Page 5 - TWIMS Posters 2023

GREEN MANUFACTURING What is green Hydrogen? Green hydrogen in the transport sector

IN SOUTH AFRICA: Hydrogen has been described as ‘the fuel of the Several countries have touted green hydrogen as a The potential for surplus renewable energy generation to produce hydrogen in South Africa is illustrated
in Figure 2. For renewable energy to meet South African electricity demand there will be inevitable
future’, always promising results that somehow vital component of their decarbonization strategies
surpluses during off peak hours as well as when wind and solar electricity generation operate at the same
seem just out of reach. Now it looks like the future is and post-fossil-fuels-based economies. This is
time. This surplus electricity generation would otherwise be curtailed. The figure shows a significant
on the horizon.
because, the byproducts of hydrogen through
South Africa is not only well positioned to adopt the combustion or electrochemical reaction are, simply, opportunity for renewable energy based green hydrogen production that would otherwise be wasted.
heat and water. Green hydrogen, then, is hydrogen
HOW GREEN HYDROGEN IS provide much needed employment opportunities, that has been produced using renewable energies 50 GW Solar PV
manufacture of green hydrogen, but this could
Source: Enertrag (2021); based on Eskom and CSIR data
through a process of electrolysis (see Figure 1).
energy generation, balance of payment inflows and
Wind
a host of other economic benefits.
Figure 1: Types of hydrogen according to 40 Residual Load — Electricity Load
30
Hydrogen is the most abundant element in the production methods 20 South African 80GW
CHANGING THE ENERGY becoming increasingly attractive as an alternative Not Environmentally Friendly Environmentally Friendly -10 demand 100 GW
universe with a high energy density, and is
domestic electricity
10
0
to fossil fuels. Hydrogen is a compelling form of
Grey H
Brown H
Blue H
GreenH
energy for transportation and storage that could
2
(High load factor
unlock greater potential for other forms of 2 2 2 2 -20 H production Ely: 45 GW
for electrolyser)
-30
LANDSCAPE hydrogen provides a crucial solution to the Fossil fuels Source Fossil fuels Renewable energy -40 Direct-Electricity
renewable electricity generation. For example,
-50
Source
Source
Source
challenges of intermittent supply and demand
Heat Production
-60
Coal
peaks associated with wind, solar and hydro
Process
Process
electricity generation. To this effect, hydrogen Steam-Methane Process Grey H or Brown H Process -70 Curtailment
-80
2
2
offers a viable means of storing energy which can Reforming Coal gasification + Carbon Capture Storage Electrolysis -90
then be converted to electricity. (CCSS) -100
Source: Prepared by TWIMS Mon Tue Wed Thu Fri Sat Sun
Why Now? Green hydrogen has been targeted as a viable energy source for the transport sector, especially in sectors
where CO abatement is difficult (Metcalfe, Burger, & Mackay, 2020). For heavy-duty and long-range
2
transport applications hydrogen powered vehicles are expected to become more cost effective than
battery electric vehicles in the short term (Hydrogen Council, 2020). Table 2 shows the expected timeframe
AUTHOR: Patel (2020) notes that the recent interest in hydrogen significant opportunity for countries with high levels for various road-based hydrogen powered vehicles to reach total cost of ownership parity with internal
combustion engine and battery electric alternatives. It is important to note that the total cost of ownership
has been driven by a strong global emphasis on of renewable energy potential such as South Africa
emissions reduction and hydrogen’s ability to meet to become major exporters of green hydrogen. refers to both purchasing and lifecycle running costs. Longer time frames (indicated by shades of red)
suggest less suitability for hydrogen power as battery electric alternatives will become more established.
key government policy objectives such as: Forbes has described this green Hydrogen revolution Table 2 shows that HCVs (heavy commercial vehicles) and XHCVs (extra-heavy commercial vehicles) show

Guy Bowden and § energy security as the future, stating that “seven of the biggest green the most potential for reaching cost competitiveness with ICEVs (internal combustion engine vehicles) and
BEVs (battery electric vehicles). Furthermore, the table also shows good cost effectiveness potential for
§ reduced local air pollution
§ economic development hydrogen project developers (have) come together most vehicle types except for small short-range PVs (passenger vehicles) and short-range busses.
to launch the Green Hydrogen Catapult Initiative in a
Liesel Kassier § increased energy access bid to increase the production of green hydrogen

§ increased synergies between renewable electricity 50-fold in the next six years” (Scott, 2020). TABLE 2: TOTAL COST OF OWNERSHIP OF HYDROGEN POWERED
generation and hydrogen as a means of energy VEHICLES VERSUS ICEVS AND BEVS
storage Due to this new initiative, the cost of green Type of Vehicle Usage Range Year of parity with ICE Year of parity with BEV
§ investment momentum stemming from other hydrogen could be cut to less than $2/kg. This cost Small PV Short Range 200km 2035 2050

sustainable technology success. would sway manufacturing intensive countries to Large PV (i.e. SUV) Long Range 600km 2030 2030
convert to green hydrogen as their primary energy
Demand for green hydrogen is accelerating in the source, thereby cutting emissions from the world’s LCV Long Range 650km 2030 2030
European Union, Japan and South Korea, all of most carbon-intensive industries, including MCV ShortRange 300km 2025 2030
whom are positioning themselves as large importers steelmaking, shipping, chemicals production and HCV Long Range 500km 2025 2020

of green hydrogen (Patel, 2020). This creates a power generation. XHCV Long Range 600km 2025 2020

Buss Short Range 150km 2025 2040

South Africa as a hub for renewable energy Coach Long Range 450km 2025 2025
Buss
2025
Long Range
500km
2025
and green Hydrogen production * Shades of green indicate greater competitiveness and shades of red indicate least competitiveness.
Source: Prepared by TWIMS using data from Hydrogen Council (2020, pp. 33-41)
Green hydrogen, a game changer for South

South Africa has been identified as a major potential developed (Patel, 2020). Furthermore, Petro SA’s

hub for green Hydrogen production. The country large gas-to-liquids refinery near Mossel Bay is Africa’s energy landscape?
has abundant wind and solar potential – among the running out of natural gas and is well positioned to
highest in the world (Hydrogen Council, 2020; Roos be repurposed to produce Hydrogen. The facility’s
& Wright, 2021). The country also possesses 80% of close proximity to the Coega SEZ and deep-water
the world’s Platinum Group Metals (PGMs) – critical Port of Ngqhurha makes it an attractive potential Hydrogen provides a game changing opportunity for From an industrial policy perspective, a key
resources used in the production of hydrogen hub for the production, storage and export of the South African energy landscape. Its use in various question for South Africa is how much of the
through electrolysis and electricity generation from Hydrogen gas (Roos & Wright, 2021). applications, to replace fossil fuels, is quickly becoming potential value from its hydrogen bounty could be

hydrogen using fuel cells (Minerals Council South a reality. Not only does the country possess many of captured locally? Will South Africa simply export
Africa, 2019). Additionally, South Africa already Economic opportunities for green hydrogen the resources to become a world leader in green hydrogen as a future commodity, and maximize
possesses significant knowledge, intellectual According to Air Products South Africa, the price of hydrogen production, but it already has a first mover financial returns from the process? Or will it
property and expertise in hydrogen and fuel cell grey hydrogen in South Africa is approximately R300
technology production. SASOL and Petro SA have per kg in February 2021. This is far from the advantage. Hydrogen provides clear opportunities for attempt to deepen value addition and develop
existing expertise and infrastructure that could be Japanese target price for imported blue/green South Africa to become a major global energy downstream hydrogen-based industrial activity,
used in its production, storage and transport. SASOL hydrogen set at R52.20 per kg. However, this has exporter as well as build a new environmentally such as the manufacture of hydrogen fuel cell
is experienced in producing brown hydrogen from been labelled as achievable for South African friendly and secure energy future for itself. vehicles and industrial equipment?
coal. While brown hydrogen is not environmentally hydrogen producers (Creamer, 2020). Furthermore,

friendly, this can be combined with carbon capture a joint European Union and South African
storage to reduce carbon emissions by around 90% investigation into power fuels and green hydrogen References
(Hydrogen Council, 2020). This would allow South found that a long-term price of R26.50 per kg for
Africa to capture a first mover advantage while exported South African green hydrogen is possible
infrastructure for green hydrogen production is (Roos & Wright, 2021). Air Products South Africa (Pty) Ltd (2021). [Industrial price of South African Hydrogen Council. (2020). Path to hydrogen competitiveness: A cost perspective.
Hydrogen]. Metcalfe, J., Burger, L., & Mackay, J. (2020). Unlocking South Africa's hydrogen
Creamer, M. (2020). South Africa’s potential to export green hydrogen boosted potential. Retrieved from Minerals Council South Africa. (2019). National Platinum
TABLE 1: SA HYDROGEN PRICES Engineering news. Retrieved from Strategy.
https://www.engineeringnews.co.za/article/south-africas-potential-to-export-green Patel, M. (2020). Green Hydrogen: A potential export commodity in a new global
Hydrogen Prices Price (ZAR per kg) -hydrogen-boosted-2020-05-26 marketplace. Retrieved from

Current price for industrial hydrogen in South Africa 300.00 Creamer, T. (2017). New study points to 90% renewables mix being least cost by 2050. Roos, T., & Wright, J. (2021). Powerfuels and Green Hydrogen. Retrieved from
Engineering news. Retrieved from
Japanese target import price for green hydrogen 52.20 https://www.engineeringnews.co.za/article/new-study-points-to-90-renewables-mi Scott, M. (2020). Green Hydrogen, The Fuel Of The Future, Set For 50-Fold Expansion.
Forbes. Retrieved from
x-being-least-cost-by-2050-2017-09-15
Long term price of South African green hydrogen 26.50 Enertrag (Producer). (2021). Green Hydrogen Export Opportunity for South Africa. https://www.forbes.com/sites/mikescott/2020/12/14/green-hydrogen-the-fuel-of-th
e-future-set-for-50-fold-expansion/?sh=30ba1f6d6df3
[Presentation]
Source: Prepared by TWIMS using data from Air Products South Africa (Pty) Ltd (2021); M. Creamer (2020); Roos and Wright (2021)