

The Eastern Cape has become the new focus of South Africa's green hydrogen plans. The province is at the centre of a feasibility study to assess the potential for the production and export of green hydrogen.

Green hydrogen is produced through electrolysis using renewable energy sources and is a clean and versatile alternative to conventional fossil fuels. Green hydrogen will be in increasingly high demand as countries aim to reduce carbon emissions. The study will be carried out by a consortium led by Nelson Mandela University (NMU) and boutique consultancy firm Ikigai Group.

A Consortium Of Industry Experts

The consortium has won a grant under the South AfricaUK Partnering for Accelerated Climate Transitions (Pact) programme to deliver an innovative feasibility study to explore the viability of green hydrogen production and export infrastructure from the Eastern Cape to global markets, including the UK, Europe and Japan.

The consortium will be working with the Industrial Development Corporation of South Africa (IDC) in support of South Africa’s wider development and just energy transition plans. NMU Vice-Chancellor Professor Sibongile Muthwa said: "South Africa generally, and the Eastern Cape in particular, experience high levels of poverty, inequality and unemployment. South Africa is committed to delivering economic growth through a just transition from, inter alia, dependence on fossil fuel-based energy production."

The consortium comprises several industry leaders and experts in the energy transition from University College London, DNV, National Gas, University of Kent, and the Thames Estuary Growth Board. The feasibility study will evaluate the potential for establishing green hydrogen production facilities in the Eastern Cape and developing the necessary infrastructure for export, including port facilities and transportation networks.

Ikigai co-founder and COO Helena Anderson added that the green hydrogen corridor project is looking at all the "missing links" in hydrogen moving from an inter-regional to an international commodity. “It's focusing on a large-scale green hydrogen project in South Africa, comparing it with ammonia as a counterfactual carrier, and exploring how we can deliver hydrogen to places like Japan, Europe and the UK. The goal is to show that exporting hydrogen can also boost local demand,” Ms Anderson said.

South Africa's Green Hydrogen Future

Last year, Cabinet gave the go ahead to the implementation of the Green Hydrogen Commercialisation Strategy (GHCS). This strategy aims to ensure South Africa becomes a major producer and exporter of green hydrogen. The GHCS gives effect to the Hydrogen South Africa Strategy that was approved by Cabinet in 2007 to prepare the country for a hydrogen economy. The strategy is framed within the Hydrogen Society Roadmap developed by the Department of Science and Innovation and approved by Cabinet in 2021.

Green hydrogen has significant potential for South Africa, but the country will need to firm up a supply position in the next two to three years if it wants to become a global green hydrogen supplier to meet the growing demand.

Most of the 90 million tonnes of hydrogen currently produced in South Africa is grey. This will need to become green and grow by around seven times, allowing green hydrogen to become an essential 7% of the energy mix to reach global green energy targets.

South Africa’s Ministerial advisor and Presidency green hydrogen lead Masopha Moshoeshoe says: “From a South African perspective, we’re very well positioned through our energy resources in terms of both solar radiation and onshore wind, our lengthy coastline and ability to desalinate water for hydrogen production, our proximity to both the European and Asian markets, and having places like the Northern Cape, which are significant land masses."

Green hydrogen holds the potential to combat climate change as well as reshape the world’s energy future. In fact, to reach net zero by 2050, which the world is obliged to do to combat climate change, is likely to be impossible without green hydrogen, South Africa is among the countries that have committed to a net zero target. “Our focus from a country perspective is very much on how we use this transition to a green energy vector to revitalise the economy, to re-industrialise elements that have deindustrialised,” said Mr Moshoeshoe.

According to the World Bank, South Africa has the potential to become a leading producer of green hydrogen and capture a significant share of the global hydrogen market. This will, in turn, generate economic growth and jobs.

The Hydrogen Economy is projected to contribute 3.6% to South Africa's GDP and create 380,000 jobs by 2050.

Source: Mining Weekly | Engineering News | World Bank