Johannesburg — THE Department of Science and Technology, Anglo Platinum and US fuel cell company Altergy Systems have established a new company to manufacture fuel cells for the sub-Saharan African market.

A fuel cell is a device that converts the chemical energy of a fuel such as hydrogen and an oxidant into electricity. It generates electricity inside the cell through reactions between a fuel and an oxidant.

Most fuel cells use platinum group metals as a catalyst for the conversion of hydrogen into electricity. With 75% of the world's platinum group metals in SA, the country stands a chance to play an active role in the so-called hydrogen economy, in which hydrogen is used to produce electricity.

The establishment of the company will develop the platinum group metals market and promote local beneficiation, says Angloplat's head of market development and research, Anthea Bath.

Beneficiation, which is also known as value-added processing, involves the transformation of a primary material - produced by mining and extraction processes - into a more processed product, which has a higher export sales value. Beneficiation is critical if SA's mining sector is to change from being a predominantly primary commodity exporter to becoming a world exporter of processed minerals.

The department, through its Technology Innovation Agency, Angloplat, through its Platinum Group Metals Development Fund, and Altergy would set up the new company, Clean Energy, under a licence agreement.

The department and Angloplat will each have a 40% interest in Clean Energy, with Altergy holding the other 20%.

"In the long run, the department will seek to reduce its stake. It will look for investors, most probably from the private sector," the department's spokesman, Lunga Ngqengelele, said yesterday.

Science and Technology Minister Naledi Pandor said yesterday: "This initiative is in line with the Department of Science and Technology's goal of promoting SA as a source of world-class, high technology transfer and infrastructure opportunities ."

In a statement yesterday, the department said the new company's immediate objectives included marketing and setting up a distribution network for Altergy products in sub-Saharan Africa.

"Thereafter, following the successful development of the market, Clean Energy will look to establish a manufacturing and assembly plant in SA which will ultimately supply the sub-Saharan and (global) markets with high quality fuel cell products," the department said.

The department said the agreement was in line with the objectives of the national hydrogen and fuel cells research, development and innovation strategy.

This strategy is a government initiative aimed at enabling SA to extract value from the beneficiation of its natural resources.