Green Hydrogen & Green Energy Transition
Something remarkable is happening in South Africa. This was evident at the Netherlands-Denmark-South Africa Business Forum in Tshwane, which focused on Green Energy Transition and Green Hydrogen Partnerships for Impact. The event highlighted the progress being made, reflected in policies such as the Hydrogen Society Roadmap and the Green Hydrogen Commercialisation Strategy, as well as ongoing and planned investments under the Just Energy Transition Investment Plan (JET IP) and by private industries.
Several partnerships were announced at the forum, including the launch of a $1 billion Green Hydrogen Fund. These developments signal increasing confidence and establish South Africa as a preferred investment destination for green hydrogen industry development. South Africa possesses the essential elements to nurture a thriving green hydrogen ecosystem. The potential to decarbonise hard-to-abate industries, such as steel, long-haul freight, and aviation, is significant, along with the promise of increased export income as the industry matures.
However, scaling green hydrogen as a viable energy solution will take time. To capitalise on the current momentum, it is crucial to accelerate the rollout of renewable energy, prioritising meeting the economy’s and society’s energy needs before powering this promising industry’s production processes.
Given that the production of green hydrogen requires pure water, careful water resource planning is essential in our water-stressed country. It is vital to ensure that the basic needs of the population and the requirements of other economic sectors are met. Investing in large-scale water recycling and innovative wastewater and acid mine drainage treatment technologies is necessary.
Green hydrogen, produced through water electrolysis using renewable energy, is the only type of hydrogen considered climate-friendly for achieving net-zero emissions. It also offers opportunities to catalyse local supply chains, develop skills, and create new types of jobs.
In a country facing high levels of inequality, poverty, and unemployment, ensuring that the green hydrogen economy becomes an inclusive industry is imperative. This means engaging South Africans across all stakeholder groups from the outset and involving them as co-creators of the social, economic, and environmental outcomes that will benefit all people and the planet.