South Africa is exploring ways to develop a national hydrogen economy. And for good reason. A new feasibility study, on which we have collaborated, outlines the full potential of establishing a hydrogen valley in the country.
Hydrogen is enjoying unprecedented momentum, with governments around the world setting out their aspirations for the important role they would like it to play in delivering against their broader decarbonisation strategies.
The big question is, how do we ensure that these ambitions manifest themselves into actual projects that are able to deliver on hydrogen’s potential, on the path to net zero.
One country showing promise is South Africa. Courtesy of its world-leading solar and wind resources, and access to the platinum group metals (PGMs) used in electrolysers needed to produce green hydrogen as a fuel, it is primed to capitalise in terms of both hydrogen generation and consumption. As well as making a positive contribution to its own economy, success in this endeavour would also enable the country to position itself as a supplier of green hydrogen globally.
This potential was recently reinforced by a collaboration led by South Africa’s Department of Science and Innovation (DSI), together with Anglo American, the South African National Development Institute (SANEDI), Engie, and Bambili Energy. In March 2021, the group announced a feasibility study as part of the country’s draft hydrogen roadmap.
The study was designed to explore the potential for a hydrogen valley to be developed in the Bushveld geological area and wider region, as well as to identify tangible project opportunities centred around potential hydrogen hubs.
The findings of the feasibility study were shared on Friday, 8 October – International Hydrogen Day – during a dedicated virtual event. Please click here to access the full report.
Natascha Viljoen, CEO of Anglo American’s PGMs business, said: “The opportunity to create new engines of economic activity through hydrogen has been validated through this feasibility study with our partners. As a leading producer of platinum group metals (PGMs), we have for some years been working towards establishing the right ecosystem to successfully develop, scale-up and deploy hydrogen-fuelled solutions. These include investing in innovative ventures and enabling technologies, as well as forging wide-ranging collaborations across industry, to fully harness the transformative potential of green hydrogen for our economy in South Africa.”
The study identifies three hubs with a fundamental role to play in integrating hydrogen into South Africa’s economy, and in establishing the country as a strategically important centre for green hydrogen production. They include Johannesburg, extending to Rustenburg and Pretoria; Durban, encompassing the city itself and Richards Bay; and Limpopo province centred around Anglo American’s Mogalakwena PGMs mine.
Nine key pilot projects have also been identified across these hubs and are recommended to be prioritised by developers. They span the transport, industrial and construction sectors.
According to the report, establishing a hydrogen valley could add more than $3.9bn to South Africa’s GDP by 2050, while creating in excess of 14,000 jobs per year, spanning the entire hydrogen value chain, from research and development, engineering and maintenance, to training and outreach – across sourcing, production, transportation, storage and applications such as fuel cell manufacturing.
Anglo American has taken an active role in supporting the advancement of hydrogen solutions in key industries. Our industry-leading Market Development team is at the forefront of these efforts and, through a holistic ecosystem of programmes and workstreams, is working to catalyse and mature PGM-relevant innovations that address key global issues such as decarbonisation and the clean energy transition.
