5 minute read
Public Sector Leaders | March 2023
Limpopo
More than R1.5-trillion is expected to be invested into the renewable energy sector over the next five years through the government’s Just Energy Transition Investment Plan. Among the investments will be the unlocking of key green hydrogen routes, which will see significant economic growth in the Limpopo province.
Supporting the Transition to Renewable Energy
The Hydrogen Valley initiative, raised by President Cyril Ramaphosa in his State of the Nation Address, looks to partner with the private sector to transition to renewable energy options in the transport and mining sectors.
The Hydrogen valley will stretch from the mineral-rich bushveld area of Limpopo, through the country’s industrial centre and to the busy ports of Durban and Richards Bay. Starting in Mokopane – where platinum group metals are mined – the valley will stretch approximately 835 kilometres. It is likely to bring significant employment and investment opportunities to the province while reducing the mining and transport sectors’ dependence on coal.
The concept is being driven by a collaboration between the Department of Science and Innovation (DSI), the South African National Energy Development Institute (SANEDI), Anglo American, Bambili Energy and ENGIE. It is envisaged as a means of kickstarting the hydrogen industry in South Africa.
The Hydrogen Valley Initiative will see the establishment of several green hydrogen hubs, in partnership with the private sector, in Limpopo, Gauteng and KwaZulu-Natal.
The Mogalakwena and Limpopo hub will encourage the use of green hydrogen in the mining industry, starting with using it in the fuel of mining trucks.
The corridor’s focus will include switching heavy-duty diesel trucks to heavy-duty fuel cell trucks. The aim is to encourage the transport sector to be fuelled by hydrogen.
The initiation is expected to contribute between R50-billion and R131-billion to the country’s GDP by 2050. Between 14 000 to 30 000 jobs could be created every year.
The Hydrogen Valley project in South Africa has the potential to boost the country’s economy significantly. A feasibility study showed that the project could add anywhere between R70-billion to R160-billion to South Africa’s GDP.
The plan to increase the demand for hydrogen could see the planned hubs increasing production by 80% to 185 000 tons by 2030.
Building a Workforce to Support the Move to Renewables
The plans for the Hydrogen Valley have been in the pipeline for several years, and the initiative will form a key part of the Economic Reconstruction and Recovery Plan. The government has released the Hydrogen Society Roadmap, which acts as a framework for driving economic recovery by using hydrogen technologies. It sets out the government’s plans for the industry over the next decade.
The roadmap shows the government’s ongoing support of research, development and innovation in the green hydrogen sector.
Part of supporting this industry is developing the skills necessary to drive its growth, which has been driven by the Hydrogen South Africa programme and other bursary schemes, including from the National Research Foundation. Last year, Cabinet approved the continued support of the Hydrogen South Africa programme for another ten years after an initial 15 years.
Studies have also been commissioned to look into how Technical and Vocational Education and Training (TVET) colleges can support skills development for the hydrogen economy, and short courses have already been developed to train unemployed TVET graduates in the installation, operation and maintenance of hydrogen and fuel cells.
Under the roadmap, a Just Energy Transition Centre is to be established with the aim of reskilling workers to participate in renewable energy industries such as hydrogen. With the right investment, South Africa has the potential to be a global leader in the hydrogen market. The country has significant natural renewable resources and mineral reserves that can support the demand for green hydrogen. Increasing the demand for hydrogen locally, as well as seeking out export markets, will help support the economic growth and job creation that the sector promises.
The Hydrogen Valley initiative is just one of the new frontiers the government is championing under the Just Energy Transition Investment Plan. Several projects are already underway, including the development of a new facility by Sasol at Boegoebaai in the Northern Cape and the Prieska Power Reserve in the Free State.
What is Green Hydrogen?
Green hydrogen is a zeroemissions fuel produced through electrolysis. The process uses renewably generated electricity (such as solar or wind) that splits water into hydrogen and oxygen.
Green hydrogen holds significant promise to help meet global energy demand while contributing to climate action goals by providing sectors such as mining, transport, manufacturing and electricity generation with a renewable energy option.
The potential use and demand for hydrogen are increasing, with more sectors looking at green options amid falling renewable energy prices and the growing commercial viability of green hydrogen production.
Sources:WorldBank|BusinessTech|SAGov|News24|SouthAfricanBusiness
