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Ramaphosa: By 2050, green hydrogen could create up to 4 million jobs in Africa
Ramaphosa: By 2050, green hydrogen could create up to 4 million jobs in Africa

IOL News

time13-06-2025

  • Business
  • IOL News

Ramaphosa: By 2050, green hydrogen could create up to 4 million jobs in Africa

President Ramaphosa envisions Africa producing up to 60 million tons of green hydrogen by 2050, creating millions of jobs and driving industrial transformation across the continent. President Cyril Ramaphosa says by 2050, green hydrogen production in Africa could reach between 30 and 60 million tons, creating two to four million new jobs across member states of the Africa Green Hydrogen Alliance. Speaking at the inaugural Africa Green Hydrogen Summit on Thursday, Ramaphosa outlined a bold continental vision for harnessing green hydrogen as a driver of industrial transformation, clean energy, and economic development. 'This summit provides a platform for our shared continental ambitions,' he said, highlighting the evolution of the event from a South African initiative in 2022 to a forum now uniting Africa's green hydrogen ecosystem. Africa, he noted, is 'perfectly placed to leverage the global shift towards cleaner energy sources for our collective advantage,' with abundant solar, wind, and hydropower resources, and vast tracts of land suited for renewable energy projects. Ramaphosa called green hydrogen a tool to 'marry Africa's mineral riches with our renewable energy endowment to decarbonise heavy industries, to create jobs, to stimulate investment and to unlock inclusive growth across borders.' The Africa Green Hydrogen Alliance, which includes South Africa, Egypt, Kenya, Mauritania, Morocco, and Namibia, has already seen over 52 large-scale projects announced—among them, the Coega Green Ammonia Project in South Africa, AMAN in Mauritania, and Project Nour in Morocco, he said.

Ramaphosa extols green hydrogen as future driver of Africa-wide growth
Ramaphosa extols green hydrogen as future driver of Africa-wide growth

Daily Maverick

time12-06-2025

  • Business
  • Daily Maverick

Ramaphosa extols green hydrogen as future driver of Africa-wide growth

President Ramaphosa on Thursday championed green hydrogen as Africa's future, but can the continent's ambitious dream overcome the reality of prohibitive costs and a risk-averse international financial regimen? 'Africa is uniquely positioned to become a major player in green hydrogen because it has abundant renewable resources that manifest themselves in high solar irradiation, strong winds and hydropower potential,' said President Cyril Ramaphosa. He was speaking at what was once called the South Africa Green Hydrogen Summit, now positioned as the Africa Green Hydrogen Summit, in Cape Town on Thursday. 'The vast land of our continent lends itself to large-scale renewable energy projects. We are therefore perfectly placed to leverage the global shift towards cleaner energy sources for our collective advantage as the entire continent. 'Green hydrogen is a way to marry our continent's mineral riches with our renewable energy endowments to decarbonise particularly heavy industries, to create jobs, to stimulate investment and to unlock inclusive growth across the various borders,' said Ramaphosa. Green hydrogen is produced by using renewable energy sources such as wind or solar power to split water into hydrogen and oxygen through a process called electrolysis. This hydrogen can then be used as an emission-free energy source and carrier for applications such as fuel cells or industrial processes, and is seen as being key to decarbonising 'hard-to-abate' or 'hard-to-electrify' sectors such as long-haul transport, chemicals, and iron and steel. Green hydrogen is of particular interest in South Africa because of the country's strategic advantages. The independent non-profit economic research institution Trade & Industrial Policy Strategies says that 'South Africa's rich endowment of ideal weather conditions for solar and wind-power generation, technological capabilities around the Fischer-Tropsch process, and access to platinum resources place the country at an advantage for developing the hydrogen value chain and being a key supplier into the global hydrogen market.' Ramaphosa noted that more than 52 large-scale green hydrogen projects had been launched across the continent, including in South Africa. 'To date, South Africa has invested more than R1.5-billion in our Hydrogen South Africa programme,' he said. Yet despite the President's bullishness, the reality of green hydrogen projects in South Africa and beyond paints a more complex picture. Daily Maverick reported in April that Namibia's HyIron Oshivela plant successfully produced green hydrogen for the first time, giving South Africa's neighbour to the northwest the lead in its implementation of its green hydrogen-related plans. South Africa's Hydrogen Society Roadmap, adopted in 2021, outlines an ambitious vision. While the initiative — which includes plans for a Hydrogen Valley industrial cluster and the Boegoebaai project in the Northern Cape — is substantial on paper, its implementation has lagged significantly behind Namibia's. Pilot project A pilot project in Sasolburg is producing green hydrogen for domestic use, and the Koega green ammonia project in the Eastern Cape is 'at an advanced planning stage' for four additional flagship hydrogen projects, said Ramaphosa on Thursday. Beyond suboptimal implementation, there are also complications, which Ramaphosa duly acknowledged. Chief among them: cost. 'We are very much alive to the reality that green hydrogen production faces a number of challenges. There is the cost factor. Capital intensity and the high costs of financing are significant barriers, as is the cost of green hydrogen relative to other energy sources such as natural gas, for instance,' he said. Earlier this year, Daily Maverick was told that the ambitious plan to produce 'green steel' in the Freeport Saldanha industrial zone had been shelved, with Sasol and ArcelorMittal citing high costs and shifting priorities. Globally, the steel industry is responsible for roughly 2.6 billion tonnes of carbon dioxide emissions a year, which is about 8% of global emissions. When the conventional coal-fired blast furnaces are replaced with ones that run on carbon emission-free green hydrogen, the steel that is produced is, accordingly, considered green steel. The difficulties in realising green hydrogen projects are shared internationally. A study published in the journal Nature Energy earlier this year, which tracked 190 projects over three years, found that by 2023 only 7% of the announced green hydrogen production globally had been realised. A large part of the reason is renewable energy and electrolyser costs. Lack of competitiveness A Potsdam Institute for Climate Impact Research researcher and the lead author of that study, Adrian Odenweller, as well as co-author Falko Ueckerdt, said: 'Green hydrogen will continue to have difficulties meeting the high expectations in the future due to a lack of competitiveness.' The Just Energy Transition Project Management Unit in the Presidency and the Industrial Development Corporation of South Africa previously confirmed as much with Daily Maverick, explaining: 'Currently, grey hydrogen (from steam reformation of methane gas) costs $1.50/kg to produce. Green hydrogen produced via electrolysis of water using renewables-generated electricity costs $5 to $6/kg. Approximately 60% of this cost is for electricity, 30% for electrolysers and 10% for transport, storage and other externalities. 'So, a reduction in price depends very much on renewable electricity generating costs falling still further. Additionally, the appropriate pricing of carbon taxes is another factor that will contribute to project viability. 'The costs of green electricity and of electrolysers will reduce, but not overnight. Furthermore, penalties in key global markets on goods produced using non-green technologies are ramping up over the next decade. We can anticipate that the right price point will be reached within the next few years. 'Based on the downward price trajectory of renewable energy and electrolyser costs, it has been projected that South Africa will reach $1.50/kg by 2037.' Speaking at the summit on Thursday, Energy and Electricity Minister Dr Kgosientsho Ramokgopa said, 'Africa's choice is whether to be a passive site of resource extraction or a proactive architect of the green energy economy. 'With the right policy framework, investment enablers and regional coordination, green hydrogen can and must be [the] backbone of a new African industrial era. 'South Africa's approach to green hydrogen is not aspirational, it is deliberate, structured and already under way. As a country, we have a clear choice to develop hydrogen not just as a climate response but as a catalyst for reindustrialisation, economic transformation, regional competitiveness and energy sovereignty,' said Ramokgopa. DM

SA's green hydrogen initiatives gain momentum with R650 million development funding
SA's green hydrogen initiatives gain momentum with R650 million development funding

IOL News

time12-06-2025

  • Business
  • IOL News

SA's green hydrogen initiatives gain momentum with R650 million development funding

Minister for Electricity and Energy, Kgosientso Ramokgopa, acknowledged the capital-intensive nature and commercially untested at scale of this emerging sector, particularly at early stages. Image: GCIS South Africa's plans to accelerate the development of green hydrogen have received a major boost with several initiatives announced on Thurdsay, highlighting the country's commitment to renewable energy. The Public Investment Corporation (PIC), the Industrial Development Corporation of South Africa (IDC), and the Development Bank of Southern Africa (DBSA) have collectively invested R656 million into the South African Hydrogen Fund (SA-H2), also known as CI3 South Africa. This fund is pivotal in advancing the country's just energy transition (JET) and reinforcing its status as a global leader in green hydrogen. As part of this intensification of green energy initiatives, the IDC has joined forces with Germany's KfW Development Bank to provide grant funding for Mahlako, a 100% women-owned firm focused on developmental infrastructure projects, and CENEC (Central Energy Corporation), based in Bloemfontein. This partnership aims to expedite the development of the Prieska Power Reserve (PPR), a project that has successfully navigated a rigorous due diligence process this year. To date, the IDC has received a significant number of funding applications for green hydrogen projects and the PPR was among the first to have undergone a rigorous due diligence process. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading The announcements coincide with the inaugural Africa Green Hydrogen Summit in Cape Town where President Cyril Ramaphosa and Minister for Electricity and Energy, Kgosientso Ramokgopa, outlined the government's efforts to mobilise blended finance within the hydrogen sector. Ramaphosa said green hydrogen was a way to marry Africa's mineral riches with renewable energy endowment to decarbonise heavy industries, to create jobs, to stimulate investment and to unlock inclusive growth across borders. "The growing global demand for clean hydrogen as countries decarbonise their industries, transport, and energy systems presents unlimited opportunities for our continent," he said. "As demand for green hydrogen grows, so does demand for platinum group metals, sustaining and expanding our continent's mining and refining industries." Ramokgopa acknowledged the capital-intensive nature and commercially untested at scale of this emerging sector, particularly at early stages. "The Department of Electricity and Energy, working with National Treasury, the IDC and the DBSA, is advancing instruments to de-risk early projects through concessional capital, credit enhancements instruments, and project preparation facilities," Ramokgopa said. In a significant showcase of its ambitions, SA-H2 announced its first investment of $20m for the Hive Hydrogen Coega Green Ammonia Project in the Eastern Cape, which is set to revolutionise green ammonia production in the country. The plant aims to generate approximately 1 million tons of green ammonia annually, facilitating the avoidance of 2.6 million tons of carbon emissions each year and creating more than 20 000 jobs during its construction and operational phases. The IDC's recent statement elaborated on the scope of the Development Funding Agreement, detailing support for engineering, procurement, construction selection, front-end engineering and design, and environmental and social impact assessments. This crucial investment paves the way for financial close by mid-2026, with commercial operations anticipated to commence by 2029. 'Green hydrogen economy will not only create jobs but help boost South Africa's energy security in the long-term,' said Rian Coetzee, the IDC's acting divisional executive for industry development and planning. 'To this effect, there has been a significant ramp-up of greenhydrogen projects in the country over the past three years and these have attracted the attention of international funding entities that are keen to accelerate development of the local Green Hydrogen economy.' SA-H2 will be managed through a partnership that includes Climate Fund Managers B.V. (CFM) and Invest International (II), a Dutch development finance institution. The project sites for PPR, which encompass around 1 900 hectares, are strategically located to facilitate renewable energy generation and green ammonia chemical processing in collaboration with the Siyathemba Local Municipality. The Department of Electricity and Energy also used the event to formally launch the South African Renewable Energy Masterplan (SAREM), a Cabinet-approved, sector-wide industrial strategy that anchors energy transition in local manufacturing, value addition, and job creation. 'SAREM is not just a roadmap for expanding renewable energy generation; it is a blueprint for how to industrialise through energy,' Ramokgopa said. 'Developed through a rigorous social compacting process between government, industry, labour, and civil society, it sets clear targets for localisation, supplier development, skills transfer, and green economy investment attraction.' The Masterplan aims to leverage South Africa's growing renewable energy demand, including for green hydrogen, to stimulate upstream and downstream industrial development across solar PV, wind, battery storage, electrolysers, and fuel cell technologies. BUSINESS REPORT Visit:

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