Public Works and Infrastructure Deputy Minister, Sihle Zikalala, has revealed that since the gazetting of nine Strategic Integrated Projects (SIPs) by Infrastructure South Africa (ISA) in 2022, the Green Hydrogen National Programme (GHNP) has attracted projects valued at over R800 billion.
Speaking at the Green Hydrogen Devac Conference in Sandton, Zikalala said that about 20% of these investments have reached the bankable feasibility stage.
The projects, which range from prefeasibility to execution, include major initiatives such as the Isondo Precious Metals (IPM) fuel cell and electrolyser component manufacturing facility in Gauteng, the Prieska Energy Cluster Green Ammonia Production facility in the Northern Cape, and the Hive Green Ammonia export project in the Eastern Cape.
Other projects include the Boegoes Bay Green Hydrogen Port Rail and Infrastructure Project in the Northern Cape, the ArcelorMittal Saldanha Green Steel Project in the Western Cape, and a 60MW hydrogen production facility in Sasolburg, Gauteng, he said .
Zikalala said only 1% of South Africa's land is required to support green hydrogen economy initiatives, which would not interfere with agricultural or residential land.
He also said that an additional 5.2 million hectares in the Renewable Energy Development Zones could be utilised for this purpose.
Moreover, Zikalala said ISA, an entity of the Public Works Department, has acted as a key enabler for South Africa's Green Hydrogen opportunity.
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By gazetting the GHNP as a SIP, projects benefit from expedited development processes, including faster approvals and authorisations.
"The seventh administration has identified three priorities: driving inclusive growth and job creation; reducing poverty; and building a capable, ethical, and developmental state," Zikalala said.
Zikalala also called on industry leaders to collaborate with the government to localise manufacturing in the green hydrogen value chain, highlighting that South Africa has the potential to produce between six to 13 million tons of green hydrogen annually by 2050.
"We look up to you to take a lead in facilitating green hydrogen manufacturing capability in a manner that localises the production of upstream and downstream value-added products."
Zikalala said South Africa as a green hydrogen investment destination still offers substantial additional investment opportunities including green shipping, green fertiliser production, electrolyser manufacturing, pipeline development, and green field port developments.
