At this year’s Green Hydrogen Summit held at the Century City Convention Centre in Cape Town, Electricity Minister Kgosientso Ramokgopa cast doubt on the inclusion of green hydrogen in South Africa’s Integrated Resources Plan (IRP).
‘I’m not necessarily discounting it. The IRP does three things: the first is that it determines the demand, then it talks to the source and then it talks to the costs associated with the exploitation of that fuel source,’ he said.
Cape Argus reports that green hydrogen is increasingly seen as a pivotal element in the global shift towards sustainable and climate-resilient communities. The worldwide market for this renewable resource is expected to leap from $444 million in 2021 to roughly $4.4 billion by 2026.
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Analysts suggest that the green hydrogen sector could potentially contribute $4 billion to $9 billion to South Africa’s GDP and generate 14 000 to 30 000 jobs every year.
Leaders from the Northern, Western and Eastern Cape provinces plan to formalise a memorandum of understanding, committing to joint efforts in advancing the green hydrogen industry. This includes infrastructural development, trade initiatives and human resource development.
Ramokgopa indicated that the technology needed to make green hydrogen a feasible part of the IRP is not yet fully developed.
‘Therefore, the cost elements associated with green hydrogen are a bit more prohibitive. As you construct the IRP, you must also keep in mind the cost to the end-user; it’s got tariff implications,’ he stated.
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He also noted that many proposed green hydrogen initiatives are still in their infancy and require additional funding.
‘The major industrialised countries of the North are likely going to be prepared to pay an adjusted cost premium because they really want to get to the targets of net zero (carbon commitments),’ he added.
Mlungisi Mvoko, the Eastern Cape MEC for finance, economic development and environmental affairs, pointed out the province’s special economic zones, ports and logistical facilities as favourable factors for incorporating green hydrogen into the broader economy. He said that it is important for South Africa to collaborate with its neighbours to create a green hydrogen region of international significance.
Joanne Bate, the chief operations officer at the Industrial Development Corporation, reiterated the importance of collaboration in achieving South Africa’s green hydrogen ambitions, citing the Green Hydrogen Commercialisation Strategy led by the Department of Trade and Industry.
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Picture: @Kgosientsho_R / Twitter