South Africa’s Minister of Higher Education, Science and Innovation, Dr Blade Nzimande, has unveiled the much anticipated Hydrogen Social Roadmap (HSRM) which provides the framework for the integration of hydrogen-related technologies in various sectors of the South African economy.
The framework according to the South African government will identify high-level outcomes for a South African hydrogen economy and stimulate economic recovery in line with its Economic Reconstruction and Recovery Plan (ERRP).
South Africa’s Economic Reconstruction and Recovery Plan (ERRP) seeks to reverse the devastating effects of COVID-19 pandemic on its economy and set the country on an economic growth trajectory. The government is hoping to attract investment in its green economy with green hydrogen and renewable energy as one its main priority sectors under the plan.
“The creation of jobs is at the heart of our economic reconstruction and recovery plan,” said Minister Nzimande speaking at the launch of the Hydrogen Social Roadmap (HSRM). “We need to bring back some jobs and create new ones. We want to create an environment that encourages investment, skills development and economic recovery. This roadmap is a critical part of that.”
South Africa’s comparative advantage in the Hydrogen race
The newly launched roadmap by the South African government aligns with the private sector’s plans of establishing a green hydrogen sector. Under the roadmap, South Africa will leverage its significant renewable resources, mineral endowment and capabilities to stimulate local demand for green hydrogen, and build a viable green-hydrogen export market.
In addition to the country’s vast renewable energy resources, South Africa has comparative advantage in that the country is home to 75% of the world reserves of the platinum group metals (PGMs). PGMs are used in hydrogen fuel cells and hydrogen electrolysers, which produce green hydrogen by using an electric current to break water into its component elements of hydrogen and oxygen, with no other by-products.
“The PGMs such as platinum, ruthenium and iridium are key components in fuel cell catalysts and electrolysers for green hydrogen production. In addition, South Africa has a unique and patented Fischer-Tropsch process owned by Sasol, which gives South Africa a competitive edge in the production of liquid fuels based on the hydrogen production route,” said Minister Nzimande.
The Minister added that South Africa has good trading relations with countries that are looking to import green hydrogen. These include the European Union broadly and Germany in particular, Japan, South Korea and China.
According to the recently launched South African Hydrogen Valley Feasibility Study Report, the average cost of green hydrogen will be around USD 4 (EUR 3.5) per kg by 2030 along the Platinum Valley Corridor, representing a green premium of USD2-2.5 per kg above grey hydrogen, produced from natural gas.
The Platinum Valley Corridor starts from Anglo American Platinum’s Mogalakwena Mine in Limpopo, through Pretoria and Johannesburg down to Durban, passing through the N1 and N3.
Nzimande said it is expected that by implementing the catalytic projects identified in the South African Hydrogen Valley Feasibility Study Report, the green premium could be lowered to enable green hydrogen to be at parity with grey hydrogen.
