Feasibility study completed for hydrogen valley in South Africa

The South African government and private-sector partners on Friday released a feasibility study report as a step towards the creation of a hydrogen valley in South Africa.

The South African government’s Department of Science and innovation (DSI) worked together with South African mining giant Anglo American Platinum (JSE:AMS), local fuel cell company Bambili Energy and French energy group Engie SA (EPA:ENGI) to complete the Hydrogen Valley Feasibility Study Report.

The planned hydrogen valley will start near Mokopane in Limpopo, where platinum group metals are mined, cover the industrial and commercial corridor to Johannesburg and end at Durban. Based on the potential for hydrogen demand and production, including access to sun and wind energy, three hubs have been identified in this region -- Johannesburg, Durban/Richards Bay, and Mogalakwena/Limpopo -- which will host pilot projects. The study outlines nine pilot projects across the mobility, industrial and buildings sectors that could kickstart the hydrogen valley. One of these, for instance, is to convert heavy-duty diesel-powered trucks to fuel cell-powered trucks.

The study estimates that by 2030, levelised cost of green hydrogen will be around USD 4 (EUR 3.5) per kg across the hubs, representing a green premium of USD 2-2.5 above grey hydrogen. It also recommends policy and regulatory enablers.

The proposed hydrogen valley supports South Africa’s National Hydrogen Society Roadmap and Economic Reconstruction and Recovery Plan.

According to DSI director-general Phil Mjwara, is “[...] an opportunity that has great potential to unlock growth, revitalise the industrial sector, and position South Africa to be an exporter of cost-effective green hydrogen to the world.”

Hydrogen could reduce South Africa's dependence on fossil fuels and imported oil.

(USD 1 = EUR 0.864)

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