The South African government has sent a delegation to Japan to hold discussions with potential investors in the green hydrogen sector. The SA delegation is led by the Minister of Electricity, Dr Kgosietso Ramakgopa. He is accompanied by the Premiers of the Eastern Cape, Western Cape and Northern Cape, the provinces that strategically involved in driving investment promotion in green hydrogen and renewable energy initiatives.
The hydrogen economy is projected to contribute approximately 3.6% to South Africa's GDP by 2050, potentially creating around 370,000 jobs across the value chain. The South African government recognises that green hydrogen can play a significant role in reducing domestic emissions by 10-15%, thus supporting climate change mitigation efforts. The Eastern Cape Provincial Hydrogen Strategy framework study recently completed by Nelson Mandela University (NMU) contends that the EC Province has major extant geographical, institutional and economic advantages – relative to all other Provinces along the coast - to position itself as a major production and export-processing Hub for Green Hydrogen carrier products to major markets both Japan and the EU, as well future domestic consumption.
Whilst Hive Green Ammonia Project represents first mover advantages for the East-ern Cape Province, and Built Africa is a key partner in the project, it is vital to ensure that all major investments demonstrably and optimally provide multiple pathways and opportunities for broad-based black economic empowerment imperatives such Skills Development, Localisation and MSME development during all critical stages of Project development.
A Consortium of Green Hydrogen Knowledge and Skills Development institutions in the EC Province, working closely with HIVE and other renewable energy players, should be established to develop a supportive and enabling human capital ecosystem. The Consortium is likely to sign a Memorandum of Collaboration through the Eastern Cape Provincial Government and Japanese Embassy, to collaborate with Japanese technical and research institutions for local capacity-building and technology beneficiation.
Further work is required to develop a Roadmap for developing a mega-Green Energy Production Coastal Corridor across the Eastern, Western and Northern Cape Provinces, to enable South Africa to compete at scale and cost with the Middle East, North East Africa and Australia in the green hydrogen space.
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