Page 8 - AfrElec Week 40 2022

AfrElec HYDROGEN AfrElec

Southern Africa well-placed to

become green hydrogen hub

AFRICA SOUTHERN Africa has potential to become a region’s demand is projected to be lower than
global green hydrogen production and export the demand centers in Europe and Asia,” Chica-
hub as it has ideal conditions for its production, go-based Kearney said in a report, Green hydro-
a leading management consultancy has said. gen: southern Africa’s time is now.
Kearney partner Prashaen Reddy told South “For example, South Africa, the region’s most
African publication Mining Weekly in an inter- industrialised country, is projected to reach
view published on Monday (October 3) that the a demand of only 238 kt by 2030, according
region has favourable conditions to produce to South Africa’s national road map. With the
renewable energy, low demand and would be region’s relatively low demand, the favorable pro-
able to store and export it to areas where the duction climate, and the limited impact of trans-
energy type is technically or economically port costs, southern Africa is poised to become a
limited. green hydrogen export hub.”
“The world’s steadily growing demand for Reddy, however, spelt out five factors that,
hydrogen is expected to exceed supply by 2030, if addressed, can drive southern Africa’s green
making now an ideal time to invest,” Reddy said. hydrogen potential to reality: The industry must
“Although Southern Africa has a major gain government support in establishing a con-
opportunity to produce green hydrogen, the ducive regulatory environment, participants
region’s demand is projected to be lower than the should establish public-private partnerships to
demand centres in Europe and Asia. For exam- de-risk the projects, overcome infrastructure
ple, South Africa, the region’s most industrialised barriers, secure adequate funding as well as
country, is projected to reach a demand of only secure off-takers.
238,000 tonnes by 2030.” Governments set policies that impact both
Germany recently pledged $39mn to the speed and the direction of the energy transi-
Namibia for green hydrogen development. tion and they create the regulatory environment
Three EU countries have already expressed that supports the development of production
interest in importing Namibian green hydrogen. facilities and the attractiveness of the location
There is also interest in South Africa’s potential for investors, he told Mining Weekly.
to produce green hydrogen. Global chemicals “As with any major project, significant
firm Sasol is entering into an agreement with the amenities are required. Sizable green hydrogen
Northern Cape Development Agency to conduct projects, such as some announced gigascale pro-
a feasibility study for green hydrogen production jects, also require vast areas of land to produce
in South Africa’s Northern Cape Province. renewable power,” he said.™
“Although southern Africa has a major
opportunity to produce green hydrogen, the

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