Page 10 - AfrElec Week 24 2021

AfrElec HYDROGEN AfrElec

South Africa offers “win-win” for hydrogen

SOUTH AFRICA HYDROGEN offers South Africa a “win-win” be 10mn tpy, while chemicals and refining would
for the government’s employment and decarbon- save 1.5mn tpy.
isation goals, as the country can use its wind and Remote- and heavy-duty vehicles would see,
sun resourced to produce low-carbon hydrogen where battery solutions are not viable, a savings
for export and for use in the domestic economy. of 8mn tpy with a 25% shift to hydrogen fuel
A recent study from IHS Markit found cells.
that South Africa was well-placed to pursue a Industrial processes where electrification
national strategy based on low-carbon hydrogen. cannot meet their specific combustion or heat
The study finds that hydrogen production needs would realize a savings of up to 4mn tpy.
could reach 3.8mn tonnes per year by 2050, but The government will have to play a crucial
only with a supportive commercial and pol- role. The study calls for the government to sup-
icy environment. By starting soon, production port grid integration and new rules to allow
could reach 0.75mn tpy by 2030. better wielding of electric power. This would be
By 2050, 2mn tpy would be for domestic con- important to obtain the best synergies between
sumption, equal to 6-8% of final energy demand. hydrogen manufacturing from electrolysis and
Green hydrogen would allow the country to variable (wind and solar) renewable power
decarbonise the economy completely, something generation.
that could not be achieved by coal retirements “The goal of a hydrogen strategy would be
and electrification alone. to underpin the drive for country-wide decar-
As costs for producing green hydrogen drop bonisation, and to support the achievability of
worldwide, South Africa’s resources of wind and a mid-century net-zero target for GHG emis-
sun can be exploited to deliver benefits beyond sions,” said Jesse Scott, international director of
the power sector. Agora Energiewende, a think-tank which com-
They can combine with the country’s indus- missioned the study.
trial expertise and existing investments to create The study comes after the government itself
a new-generation synfuels industry, backed by has launched its Hydrogen South Africa (HySA)
hydrogen electrolysis. strategy.
“Renewables in the power sector with pro- Hydrogen could play an important role in the
gressive coal retirements can directly eliminate South African economy, Mineral Resources and
only 40% to 45% of total South African CO2 Energy Minister Gwede Mantashe said.
emissions,” says the study. The minister said that the government’s
“Gradual adoption of electrification alone HySA strategy aimed to drive forward research,
will not be sufficient. Green hydrogen enables a development and innovation.
push to deeper decarbonisation.” PwC said in October 2020 that South Africa
The “high road” strategy proposed by HIS had the ability to develop a major green hydro-
Markit would create 370,000 additional jobs by gen export industry if it could take advantage of
2050 and reduce CO2 emissions by 70%. its renewable energy potential.
“The conclusion of our work is that these PwC said that that South Africa had world-
goals represent a serious and feasible ambition to class renewable potential that can be leveraged to
deliver the combined economic and decarboni- supply clean energy to the world and transform
sation benefits of low-carbon hydrogen for South the domestic economy.
Africa. A national hydrogen strategy in line with “Traditionally, South Africa has been an net
this ambition will bring planning for hydrogen importer of energy, especially in the liquid fuels
up to speed with and comparable to the way that and gaseous sector – development of the hydro-
some 20 countries and regions around the world gen production sector will be pivotal in cement-
are already approaching this new and exciting ing South Africa’s position as a net exporter of
industrial opportunity,” said IHS Markit’s senior clean energy and major earner of foreign cur-
advisor for Global Energy Andy Barrett, lead rency to our economy, but also to secure clean
author of the study. domestic energy supply that is de-risked from
The study finds that green hydrogen would supply chain disruptions and currency devalua-
be able to reduce emissions in the synthetic fuels tion,” said Le Riche Burger, Africa South Market
industry by 48mn tpy. For steel, the saving would SME for hydrogen in PwC’s strategy division.™

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