South Africa is planning to export green hydrogen on a large scale. President Ramaphosa said that to achieve this, a project called Boegoebaai is being developed in the Northern Cape province by energy company Sasol in collaboration with the Industrial Development Corporation.
Green hydrogen is a more attractive form of energy than grey or brown hydrogen, which are produced from natural gas and coal respectively. Hydrogen has many practical applications in industry and in the private sector. For example, it can be used to power buses, steel mills and possibly aircraft, or mixed with natural gas to heat homes.
Goals of the project
The project is also supported by the German government - the goal is to supply green hydrogen to the European Union, which wants to import 10 million tonnes annually by 2030, he said.
"The Boegoebaai project is an excellent opportunity for South Africa and Germany to work together on green hydrogen development, energy security, job creation, just transition and climate action. The long-standing cooperation between South Africa and Germany on climate issues will be further deepened through the Partnership for a Just Energy Transition between South Africa, Germany, France, the United Kingdom, the United States and the European Union, which was announced at COP26 late last year," Ramaphosa said.
He added that the development of the green hydrogen economy is a national economic priority for South Africa.
Green hydrogen in South Africa - potentials
The Boegobaai has the potential to produce up to 400 kilotonnes of hydrogen per year, which will require renewable energy to the tune of 9 gigawatts, or about 20 % of South Africa's current installed energy capacity. The project is also designated as a Strategic Integrated Project (SIP) in the South African National Development Plan (NDP).
Rising oil prices and the ongoing war between Russia and Ukraine have forced many countries around the world to seriously consider a faster transition away from fossil fuels.
South Africa has significant structural advantages for the production of green hydrogen for export purposes. These include the country's size and climate, which ensure that South Africa has high-quality renewable energy sources from solar and wind power, as well as some of the highest average load factors.
Take advantage of opportunities in the Energy sector with Enterprise Africa
With 20 years’ experience in African markets, we have recently unveiled our B2B-focussed E-Commerce platform for Africa, Enterprise Africa. The platform offers international companies a risk-free entry way into African markets while connecting them to African business buyers. Through the platform, international quality products of all relevant sectors are marketed and sold on the African continent.
The production of Green Hydrogen in South Africa offers considerable opportunities for foreign companies in the sector wishing to enter the South African market. Enterprise Africa assists you in taking advantage of this opportunity by facilitating trade with local stakeholders while keeping costs down, ensuring a risk-free market entry into the promising Energy sector of South Africa.