By Karabo Marifi
Since the gazetting of nine Strategic Integrated Projects (SIPs) worth R300 billion under the Green Hydrogen National Programme (GHNP), South Africa has witnessed an influx of green hydrogen projects with a capital expenditure (Capex) value of over R800 billion. This marks a major milestone in the country’s journey towards becoming a global leader in clean energy. According to Public Works and Infrastructure Deputy Minister Sihle Zikalala, about 20% of these investments have already reached the bankable feasibility stage, positioning the nation to capitalise on its abundant renewable energy resources and strategic geographic advantages.
Speaking at the Green Hydrogen Devac conference held in Sandton, Johannesburg, on Wednesday, Zikalala highlighted the transformative potential of green hydrogen in South Africa’s economy. He noted that the gazetting of these SIPs by Infrastructure South Africa (ISA), a department under the Ministry of Public Works and Infrastructure, has expedited the development of key projects across various sectors, bringing the country closer to its vision of sustainable growth, job creation, and economic diversification.
The Role of Infrastructure South Africa (ISA) in Accelerating Green Hydrogen Development
The GHNP, formally recognised in 2022 through the gazetting of SIPs by ISA, has become a crucial pillar of South Africa’s clean energy ambitions. These SIPs have been designed to prioritise fast-tracking the approvals and development timelines of green hydrogen projects. ISA has emerged as a pivotal government entity in driving the development of critical infrastructure in the country, with its mandate focused on promoting job creation, reducing poverty, and ensuring sustainable economic growth.
Deputy Minister Zikalala emphasised that the government is fully committed to supporting green hydrogen as a catalyst for long-term development. “By gazetting the GHNP as a Strategic Integrated Project, we have placed these projects on an expedited path to development, with prescribed and shortened timeframes for various project approvals and authorisations,” he said during his address at the conference.
This streamlined process is expected to attract even more private-sector investment and international interest, further strengthening South Africa’s position as a green hydrogen leader on the African continent.
Key Green Hydrogen Projects Under Development
Several large-scale green hydrogen projects have already been identified under the GHNP, each at various stages of development, ranging from prefeasibility to execution. These projects cover a wide array of industries, including manufacturing, renewable energy, green ammonia production, and green steel. Deputy Minister Zikalala outlined some of the most prominent projects driving the green hydrogen agenda in South Africa:
1. Isondo Precious Metals (IPM) Fuel Cell and Electrolyser Manufacturing Facility (Gauteng)
• Based in Johannesburg, this project aims to establish a cutting-edge fuel cell and electrolyser manufacturing plant, a critical component in the green hydrogen value chain. This facility will enhance South Africa’s ability to produce key components for hydrogen energy systems, reducing reliance on imports and creating local jobs.
2. Prieska Energy Cluster Green Ammonia Production Facility (Northern Cape)
• Located in the Northern Cape, this facility will focus on producing green ammonia, a crucial ingredient in green hydrogen production and a clean energy alternative for industries such as agriculture. The Northern Cape, known for its abundant renewable energy resources, is well-positioned to lead the country in green energy projects.
3. Boegoes Bay Green Hydrogen Port Rail and Infrastructure Project (Northern Cape)
• Spearheaded by the Northern Cape provincial government, this ambitious project aims to develop green hydrogen port infrastructure, enabling South Africa to export green hydrogen and its derivatives globally. This project will play a key role in positioning South Africa as a hub for green energy exports, with the potential to boost trade and economic growth.
4. Hive Green Ammonia Export Project (Eastern Cape)
• In the Eastern Cape, the Hive Green Ammonia project is focused on producing ammonia for export, further solidifying South Africa’s place in the global green energy market. The proximity to ports in this region will enable efficient export logistics, enhancing South Africa’s competitiveness.
5. ArcelorMittal Saldanha Green Steel Project (Western Cape)
• A collaboration between ArcelorMittal South Africa and other stakeholders, this project will see the development of a green steel production facility in Saldanha. Green steel, produced using hydrogen rather than carbon-intensive processes, is seen as the future of the global steel industry, making this project a cornerstone of South Africa’s green industrialisation.
6. Sasolburg 60MW Hydrogen Production Facility (Free State)
• Sasol’s green hydrogen production facility in Free State is another key project, with plans to produce green hydrogen at a 60MW scale. This facility will contribute to reducing the country’s carbon footprint and serve as a model for hydrogen production in other provinces.Land and Resources for Green Hydrogen Development
One of the most significant advantages of green hydrogen in South Africa is the minimal land requirement for its production. Deputy Minister Zikalala pointed out that only one percent of the country’s land area would be required to support the green hydrogen economy. Importantly, this land is mostly considered unsuitable for agriculture or human settlements, making it an ideal choice for green energy development.
The efficient use of this land has the potential to unlock massive economic and job creation opportunities. Zikalala highlighted the role of green hydrogen in revitalising underutilised regions, particularly in rural areas, where large-scale projects can bring much-needed investment and infrastructure development.
Green Hydrogen as a Driver of Job Creation and Economic Growth
One of the key objectives of South Africa’s green hydrogen strategy is to stimulate job creation and economic growth. Zikalala noted that the green hydrogen economy could create thousands of jobs, not only in the construction and operation of green hydrogen facilities but also in the associated industries such as manufacturing, transportation, and export logistics.
“We look up to you, the green hydrogen players, to take a lead in facilitating green hydrogen manufacturing capability in a manner that localises the production of upstream and downstream value-added products,” Zikalala urged stakeholders at the Green Hydrogen Devac conference. He emphasised that South Africa’s green hydrogen economy holds the potential to produce between six and 13 million tonnes of green hydrogen and derivatives per year by 2050.
The focus on localisation and creating value-added products is key to ensuring that the benefits of the green hydrogen economy are distributed across the country. This will help reduce inequality, create sustainable jobs, and ensure that South Africa remains competitive in the global green energy market.
Global Interest in South Africa’s Green Hydrogen Potential
South Africa’s green hydrogen projects have attracted significant international interest, with several multinational companies and foreign governments expressing their desire to invest in the country’s burgeoning clean energy sector. The country’s favourable climate for renewable energy, particularly solar and wind, combined with its vast land availability, makes it an ideal location for large-scale green hydrogen production.
The Green Hydrogen National Programme has become a focal point for international investors looking to secure a stake in Africa’s energy future. The projects already underway, combined with future opportunities in sectors such as green shipping, green fertiliser production, and pipeline development, have positioned South Africa as a top destination for clean energy investments.
“South Africa offers substantial additional investment opportunities, including green shipping, green fertiliser production, electrolyser manufacturing, pipeline development, and greenfield port developments,” said Zikalala, extending an invitation to global players to join the country’s green energy revolution.
The Role of the Seventh Administration in Green Hydrogen Development
The South African government has made it clear that green hydrogen is a priority under the seventh administration, which is focused on three key pillars: driving inclusive growth and job creation, reducing poverty and tackling the high cost of living, and building a capable, ethical, and developmental state. The GHNP aligns perfectly with these goals, offering a pathway to sustainable economic development that addresses pressing social and environmental issues.
Zikalala reiterated that the government’s commitment to the green hydrogen economy extends beyond simply facilitating investment. It also involves ensuring that the regulatory environment supports rapid development, while also maintaining high standards of environmental protection and community engagement.
The gazetting of the SIPs under ISA is just one example of how the government is cutting through red tape to ensure that green hydrogen projects are fast-tracked. This commitment to creating a favourable investment environment is expected to unlock further international funding, driving South Africa’s transition to a green economy.
Challenges and Opportunities Ahead
While the GHNP presents significant opportunities for South Africa, there are also challenges that need to be addressed. Infrastructure development, particularly in the transport and export sectors, will be critical to ensuring that green hydrogen can be produced at scale and delivered to global markets. Investment in port facilities, pipelines, and renewable energy infrastructure will be essential for the success of the programme.
Additionally, the development of local skills and expertise in green hydrogen technology is a priority. South Africa will need to invest in education and training to ensure that its workforce is prepared to meet the demands of this rapidly growing sector. Collaborations between government, private sector players, and educational institutions will be key to achieving this.
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