South Africa: Progress Being Made in the Implementation of SA's Green Hydrogen Strategy

Trade, Industry and Competition Minister Parks Tau says meaningful and tangible progress is being made in the implementation of South Africa's Green Hydrogen Commercialisation Strategy.

He was addressing delegates at the Green Hydrogen Summit on Thursday, held at the Century City Conference Centre in Cape Town.

Tau said several commercial-scale green hydrogen projects are currently in development across the country, each addressing different parts of the value chain that must be unlocked.

"Through the Industrial Development Corporation (IDC), we have also secured €23 million in grant funding from the German government via KfW Development Bank.

"These funds will be used to de-risk and fast-track key catalytic green hydrogen projects. Of the 24 projects identified as Strategic Integrated Projects (SIPs), several have already completed their pre-feasibility study phase.

"We have also established the Just Energy Transition Green Hydrogen Programme Management Office, hosted by the IDC, to coordinate the implementation of the green hydrogen chapter of the JET-IP Implementation Plan," he told the delegates.

He said the scale of funding required to develop a green hydrogen ecosystem was immense, therefore collaboration was not just a recommendation, but a necessity.

"We will explore a range of mechanisms, including project feasibility and development funding, tools to de-risk investments, support for green premiums during the early stages of cost curve reduction such as contracts for difference, investment in supporting infrastructure, and funding that facilitates ecosystem development, including policy support, capacity building, technology transfer, sustainability and inclusion," he said.

Tau said the Green Hydrogen ecosystem will not help South Africa to avert further de-industrialisation, but assist in driving the reindustrialisation of the economy.

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