Driving South Africa's Green Hydrogen Evolution in the Northern CapeRegion

South Africa Embraces Green Hydrogen as an Opportunity for Economic Growth

South Africa, the world's largest producer of platinum group metals (PGMs), is poised to benefit significantly from the growing green hydrogen economy. The country's position as a leading PGM producer creates potential for domestic manufacturing of PGM-containing components, particularly in the burgeoning green hydrogen sector.

The mining industry is undergoing a sustainability transformation, with increasing electrification in mining operations. Green hydrogen, with its potential as a clean energy source, can play a crucial role in this transition.

One technology that is gaining traction is the Liquid Organic Hydrogen Carrier (LOHC) technology, being developed by the German company Hydrogenious. This innovation allows green hydrogen to be transported and stored like conventional liquid fuels, making it a viable option for long-distance transportation and large-scale storage.

The growing global demand for low-carbon solutions and South Africa's natural and mineral resource advantages make the green hydrogen sector a rare convergence of environmental sustainability and economic opportunity. Green hydrogen and its derivatives have numerous direct applications, including mobility solutions, sustainable aviation fuel production, marine bunker fuel for shipping, and industrial feedstock for chemical production.

Green Hydrogen Solutions (GHS) is developing a green hydrogen project at the East London Industrial Development Zone in the Eastern Cape. The project includes a closed-loop system design, desalination of seawater for electrolysis, a 10 MW electrolyser powered by renewable energy, and infrastructure for compression, storage, and delivery.

South Africa has set ambitious targets for green hydrogen production, aiming to deploy 10 GW of electrolysis capacity in the Northern Cape by 2030 and produce 500,000 tonnes of green hydrogen annually. The transition from being primarily a raw materials exporter to becoming a value-added producer of green energy carriers could fundamentally transform South Africa's economic structure and international competitiveness.

The integration of green hydrogen into South Africa's energy and industrial landscape represents not just an environmental imperative but a strategic economic opportunity for the nation's future prosperity. The green hydrogen economy has already created significant job opportunities in developed markets, and South Africa aims to replicate this.

The Northern Cape takes the lead with its exceptional solar and wind resources, standing to become a global hub for clean energy production. Major companies like Walmart and Amazon are already using PEM technology to power forklift trucks, and the green hydrogen sector is benefiting from growing international collaboration.

Platinum group metals, particularly platinum and iridium, serve as essential catalysts in key hydrogen technologies like PEM electrolysers and fuel cells. The Prieska project's focus on green ammonia production highlights another important hydrogen carrier. The project in Gauteng focused on fuel cell and electrolyser component manufacturing.

The Prieska Power Reserve Project and other green hydrogen initiatives represent a significant opportunity for South Africa to leverage its natural advantages and position itself at the forefront of the global energy transition. The Industrial Development Corporation in South Africa, founded in 1940, is likely to play a crucial role in supporting this transition.

Notably, Plug Power, a Nasdaq-listed company, has built the US's largest liquid green hydrogen plant using 40 MW of platinum and iridium-catalysed electrolysers. The US-based Ohmium International has highlighted the economic transformation potential of their Lotus Mark 3 PEM electrolyser system.

In conclusion, South Africa's green hydrogen sector presents a rare opportunity for the country to address its environmental challenges while also driving economic growth and job creation. With its abundant renewable resources, strategic location, and mineral wealth, South Africa is well-positioned to become a global leader in the green hydrogen economy.