Hydrogen can change South Africa, rest of Africa's economic Fortunes

Compiled by Natasha Odendaal

The Development of an integrated hydrogen economy in South Africa has the potential to unlock significant opportunities along the value chain and set the country apart, attendees heard during Creamer Media’s Hydrogen Economy webinar on October 9.

Facilitated by Impala Platinum (Implats) sustainable development executive Dr Tskakani Mthombeni, panelists unpacked how South Africa can become a major player in the hydrogen economy.

As South Africa develops its hydrogen ambitions, the establishment of safe, reliable energy sector, an extensive hydrogen value chain and a beneficiation environment will deliver vast economic benefits for the country and the winder Southern African Development Community.

Referencing a study that found up to 30% of GDP in any economy is accounted for by energy infrastructure and energy provision, hydrogen-based technologies developer Mitochondria Energy Systems CEO & Founder Mashudu Ramano emphasised how fundamental the sector will be to changing the economic fortunes of the region, noting that a lack of energy infrastructure and poor energy  systems hamper growth.

Hydrogen produces the possibility of not only eliminating energy poverty in Africa but also industrialising, and reducing the need for South Africa to be a consumer of other countries’ productive capability.

Department of Science and Innovation (DSI) director of power Dr Cosmas Chiteme added that, in terms of its industrial and manufacturing capability, as well as natural resource endowment, South Africa ticks all three boxes.

Enabling South Africa to position itself ahead of the pack in the 2007 Hydrogen South Africa Research, Development and Innovation Strategy, which has been a key driver in setting the foundation for the development of the local hydrogen economy with a a healthy portfolio of intellectual property along the hydrogen and fell cell value chain. 

Development Bank of South Africa (DBSA) chief economist Zeph Nhleko pointed to clear opportunities for the country to tap into ‘green industrialisation’ and the need to ensure that South Africa’s critical minerals are leveraged in this regard. It is also important that the mining, construction, engineering and manufacturing sectors, besides others across the value chain, benefit from this process.

Robert Bosch South Africa sales and marketing manager Willem Foord noted that, on a global scale, the company which has reviewed the entire value chain of the hydrogen economy, has accumulatively invested Euro2.5-billion over many year to develop technologies and enable large-scale industrialisation. As a result, Robert Bosch South Africa has launched a substantial portfolio of hydrogen technologies on the market in many different phases of the product life cycle. 

While many challenges and barriers remain in the long-term development of a new hydrogen industry, and much more work needs to be done, South Africa has an ideal opportunity and is well positioned to leverage the potential, said Mthombeni.