Implementation of South Africa’s clean hydrogen ambition

The CDH experts explain that South Africa is positioning itself as a significant player in the global energy transition by leveraging its abundant renewable resources, particularly solar and wind power, to produce clean hydrogen. The pathways, outlined in, amongst others, the South African Hydrogen Commercialisation Strategy, sets ambitious targets such as deploying 10 GW of electrolysis capacity by 2030 and 15 GW by 2040, for South Africa to become a global leader in hydrogen or hydrogen derivate production (both for domestic and international use).

Jackwell and Priscilla say that the initiative marks a significant opportunity for the South African automotive, mining, and energy sectors, highlighting the country's potential in the global hydrogen economy. South Africa's rich endowment of platinum group metals (PGMs) offers a strategic advantage, with PGMs being critical components in hydrogen production and fuel cells.

However, Jackwell and Priscilla explain that despite the potential, funding for early development phases of green hydrogen projects remains a challenge, although development funding institutions provide some grant funding. South Africa's push towards green hydrogen is crucial for its role in global decarbonisation efforts.