The provincial governments of the Northern and Western Cape signed “a first-of-its-kind” agreement of cooperation at the inaugural South Africa Green Hydrogen Summit in Cape Town last week.
The agreement on the Western SADC Green Hydrogen Cluster was signed, amongst others, by Dr Zamani Saul, premier of the Northern Cape, and Alan Winde, premier of the Western Cape, under the auspices of the national government.
It sets out the principles and areas of cooperation for the development of a green hydrogen economy in South Africa.
According to Saul, the Northern Cape accounts for four of the nine hydrogen projects registered with Infrastructure South Africa, a programme that was announced by Pres. Cyril Ramaphosa and Patricia de Lille, minister of Public Works and Infrastructure, in 2020.
The projects in the Northern Cape are the Prieska Power Reserve, Ubuntu Green Energy Hydrogen Project, Boegoebaai Green Hydrogen Development, Upilanga Solar and Green H2 Park.
“This will substantially change the socio-economic landscape of the province,” Saul said.
“The key themes at the summit were urgency, collaboration and leadership. Inherent in South Africa’s desire to be a green hydrogen investment destination of choice, is the understanding of capital needs, demand and long-term partnerships for production and supply. Our country needs to prove it is competitive, stable and a reliable supplier.
“It must also prove its ability to develop and operate complex industrial infrastructure, demonstrating skill and understanding in putting these elements together. It also requires the testing of the regulatory framework from generation, production and transportation. The urgency needed is not in the planning, but the doing.
“We need to build foundations from which projects can be developed, investment attracted, supply chains stimulated and most importantly, jobs being created for our people,” he continued.
“It links the renewable energy generation and mining hub of the Northern Cape and the industrial and commercial base of the Western Cape in a meaningful and complementary way.
“The Boegoebaai Green Hydrogen Development and special economic zone masterplan is nearing the point of enabling public consultation regarding the development of 40 gigawatts of electrolyser capacity powered by approximately 80 gigawatts of renewable energy.”
The Boegoebaai Port and Rail Infrastructure Project forms part of the Boegoebaai Green Hydrogen Development.
In his address at the summit, Ramaphosa said South Africa had the potential to produce 6 to 13 million tons of green hydrogen and derivatives a year by 2050.
“Globally, the demand for green hydrogen and green hydrogen-based products is rising significantly.
“This presents a unique opportunity for South Africa to link its mineral endowment with its renewable energy endowment to drive industrialisation. At the same time, it will create jobs, attract investment, bring development to rural provinces, and support a just transition from fossil fuels,” he said.
