NATIONAL NEWS - South Africa is looking to green hydrogen and other emerging industries to help drive its next phase of industrial development, Trade, Industry and Competition Minister Parks Tau says.
Speaking at the Africa Green Hydrogen Summit in Cape Town on Tuesday, 15 September, Tau said green hydrogen should be viewed as part of a much broader industrialisation agenda aimed at positioning South Africa as a producer of higher-value goods and products.
Green industries to drive reindustrialisation
Tau identified green hydrogen alongside sustainable aviation fuel, green chemicals, green shipping fuels, advanced manufacturing and new export industries as key opportunities for South Africa's economic future.
“These are the opportunities that matter. These are the industries that will determine South Africa's competitiveness in the decades ahead,” he said.
Tau said South Africa needed to move beyond exporting raw resources and instead focus on developing industries that create greater value locally.
“Our ambition is clear. We must export more value and less raw potential. We must move up the value chain. We must become producers, not merely providers of resources,” he said.
Billions being mobilised for green hydrogen
Government has identified 24 strategic integrated projects through the Just Energy Transition Investment Plan (JET-IP) programme management office at the Industrial Development Corporation.
Several of these projects have already reached the pre-feasibility stage and are backed by €40 million from Germany’s KfW Development Bank.
Tau also highlighted progress with the South Africa Green Hydrogen Fund, with Climate Fund Managers closing the first R3 billion of the fund in August.
The fund is anchored by the European Commission through its Global Gateway commitment secured with the European Union at last year’s G20.
A further R628 million in grants has also been made available through the Global Gateway initiative.
According to Tau, R490 million will be used to leverage investment in hydrogen infrastructure, with the potential to mobilise a further R10 billion, while R138 million will support Transnet in greening its operations.
Thousands of jobs expected
Tau said South Africa’s industrial transition pathways could generate tens of thousands of additional jobs and billions of rand in economic activity in the years ahead.
He also stressed the importance of cooperation between African countries as the continent develops its green hydrogen economy.
“Through platforms such as the Africa Green Hydrogen Alliance, we are strengthening cooperation across the continent, because no single African country will build this economy alone,” Tau said.
He said collaboration could help African countries achieve the scale needed to compete in global markets.
Coega green ammonia project gets support
A key project receiving government support is the Coega Green Ammonia Project, being developed by Hive Hydrogen.
Through the Critical Infrastructure Programme Fund, the Department of Trade, Industry and Competition (the dtic) is supporting the project, which Tau described as South Africa’s “lighthouse” green hydrogen project.
The project is expected to contribute to economic activity in the region while supporting the country’s broader industrial development and decarbonisation objectives.
Tau said Hive Hydrogen had completed its financial due diligence, unlocking R12.5 million of R25 million in project development funding.
A further R25 million funding application is expected to be submitted at financial close.
“This funding announcement today is particularly significant as it practically puts in motion the Decarbonisation pillar of our Industrial Development Strategy,” Tau said.
Building a higher-value economy
The government’s green hydrogen strategy forms part of a wider effort to develop new industries, attract investment and create opportunities across the value chain.
For South Africa, the emerging green economy offers the potential to link the country’s renewable energy resources with manufacturing, infrastructure, exports and job creation.
Tau said regional cooperation would be essential to unlocking that potential and establishing Africa as a significant participant in the global green economy. – SAnews.gov.za
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