Page 32 - Energize February 2022

VIEWS AND OPINION

A report commissioned by the EU But this would require a 130 GW fleet of renewables - more than three times the installed
Delegation to South Africa from the Council capacity of power utility Eskom - along with a 60 GW electrolyser fleet which would consume
for Scientific and Industrial Research (CSIR) 57 Giga litres of mostly desalinated water yearly.
in 2020, showed that South Africa could “A nationally coordinated approach and enabling regulatory environment is critical to
generate power fuels based on renewable enable speed, capacity and capability to deliver,” he said. “Competitive localisation of the value
hydrogen and export them to North- chain and access to innovative green finance solutions are key enablers for success.”
West Europe and the Far East, at costs There have been several reports released in 2021 on the expected boost to South Africa’s
competitive with other renewable-rich economy if the country establishes itself as a global leader in the production of green hydrogen
countries. and derivative carbon-neutral fuels and chemicals.
The ports of Saldanha Bay and Ngqura Anglo American, Bambili Energy and French multinational Engie collaborated with the
were well placed for these exports, that Department of Science and Innovation and the SA National Energy Development Institute on
study found. one such study, which was released in October.
A follow-up study released at the It concluded that creating a hydrogen economy could add between $3,9-billion and
webinar showed that green hydrogen $8,8-billion to South Africa’s gross domestic product by 2050 and create between 14 000 and
could also be produced competitively at 30 000 jobs each year.
both ports, which were also ideally located Jobs growth would be across the whole hydrogen value chain, including water resource
to supply domestic off-takers in ‘hard-to- management, electrolyser development and transport - including the pipeline and trucking
abate’ sectors. industries, storage and fuel cell manufacturing, the study showed.
The term refers to heavy industry for Engie Africa Power and Gas senior hydrogen solutions developer Koen Langie said in
which the energy transition is difficult February that South Africa’s domestic market for green hydrogen could be worth $10-billion
- such as the manufacturing of cement, a year, underpinned by demand from the mining and minerals, steel, transport and
steel, chemicals and plastics, as well as petrochemicals sectors.
heavy-duty transport such as road trucking, But he indicated that the export potential could be more than $100-billion, due to the role
container shipping and aviation. that countries like South Africa could play in delivering low-priced green hydrogen to markets
The potential off-takers identified by in Europe and Asia.
the study included ArcelorMittal South On 15 December 2021, Hive Hydrogen, Built Africa and Linde plc, through its wholly-owned
Africa’s mothballed Saldanha steel works, South African subsidiary Afrox, announced plans for a 780 000 tonnes per year, $4,6-billion
which would require 104 000 tonnes of green ammonia export plant at the Coega special economic zone (SEZ) alongside the Port of
hydrogen per year to produce 1,5-million Ngqura in Nelson Mandela Bay, with full operation set to start by the end of 2026.
tonnes of hot briquetted iron per year. “I think we all agree that there are incredible opportunities, and the potential is great, for
Ammonia derived from green hydrogen green hydrogen here in South Africa”, said Roberto Cecutti, head of the Trade and Economic
could also be used as marine bunker fuel Section of the EU Delegation to South Africa.
at the ports of Saldanha Bay, Cape Town, “The conditions are there in terms of technology, and there is opportunity in terms of
Gqeberha and Ngqura, which the study creating value chains. But of course, these opportunities can be unlocked only if you have the
predicted would have a combined annual right conditions and enabling environment.”
demand of about 740 000 tonnes. This would have to include an industrial policy with the right incentives, regulations and
The CSIR study did not analyse the standards, a stable investment framework and coordination between the public and private
prospects for a greenfield special economic sectors, he concluded. The CSIR report here demonstrates how green hydrogen can breathe
zone being proposed, to explore the new life into Saldanha Bay and Ngqura.
potential of Boegoebaai in the Northern
Cape as an export hub for green hydrogen Send your comments to rogerl@nowmedia.co.za
and ammonia.
Integrated chemicals and energy
company Sasol has signed a memorandum
of agreement with the Northern Cape
Economic Development, Trade and
Promotion Agency, to lead the feasibility
study for Boegoebaai, which is expected to
take two years to complete.
Boston Consulting Group’s Kesh Mudlay
said at the webinar that South Africa
had the solar, wind and land resources
to produce more than six million tons of
green hydrogen yearly by 2050, split almost
evenly between exports and domestic use.

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