HYDROGEN SOCIETY
ROADMAP FOR SOUTH AFRICA 2021
D E P A R T M E N T O F S C I E N C E A N D I N N O V AT I O N

SECURING A CLEAN, AFFORDABLEAND SUSTAINABLE ENERGY
FUTURE FOR SOUTH AFRICAFOREWORD BY THE MINISTER OF HIGHER EDUCATION,SCIENCE AND INNOVATION
We are holding this important launch of the Hydrogen Society
Roadmap (HSRM) at a time when the world and our country
are faced with four major challenges• The Covid 19 pandemic• Persisting and stubborn economic crises, and its associated challenges ofpoverty, inequality and unemployment• The crises facing poor families, households and communities to make ends
meet - the struggle to sustain life and livelihoods• Climate Change
The role of science, technology and innovation (STI) in confronting the above
challenges has perhaps never been this relevant and important. It is also forthis reason that STI remains one of the key drivers in the implementation of
our Economic Reconstruction and Recovery Plan to embark on sustainableeconomic growth and development, job creation and socio-economictransformation. For instance, transitioning towards a just and inclusive net
zero carbon economy will require scaled up collaboration, investment andinnovation in order to address the four major challenges.
There is an African proverb that state that “If you want to sit under a shadein your old age, plant a tree now”. In 2007, when Cabinet approved theHydrogen South Africa Strategy (HySA), the first seeds were planted, andthat is why South Africa today is well placed and poised to leverage thehydrogen opportunity to be at the centre of our economic growth anddevelopment strategies, as well as part of our mitigation strategy for climatechange through greening our economy and society. Transitioning throughthe hydrogen development trajectory must also form a strong platform toaddress the needs of the overwhelming majority of our people, especially
blacks, women, youth and the poor, both urban and rural.
The Hydrogen Society Roadmap is one of government’s strategies and policy
direction aimed at bringing together a variety of stakeholders and institutions(both public and private) around a common vision on how to use anddeploy hydrogen and hydrogen related technologies as part of our economic
development and greening objectives. As a country we have demonstrated
our scientific capacity and capabilities in confronting the Covid 19 pandemic.
Similarly this roadmap is also important and has the potential of placing South
Africa as an important player, participant and scientific thought leader in theemerging global hydrogen system.

I am confident that through the effective implementation of this hydrogensociety roadmap, hydrogen will become an important energy source andcatalyser that will, amongst other things, enable decarbonisation of crucial
carbon intensive sectors of our economy, like heavy duty transportand other energy intensive industries. Successful implementation of thisroadmap must lead to the rapid development of a green power sector, adomestic manufacturing sector for hydrogen products, fuel cell components,
and the creation of an export market for South Africa’s green hydrogen.
Dr BE Nzimande
Minister of Higher Education, Science and Innovation

Cofimvaba Science Centre, launched by the Minister on 6 October 2021, ispowered by a combination of renewable energy and fuel cell with on-sitehydrogen production

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONAACKNOWLEDGEMENTS
Phil Mjwara

Department of Science and Innovation

Mmboneni Muofhe

Department of Science and Innovation

Rebecca Maserumule

Department of Science and Innovation

Cosmas Chiteme

Department of Science and Innovation

Somila Xosa

Department of Science and Innovation

Tumi Mailula

Department of Science and Innovation

Mbangiseni Mabudafhasi

Department of Science and Innovation

Mandy Mlilo

Department of Science and Innovation

Gadifele Tlhale

Department of Science and Innovation

Lendy Letimela

Department of Science and Innovation

Dikeledi Marupula

Department of Science and Innovation

Tinyiko Nkuna

Department of Science and Innovation

Kamogelo Morake

Department of Science and Innovation

Buhle Khumalo

Department of Science and Innovation

Taslima Viljoen

Department of Science and Innovation

Veronica Mohapeloa

Department of Science and Innovation

Robert Richardson

Air Products South Africa

Dumisa Gina

Air Products South Africa

Arthi Govender

Air Products South Africa

Natascha Viljoen

Anglo American Platinum

Fahmida Smith

Anglo American Platinum

Suren Rajaruthnam

Anglo American Platinum

Jan Klawitter

Anglo American Platinum

Zanele Mavuso-Mbatha

Bambili Group Investments

Mphathi Nyewe

Black Business Council

Kesh Mudaly

Boston Consulting Group (BCG)

Colin Kinghorn

Boston Consulting Group (BCG)

Milenko Rajak

Calodex

Ishmael Poolo

Central Energy Fund

Mbuso Xaba

Central Energy Fund

Dominic Milazi

Central Energy Fund

Sandisiwe Ncemane

Central Energy Fund

Kevin Nassiep

City of Cape Town

Jan van der Loosdrecht

Council for Scientific and Industrial Research

Kevan Naidoo

Council for Scientific and Industrial Research

Njabulo SiyakatshanaCouncil for Scientific and Industrial Research

Bongi Ntsoelengoe

Council for Scientific and Industrial Research

Crescent MushwanaCouncil for Scientific and Industrial ResearchThomas Ross

Council for Scientific and Industrial Research

MJ Ledwaba

Department of Defence

Thabo Motlhamphe

Department of Defence

Sunita Satyapal

US Department of Energy

Nomfundo Tshabalala

Department of Forestry, Fisheries and the Environment

Kent Buchanan

Department of Forestry, Fisheries and the Environment

Jongi Witi

Department of Forestry, Fisheries and the Environment

Olga Chauke

Department of Forestry, Fisheries and the Environment

Thabo Mokoena

Department of Mineral Resources and Energy

B

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONACKNOWLEDGEMENTS
Mthokozisi Mpofu

Department of Mineral Resources and Energy

Setepane Mohale

Department of Mineral Resources and Energy

Mokgadi Modise

Department of Mineral Resources and Energy

Lebogang Mojanaga

Department of Mineral Resources and Energy

Thebe Mamakoko

Department of Mineral Resources and Energy

Noma Qase

Department of Mineral Resources and Energy

Xolile Mabusela

Department of Mineral Resources and Energy

Matthews Bantsijang

Department of Mineral Resources and Energy

Jeffrey Modipane

Department of Public Works and Infrastructure

Mfundo Xulu Ka Dlamini

Department of Public Works and Infrastructure

Lionel October

Department of Trade, Industry and Competition

Gerhard Fourie

Department of Trade, Industry and Competition

Kishan Pillay

Department of Trade, Industry and Competition

Rashmee Ragaven

Department of Trade, Industry and Competition

Umeesha Naidoo

Department of Trade, Industry and Competition

Annelize Van der Merwe

Department of Trade, Industry and Competition

Alec Moemi

Department of Transport

Bopang Khutsoane

Department of Transport

Princess Khathi

Department of Women, Youth and Persons with Disabilities

Vishal Pooran

Egoli Gas

Neo Modise

Egoli Gas

Mark Rawlins

Energy & Combustion Services Technology Solutions Development

Guillaume Laurent

Engie

Koen Langie

Engie

Michele Azalbert

Engie

Sean McGuire

Engie

Tumi Kgomo

EPCM Global Engineering

Gunther Hasse

EPCM Global Engineering

Bheki Nxumalo

Eskom

Shaun Pershad

Eskom

Sumaya Nassiep

Eskom

Mandy Rambharos

Eskom

Bruno Merven

Energy Systems Research Group

Andrew Marquard

Energy Systems Research Group

Fadiel Ahjum

Energy Systems Research Group

Oliver Damm

Fraunhofer Institute in South Africa

Bart Biebuyck

Fuel Cell and Hydrogen-Joint Undertaking

Seipati Mngadi

Gauteng Industrial Development Zone

Maidei Matika

Gauteng Industrial Development Zone

Thakhani Nemaranzhe

Gauteng Industrial Development Zone

Bruce Shaw

GreenCapeFrancis Jackson

GreenCape

Lisa Reynolds

Green Building Council South Africa

Norbet Nasse

Growthpoint

Daniel Grewan

Growthpoint

Grahame Cruickshanks

Growthpoint

Raul Timponi

IHS Consultants/Agora

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONCACKNOWLEDGEMENTS
Mahandra Rooplall

Industrial Development Corporation

Sifiso Sibiya

Impala Platinum

Tsakani Mthombeni

Impala Platinum

Thulisile Dlamini

Independent Power Producers OfficeDeon Fourie

Independent Power Producers Office

Gary King

Infrastructure South Africa

Noe van Hulst

International Partnership for Hydrogen and Fuel Cells in the Economy

Tim Karlsson

International Partnership for Hydrogen and Fuel Cells in the Economy

Anusha Naicker

International Youth Foundation of South Africa

Colin Hagans

International Youth Foundation

Sakib Khan

Isondo Precious Metals

Martin Lamprecht

JHI Excellerate

Mike Levington

Kabisolar

Collins Makhado

KPMG

Dex Machida

KPMG

Conrad Mmotsa

KPMG

Neo Masilo

KPMG

Stephen Price

KPMG

Bonolo Sinobolo

KPMG

Terence Singh

KPMG

Frank Blackmore

KPMG

Johan Smith

KPMG

Amos Shiburi

Limpopo Economic Development Agency

Freddy Chaba

Limpopo Economic Development Agency

Takeshi Hiramatsu

Marubeni Corporation

Roger Baxter

Minerals Council South Africa

Gary Pattrick

MintekJoel Netshitenzhe

Mapungubwe Institute for Strategic Reflection

Zama Mazibuko-Makena

Mapungubwe Institute for Strategic Reflection

Nqobile Xaba

Mapungubwe Institute for Strategic Reflection

Jan Van der Merwe

Mitochondria Energy Company

Mikel Mabasa

NAAMSA: Automotive Business Council

Joanne Yawitch

National Business Initiative

Steve Nicholls

National Business Initiative

Reitumetse Molotsoane

National Business Initiative

Dondo Mogajane

National Treasury

Nonhlanhla Msimango

National Treasury

Aalia Cassim

National Treasury

Ashley Ramasimu

National Treasury

Gcobisa Magazi

National Treasury

Waseem Carrim

National Youth Development Agency

Gharpure Shriram

Nel Hydrogen

Filip Smeets

Nel Hydrogen

Hiten Parmar

Nelson Mandela University

Dmitri Bessarabov

North West University

Jak Koseff

Presidency, Infrastructure South Africa

Trudi Makhaya

Presidency

D

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONACKNOWLEDGEMENTS
Jonathan Metcalfe

PricewaterhouseCoopers (PWC)

Lethabo Manamela

South African National Energy Development InstituteMinnesh Bipath

South African National Energy Development Institute

Neville Smith

South African National Energy Development Institute

Barry Bredenkamp

South African National Energy Development InstituteTebogo Snyer

South African National Energy Development Institute

Evelyn Nyandoro

South African National Energy Development Institute

Keorapetse Kgaswane

South African National Energy Development InstituteMandisa Nkosi

South African National Energy Development Institute

Deon Cloete

South African Institute of International Affairs

Fleetwood Grobler

Sasol

Thembakazi Mali

Sasol

Sarushen Pillay

Sasol

Alex Vogel

Sasol

Sabena Dall’Omo

Siemens South Africa

Gaylor Montmasson-Clair

Trade and Industrial Policy Strategies

Muhammed Patel

Trade and Industrial Policy Strategies

Johan Van Zyl

Toyota-Europe

Portia Derby

Transnet

Mashukudu Molele

Transnet

Sherman Indhul

Transnet

Nkumbulo Sithole

Transnet

Valerie Geen

United Nations Industrial Development Organisation

Sharon Blair

University of Cape Town

Jeffrey Mahachi

University of Johannesburg

Pat Naidoo

University of Johannesburg

David Walwyn

University of Pretoria

Sivakumar Pasupathi

University of the Western Cape

Thapelo Tladi

UK Partner for Accelerated Climate Transitions

Charles Michaels

UK Partner for Accelerated Climate Transitions

Federico Villatico Campbell

UK Partner for Accelerated Climate Transitions

Rebecca Gunning

UK Partner for Accelerated Climate Transitions

Anusha Witt

UK Partner for Accelerated Climate Transitions

Sunita Satyapal

US Department of Energy, Fuel Cell Technology Office

Gregory Kleen

US Department of Energy, Fuel Cell Technology Office

Joost Kessels

Volkswagen South Africa

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONETABLE OF CONTENTSF

SECTION A: UNDERSTANDING SOUTH AFRICA’S HYDROGENOPPORTUNITY

1

1

2

South Africa’s current energy landscape

1.1

South Africa’s energy supply and demand2

1.2

South Africa’s energy infrastructure3

1.3South Africa’s existing energy policies and strategies

8

1.4

The energy-sector stakeholders

91.5

The greenhouse gas (GHG) landscape

11

1.6

Air quality

13

2South Africa’s opportunity to become a significant player in the hydrogen market

14

2.1

Global trends in hydrogen

14

2.2

South Africa’s competitive edge in hydrogen production

15

2.2.1

Renewable-energy resources and land availability

15

2.2.2

Fischer-Tropsch skills and capabilities

16

2.2.3

Platinum-group metals (PGMs)

17

2.2.4

Port infrastructure

17

2.2.5

Depleted gas fields

17

2.2.6

Existing strategic trade partnerships with countries looking to import green hydrogen

18

2.3

South Africa’s economic reconstruction and recovery plan

19

2.4

Just transition is at the centre of future climate policy

20

2.5

The existing HySA Programme

20

2.6

The regulatory framework presents both barriers and opportunities

26

2.6.1

Existing policies

26

2.6.2

Barriers and opportunities

27

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONTABLE OF CONTENTSSECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH
AFRICA29

3

30

Building blocks for a South African hydrogen society

3.1

Theory of change

31

3.2

The International Energy Agency Policy Framework

36

3.2.1

Establish targets and/or long-term policy signals

36

3.2.2

Support demand creation

36

3.2.3

Mitigate investment risks

36

3.2.4

Promote R&D, innovation, strategic demonstration projects and knowledge-sharing

36

3.2.5

Harmonise standards and remove barriers

36

3.3

Key milestones/activities

37

4South African hydrogen-society outcomes

42

4.1

Decarbonisation of transport

42

4.2

Decarbonisation of energy-intensive industry

47

4.3

Creation of an export market for South African hydrogen

51

4.4

Centre of Excellence in Manufacturing for hydrogen products and fuel cell components

55

4.5

Green and enhanced power sector

59

4.6

Transition from grey to blue to green hydrogen

63

5

Catalytic projects: Industrial clusters and demonstration zones

69

5.1

The Platinum Valley Initiative – South Africa’s Hydrogen Valley

69

5.2

CoalCO2-X Project

72

5.3

Boegoebaai: A global hub for future fuel

75

5.4

Sustainable Aviation Fuels Project77

6

Research, development and innovation: The key to growth of the hydrogen society

79

7

Human capital development

81

7.1

Technical and Vocational Education and Training (TVET) fuel-cell training

81

7.2

TVET skills gap

81

7.3

Just Energy Transition Centre

81

7.4

Public awareness and engagement

81

8

Gender equality and social inclusion (GESI)

82

9

Monitoring, evaluation and learning framework

84

9.1

Monitoring of the HSRM objectives

84

9.2

Evaluation

85

9.3

The learning framework

85

10Conclusion

86

GLOSSARY
REFERENCES
APPENDICES

87
93
97

Appendix A: Approach and methodology

98

The framework foresight method

98

The South Africa hydrogen development model

99

Appendix B: Stakeholder engagement

100

Stakeholder questionnaires

100Interviews

100

Expert working groups

100

Industry reference groups

100

Collaboration workshops

100

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONGFIGURES
Figure ES-1: Priority actions based on the HSRM outcomesJ

Figure ES-2 Priority actions based on IEA Policy Framework

K

Figure 1.1: South African energy flow in 2017

3

Figure 1.2: South Africa’s electricity supply mix by key technology

3

Figure 1.3: Planned South African energy mix extended to 2050

4

Figure 1.4: Generation and transmission capacity expected in 2030

5

Figure 1.5: Natural gas supply from Mozambique6

Figure 1.6: Refineries and major existing and planned oil and gas pipelines

7

Figure 1.7: Trends in carbon-intensity indicators for South Africa between 2000 and 2017

12

Figure 2.1: South African RE resources and projected green-hydrogen cost, relative to the rest of the world

16

Figure 2.2 FT Process and RE power fuels

16

Figure 2.3 South African PGM reserves

17

Figure 2.4: South Africa’s existing port infrastructure

18

Figure 2.5: South African Economic Reconstruction and Recovery Plan (SAERRP) focused green economy

19

Figure 2.6: South Africa’s journey towards a hydrogen economy

22

Figure 3.1: Theory of change for the HSRM

30

Figure 3.2: High-level outcomes of the HSRM

32

Figure 3.3: Overarching theory of change

34

Figure 3.4: Summary of key actions_1

38

Figure 3.5: Summary of key actions_2

39

Figure 3.6: Some high-level numbers on the catalytic projects and some key actions and milestones

40

Figure 4.1: Theory of change for decarbonisation of heavy vehicles, shipping, aviation and rail

43

Figure 4.2: Volumes of South Africa’s exports to leading partners in 2018 (ZAR billion)

47

Figure 4.3: Theory of change for decarbonisation of energy-intensive industry

48

Figure 4.4: Extract from the Japanese roadmap indicating their interest in importing hydrogen

51

Figure 4.5: Theory of change for the creation of an export market for SA green hydrogen

52

Figure 4.6: Theory of change for Centre of Excellence in Manufacturing for hydrogen products and fuel cell components

56

Figure 4.7: Theory of change for a green and enhanced power sector

60

Figure 4.8: Indicative hydrogen supply by production method in million tonnes of hydrogen per annum

63

Figure 4.9: Theory of change for hydrogen generation, storage and distribution

64

Figure 5.1: The Hydrogen Valley concept and benefits

69

Figure 5.2(a): Geographical representation of the Platinum Valley70

Figure 5.2(b): Indicative hydrogen demand sectors in the hubs

70

Figure 5.3: Flue gas conversion into value-added green products

72

Figure 5.4: The CoalCO2-X Project and its role in the Just Transition

73

Figure 5.5: Schematic diagram showing the CoalCO2-X programme Research, Development and Innovation (RDI) hubs

74

Figure 5.6: Schematic diagram showing near- and long-term opportunities of the CoalCO2-X programme

75

Figure 5.7: Synergies between the Boegoebaai and CoalCO2-X programmes

76

Figure 6.1: Global hydrogen publications output by supply chain area

79

Figure 6.2: Global hydrogen technology patent filing over time

80

Figure 8.1: Conceptualisation of Women’s Economic Empowerment

83

Figure 9.1: Schematic of the Monitoring, Evaluation and Learning (MEL) framework

84

Figure 12.1: The Framework Foresight Illustration

99

Figure 13.1: HSRM stakeholder engagement

101

H

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONTABLES
Table 1.1: Key role players and their mandates

9

Table 1.2: Key climate change policy documents

11

Table 2.1: Hydrogen production methods and associated carbon footprints

14

Table 2.2: Current HySA Centres of Competence and focus areas

20

Table 2.3: Existing policies and plans that could be used to support hydrogen-related technologies

26

Table 2.4: Tax and incentive mechanisms that could support hydrogen-related technologies

28

Table 4.1: Action plan for decarbonisation of heavy vehicles, shipping, aviation and rail

45

Table 4.2: Action plan for decarbonisation of energy-intensive industry

49

Table 4.3: Action plan for the creation of an export market for SA green hydrogen

53

Table 4.4: Action plan for Centre of Excellence in Manufacturing for hydrogen products and fuel cell components

57

Table 4.5: Action plan for a green and enhanced power sector

61

Table 4.6: Action plan for hydrogen generation, storage and distribution

65

Table 8.1: Barriers to women’s economic empowerment in green industry

82

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONIEXECUTIVE SUMMARYSouth Africa faces the challenge of securing clean, affordable and sustainableenergy to power its economy and transition into a carbon-neutral society.The
country’s overarching National Development Plan (NDP) 2030 advocates forincreased investment in an energy sector that is both economically inclusive andenvironmentally sustainable. The NDP identifies, as a priority, the productionof sufficient energy to ensure availability, accessibility and affordability while
reducing the carbon intensity of the economy. In its quest to reduce emissions
in the energy mix, South Africa has developed a highly respected Renewable
Energy Independent Power Producer Procurement Programme (REIPPPP).
The country has made further significant commitments to integrating
renewable energy (RE) sources through the Integrated Resource Plan 2019,
while also pursuing its emissions-reduction targets based on commitments
made in response to the 2015 Paris Climate Agreement (PA). With a soundfoundation, hydrogen is well positioned to become a game changer in South
Africa’s aspirations to move towards a net-zero carbon economy.

energy (RE) systems through increased intra-Africa trade. Significant local
value creation and wealth will therefore be realised from the production,
distribution, storage and utilisation of the green-hydrogen value chain inSouth Africa and across the world.

South Africa should leverage the hydrogen opportunity as
part of its Economic Reconstruction and Recovery Plan

Ensure that Gender, Equality and Social Inclusion (GESI) are at
the core of the transition to a low carbon economy to tackle
the triple challenges of poverty, inequality and unemployment
The implementation of the HSRM is expected to contribute to the goal of ajust and inclusive net-zero carbon economic growth for societal wellbeing by
2050 through the following high-level outcomes:

The Hydrogen Society Roadmap (HSRM) will serve as a national coordinating
framework to facilitate the integration of hydrogen-related technologies
in various sectors of the South African economy and stimulate economic
recovery, in line with the Economic Reconstruction and Recovery Plan. In its
pursuit of a hydrogen society, South Africa will leverage its significant natural
renewable resources, mineral endowment and capabilities to stimulate local
demand for renewable hydrogen and build a viable green-hydrogen export
market. This will contribute to the growth and development of the South
African economy and the creation of sustainable green jobs, while moving thecountry towards secure and low-cost sustainable energy, promoting broader
national competitiveness. In parallel, South Africa will be a catalyst in thetransition of its Southern African neighbours from fossil fuels to renewable•

Decarbonisation of heavy-duty transport;•

Decarbonisation of energy-intensive industry (cement, steel, mining,refineries);•

Enhanced and green power sector (main and micro-grids);•

Centre of Excellence in Manufacturing for hydrogen products and fuelcell components;•

Creating an export market for South African green hydrogen; and•Increase the role of hydrogen (grey, blue, turquoise and green) in theSouth African energy system in line with the move towards a net-zero
economy.

A total of 70 priority actions have been identified and classified according to
the high-level outcomes (Figure ES-1).The role of GESI was analysed for eachof the key actions with a view to embed GESI indicators into the monitoring,evaluation and learning framework of the HSRM.

Decarbonisationof Transport
Hydrogenproduction,
storage,
distribution

Decarbonisation ofEnergy-Intensive
Industry70

KEY ACTIONSCentre of Excellencein Manufacturing

Creation of Export
Market SA H2

Enhanced andGreenPower Sector

Figure ES-1: Priority actions based on the HSRM outcomesJ

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONEXECUTIVE SUMMARY (CONTINUED)

The implementation of the HSRM is expected to set the pace for thecountry’s creation of a sustainable workforce that is inclusive and greengrowth oriented. The importance of aligning the country’s TVET college
system with real industry needs and opportunities to improve labour
absorption is therefore critical. A sectoral alignment with industry-specificrequirements will facilitate a just labour transition, where potential job losses
in the traditional coal-mining industry, for example, are mitigated through theupskilling, retraining and on-boarding of workers.

and technical components of a project. Furthermore, such industries havegreat potential to act as a catalyst for enhanced gender equality and theempowerment of women in wider society.

Build a stronger partnership between government, theprivate sector and civil society by putting in place an enabling
policy environment as quickly as possible
To ensure that the development of the roadmap was inclusive, theDepartment of Science and Innovation (DSI) consulted widely across various
stakeholder groups. This consultation process was commenced in September
2020, with more than 50 stakeholder organisations participating, followed bysmaller engagements with key stakeholders on the Theory of Change, theHydrogen Valley Report and the Green Hydrogen Economy Technical andVocational Education and Training college study, including high-level bilateral
discussions with other Government departments. The HSRM consultative
process culminated in the Collaboration Workshop, in which close to 100
stakeholders participated. The purpose of the Workshop was to synthesise
the proposed draft action plan with stakeholder roles and identify gaps
emanating from the earlier consultations. Government has an important roleto play in supporting the transition towards a low-carbon economy that isdriven through the coordination of efforts across industry, science councils
and academia to transform commitments into action. Using the International
Energy Agency (IEA) Policy Framework nomenclature, the 70 priority actions
were classified and the summary is included in Figure ES-2.

Rebrand South Africa as a destination for sustainable
investment that incorporates environmental, societal andgood governance principles
To kickstart the hydrogen economy in South Africa, four catalytic projects havebeen identified through engagements with stakeholders in the private sector.
These include the Platinum Valley Initiative (South African Hydrogen Valley),
the CoalCO2-X Project, Boegoebaai Special Economic Zone (SEZ) and theSustainable Aviation Fuels (SAF) project. Through their implementation, theflagship projects are expected to produce approximately 500kt of hydrogenand create at least 20 000 jobs annually by 2030 and a Gross Domestic
Product (GDP) contribution of at least USD5 billion to the economy by2050. The projects will contribute to a growth of sustainable green industries
that are resource- and energy-efficient, low-carbon and low-waste, nonpolluting and safe. The private sector is expected to co-fund and lead theexecution of large-scale deployment projects to demonstrate commercial
viability. Providing tailor-made support to shovel ready flagship projects canenable innovation in the policymaking process while de-risking the financial

Establish targets
or long-term
policy signals

Support demand
creation70

SupportSkills development
publicawareness

Harmonise standards
and remove
barriers

KEY ACTIONS
Implement Strategic
Demonstration and
Deployment
Projects

Mitigate investment
risks

Promote Research
Development andInnovation

Figure ES-2: Priority actions based on IEA Policy Framework

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONKEXECUTIVE SUMMARY (CONTINUED)

Some of the priority actions to be pursued in the short term (2021-2024)
include:•The alignment and integration of the HSRM with relevant national
priorities and plans pertaining to energy, industry, decarbonisation andjust transition in order to provide investor confidence and support
scale-up;•

The support of catalytic projects that demonstrate commercial viability,with a focus on industrial clusters to support wider adoption;•

The review of regulatory, fiscal and other policy measures to support
the development of a hydrogen economy;•

Identification of skills required for a hydrogen workforce, and developing
a plan to build these skills while recognising the objectives of GESI;•Continuing the building of the research ecosystem to support
innovation, which will be essential to ensure that costs are reduced andhydrogen and hydrogen fuel-cell technologies (HFCT) move from aniche technology to market adoption;•

Mapping international financial programmes and partnerships that are
instrumental in supporting the hydrogen economy; and•Establishing realistic targets, and implementing a monitoring,evaluation and learning framework. in order to support the successful
implementation of the HSRM in the short, medium and long term.

L

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

Build upon the momentum created by the Hydrogen South
Africa Programme to position South Africa as a global player
in the green hydrogen and green ammonia markets
Building on the successful implementation of the Cabinet-approved
Hydrogen South Africa (HySA) Strategy, DSI, together with other government
departments, initiated the development of the HSRM in March 2020.
To support the development of a sustainable hydrogen society in South
Africa, it is critical to build on the achievements and technical expertiseof the HySA Programme, and continue to support research, development
and innovation (RDI) beyond the initial 15-year period, which ends on
31 March 2023. In this regard, on 14 September 2021, Cabinet approved theextension of support for the HySA Programme for an additional 10 years, inorder for the programme to provide the technical expertise required for the
implementation of the HSRM.

International partnerships are key to the realisation of thehydrogen economy however, national interest needs tobe protected
In order for South Africa to realise the full benefits of the hydrogen economy
international partnerships are critical. Internationalisation and partnerships
are embedded within each of the focus areas of the IEA Policy Framework.
For instance, under harmonisation of standards and removing barriers, theparticipation of South Africa in international forums such as the International
Partnership for Hydrogen and Fuel Cells in the Economy (IPHE) task teams
on hydrogen certification, hydrogen trade rules and hydrogen carriers, will be
critical to ensure that South African green hydrogen conforms to international
standards. International partnerships will also be critical to support the scaleup of training of a future workforce in the hydrogen economy as well as RDI
programmes that seek to reduce the cost of hydrogen-related technologies
in various applications.

SECTIONAUNDERSTANDING SOUTH
AFRICA’S HYDROGENOPPORTUNITYHYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

1SECTION A: UNDERSTANDING SOUTH AFRICA’S HYDROGEN OPPORTUNITY

1.

SOUTH AFRICA’S CURRENT ENERGY LANDSCAPESouth Africa is facing the challenge of securing clean, affordable andsustainable energy to power its economy and to contribute to thetransition to a climate-neutral society. A clean energy future is seen asa critical enabler of inclusive and transformational economic growthand development.
South Africa’s NDP 20301 advocates for increased investment in an energy
sector that is both economically inclusive and environmentally sustainable.
The plan identifies, as a priority, the production of sufficient energy to support
industry at competitive prices, ensuring access for poor households, while
reducing the carbon intensity of the economy.

In its quest to reduce emissions from the energy mix, South Africa developed
the REIPPPP. This programme has, to date, supported the implementationof 5 GW of operational renewable electricity-generation capacity, which in2020 accounted for 5.6% of South Africa’s domestic electricity demand.2
Although coal remains the country’s primary source of energy, the REIPPPP
heralds an important shift to clean energy production. Further significant
commitments towards integrating RE in the power sector have been outlinedin the IRP 2019.3 The transition from a carbon-based energy system with
substantial dependence on coal to a sustainable, clean and affordable energy
system based on RE resources is a priority for South Africa as it pursues both
economic prosperity and its international climate commitments.

1.1 SOUTH AFRICA’S ENERGY SUPPLY AND DEMAND
Figure 1.1 depicts a Sankey representation of energy supply and demand for
the South African economy. The figure highlights the dependency on coal andoil products as primary sources of energy: these comprised approximately
90% of primary energy supply in 2017, with coal accounting for 75%. Theinterdependency of coal exports and crude-oil imports is also illustrated.

1.
2.
3.
4.

Revenue from coal exports essentially balances expenditure on imported oil
products: historically, crude and refined petroleum product represents South
Africa’s largest import burden, accounting for 15-20% of total merchandise
imports.4

Government of South Africa, National Planning Commission, National Development Plan 2030, gov.za/issues/national-development-plan-2030.
Council for Scientific and Industrial Research (CSIR), Statistics of utility-scale power generation in South Africa in 2020, 2021, researchspace.csir.co.za/dspace/handle/10204/11865.
DMRE, Integrated Resource Plan (IRP2019), http://www.energy.gov.za/IRP/2019/IRP-2019.
Industrial Development Corporation (IDC), 2021, “Economic Trends: Key trends in the South African economy”. https://www.idc.co.za/wp-content/uploads/2021/04/IDC-RI-publication-Key-Trends-in-theSouth-African-Economy-31-March-2021-FINAL.pdf

2

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONSECTION A: UNDERSTANDING SOUTH AFRICA’S HYDROGEN OPPORTUNITY

1. SOUTH AFRICA’S CURRENT ENERGY LANDSCAPE (CONTINUED)

SOUTH AFRICA'S ENERGY BALANCE (2017)
Exports

Units: Petajoules

Electricity: 55 PJ

al:

Co

Liquid fuels: 124 PJ
Coal: 358 PJ

Coal: 1187 PJ

Coal: 5230 PJ

Gas: 25 PJ

Gas: 151 PJ

Gas: 177 PJ

Electricity:

J

PJ
32
7

Nuclear: 170 PJ

17

Crude Oil: 779 PJ

7P

71

l: 1

J

Refineries

Liquid fuels: 736 PJ

Transport
Liquid fuels: 869 PJ

PJ

Liquid fuels: 164 PJ

Biomass

Liquid Fuels

Coal

Gas

Hydro

Electricity

Wind

Coking Coal

Crude Oil

NuclearBiodiesel

Bioethanol

Figure 1.1: South African energy flow in 2017
Source: UCT 20205

1.2

Grid Losses

PJ

ls:

33 PJ

Electricity: 123 PJ

Electricity: 461 PJ

1

ue

oa
gc
kin

Co

785
Liq PJ
uidfElectricity: 833 PJ

1
y:
cit

oil:

Liquid fuels: 221 PJ

Electricity: 805 PJ

i
ctr
Ele

de

Electricity
Generationty:

Hydro: 3 PJ

Liquid fuels: 85 PJ

trici

Electricity: 37 PJ

Commerce,
residential & other

Ele
c

PJ

Synfuels

Coal: 786 PJ

y: 3
28
P

Gas: 78 PJ

Gas: 25 PJ

Cru

Biomass: 82 PJ

ctr
icit

r: 19
PJ
Wi
nd:
23

Imports

Liquid fuels: 38 PJ

Biomass: 123 PJ

Sola

Renewables& Biomass

Industry

Gas: 74 PJ

Coal: 2316 PJ

EleExtraction

J

7P

172

Solar

1%

SOUTH AFRICA’S ENERGY INFRASTRUCTURE
5%The dominant role of coal and oil in South Africa’s energy supply is reflectedin the supply and distribution infrastructure. Electricity generation, for whichcoal accounted for 79% in 2020, is dominated by the state utility, Eskom(Figure 1.2). Eskom’s nominal generation capacity comprises around 38 GW
of coal, 1.9 GW of nuclear, 3.3 GW of hydro/pumped storage, 3.4 GW of
open-cycle gas turbines6 and less than 1 GW of non-dispatchable RE.

10%

5%

79 %

Coal

Nuclear

VRE (Wind/Solar)

DieselRE (Hydro)

Figure 1.2: South Africa’s electricity supply mix by key technology
Source: CSIR 2020
5.
6.

University of Cape Town, Technical analysis to support the update of South Africa’s first NDC’s mitigation target ranges, 2021, doi.org/10.25375/uct.16691950.
Open-cycle gas turbines that consume diesel and kerosene.

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

3

SECTION A: UNDERSTANDING SOUTH AFRICA’S HYDROGEN OPPORTUNITY

1. SOUTH AFRICA’S CURRENT ENERGY LANDSCAPE (CONTINUED)

The IRP 2019 maps the future expansion of the electricity system.
RE generation is expected to comprise a significant and competitive share of
the generation portfolio by 2030, and potentially be the primary electricity
source by 2050, mirroring the present-day dominance of coal. Figure 1.3
reflects the planned energy mix of the country as set forth in the IRP 2019 to2030, and extended to 2050 by the CSIR.9 The IRP 2019 indicates that coal
will continue to play a significant role in electricity generation in South Africa
in the near future, as it is the largest base of installed generation capacity.
However, coal generation decreases to 43% of the energy mix due to theplanned decommissioning of coal plants from 2019 to 2023 and from 2026
to 2030. Notable is the increase in solar and wind, making up a combined
share of 34% of the energy mix by 2030.

In addition to Eskom’s portfolio, the REIPPPP has added another 5 GW ofvariable RE to the national portfolio, largely wind (2.5 GW) and solar PV(2 GW). The REIPPPP has to date contracted a total of 6.4 GW of capacity,with a further allocation of 1 GW of solar PV and 1.6 GW of wind having
been recently promulgated.7
In 2012, the average age of the South African coal-powered stations
was placed at 30 years, and some plants were reported to have alreadyreached 300% of their design life.8 Many power stations will thus need to be
decommissioned over the next three decades. Based on information from
Eskom, the Department of Mineral Resources and Energy (DMRE) reportsthat by 2030, 9.6 GW of existing capacity will be decommissioned, with lessthan 10 GW of existing capacity still in operation by 2050.

Figure 1.3: Planned South African energy mix extended to 2050
Source: CSIR 2020

Number of patents

Two key technical aspects of a transition to an electricity supply systemcharacterised by variable or intermittent generation are the geographical shift
4 500
in production zones, and the requirement
for network balancing to maintain+123%
the stabilityof the transmission and distribution system. Eskom Currently
4 000
functions as the system operator, and owns and operates the transmission
3 500

and distribution networks outside those owned and managed by large
municipalities. The growth of RE will require further enhancement of thetransmission system, as shown in Figure 1.4, to accommodate the increasingly
distributed footprint of the electricity supply system.
+81%
+108%

3 000
2 500
2 000
1 500
1 000

7.

 ept. Mineral Resources and Energy (DMRE), Renewable Energy Data and Information Service: Location and Contracted Capacities, 2021, redis.energy.gov.za/power-producers/; DMRE, Independent Power ProducerD
Procurement
Programme: Bid Window, 2021. https://www.ipp-renewables.co.za.
500
Eskom, Opportunities and considerations for power plant refurbishment and upgrades, 2012, energy.gov.za/files/4thEUSouthAfricaCleanCoalWorkingGroup/Eskom%20Refurbishment%20N%20Volk.pdf.
Council for Scientific and Industrial Research (CSIR), Systems analysis to support increasingly ambitious CO2 emissions scenarios in the South African electricity system, 2020, researchspace.csir.co.za/dspace/bitstream/0
handle/10204/11483/Wright_2020_edited.pdf.

8.
9.

Production
4

Storage and Distribution

Utilisation

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

2010

2015

2019

SECTION A: UNDERSTANDING SOUTH AFRICA’S HYDROGEN OPPORTUNITY

1. SOUTH AFRICA’S CURRENT ENERGY LANDSCAPE (CONTINUED)

Figure 1.4: Generation and transmission capacity expected in 2030
Source: Eskom 2021

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

5SECTION A: UNDERSTANDING SOUTH AFRICA’S HYDROGEN OPPORTUNITY

1. SOUTH AFRICA’S CURRENT ENERGY LANDSCAPE (CONTINUED)

As shown in Figure 1.4, over 2 GW of battery storage is planned by 2030, in
combination with natural-gas-fuelled turbines to provide network stability.10
Natural gas is primarily imported from Mozambique. Domestic production,
offshore in the Eastern Cape, is estimated at 17% of domestic demand(26 PJ), with the remainder sourced from the ROMPCO pipeline via Sasol,the country’s largest integrated fuels-and-chemicals producer.

Figure 1.5 highlights the current reliance of the existing fuels-and-chemicals
complex on imported natural gas, with a third of the gas retailed externally tocommercial and industrial users.

NATURAL GAS SUPPLY
MOZAMBIQUE SALES
23.2.6 bcf

SOUTH AFRICA
191.4 bcf
SASOL INTERNAL USE
109.9 bcf

MOZAMBIQUE PRODUCTION
166.6 bcf

PETROSA
24.7 bcf

143.4 bcf

OTHER
56.8 bcf

48 bcf

DOMESTIC PRODUCTION
48 bcfMETHANE RICH GAS
23.3 bcf
NATURAL GAS
24.7 bcf

References:
PetroSA, 2018, "Integrated Annual Report",
Sasol, 2017,"Additional Analyst Information"

Figure 1.5: Natural gas supply from Mozambique
Source: Sasol 2017
Sasol operates both gas-to-liquids (GTL) and coal-to-liquids (CTL) synfuelfacilities, with coal representing the majority share of feedstock (Figure 1.1).
Excluding the electricity sector, the CTL facility is responsible for 60% of total
domestic coal consumption (approximately 40 Mt per annum), with almost
two-thirds consumed as feedstock in the synfuel process to produce fuels andchemicals, and the remainder utilised for captive power.The CTL process also
produces nature-identical methane-rich gas, complementing the gas sourced
from Mozambique. Prior to the recent closure of one of South Africa’s major
crude-oil refineries, the CTL facility was responsible for approximately 25% of
locally-produced refined liquid oil product (diesel, petrol and jet fuel).
Approximately 95% of liquid fuel demand is consumed by the transport
sector. In 2017, 12.1 billion litres of diesel were consumed, followed by petrol
and jet fuel at 11.2 and 2.7 billion litres respectively.11 Although in 2017 therequirement for diesel for the power sector amounted to approximately
10 million litres, historically, electricity generation has consumed in excess

10.
11
12
13

of 1 billion litres per annum to alleviate the power outages that continue toplague the country and exacerbate the need for diesel.12 Demand for liquid
fuels is met by both imported refined product and crude oil via domestic
refineries. Regional exports of petrol, diesel and jet fuel each amount toapproximately 10% of the total product inventory. Demand for petrol and jet
fuel is mostly met by domestic production (more than 90%), while a third ofdiesel demand requires importation.
Liquid fuels infrastructure in South Africa currently consists of five refineries.
There are three crude-oil refineries with a combined nominal capacity of 388
000 barrels per day (bpd), the CTL refinery (Secunda) with an oil-equivalent
nominal capacity of 150 000 bpd, and a GTL refinery (Mossel Bay) operated
by the Petroleum Oil and Gas Corporation of South Africa (PetroSA) witha nominal capacity of 45 000 bpd.13 Figure 1.6 shows these in relation to themajor liquid fuel and gas pipelines.14

Eskom, Eskom Transmission Development Plan (TDP) 2021-2030, 2020, eskom.co.za/wp-content/uploads/2021/08/TDP_2020_-Public_Forum_Presentation_20_Oct2020_Final_Rev1.pdf.
South African Petroleum Industry Association, Annual Report, 2018.
Eskom, Fuel consumption, eskom.co.za/OurCompany/SustainableDevelopment/Pages/CDM_Calculations.aspx.
The Engen refinery located in eThekwini (Durban) with a nominal capacity of 135 000 bpd was retired in early 2021 with the intention to convert to an import terminal; engineeringnews.co.za/article/engento-shut-refinery-and-repurpose-kzn-site-as-an-import-terminal-2021-04-23; the National Petroleum Company of South Africa was recently inaugurated following the merger of PetroSA with other Central
Energy Fund subsidiaries.
14 Transnet, Transnet Long Term Planning Framework: Pipeline Development Plan, 2017, transnet.net/BusinessWithUs/Pages/LTPF.aspx.

6

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONSECTION A: UNDERSTANDING SOUTH AFRICA’S HYDROGEN OPPORTUNITY

1. SOUTH AFRICA’S CURRENT ENERGY LANDSCAPE (CONTINUED)

Figure 1.6: Refineries and major existing and planned oil and gas pipelines
Source: Transnet 2017
Regarding the future supply of liquid fuels, the country is at a crossroads.
The crude-oil refineries produce Euro-2 standard fuel; however, the DMRE
recently gazetted regulations enforcing improved fuel-quality standards,
known as “Cleaner Fuels Phase 2”, which aim to raise the fuel standard
to Euro-5 to improve air quality and permit more fuel-efficient vehicles tooperate domestically.15 Key strategic decisions are required in the near term:
to invest in refurbishing the existing refineries, which are uncompetitive at
global scale; to retire domestic production and switch to imports; or to invest
in a new, larger refinery (400 000 bpd) in the Richards Bay area.
Figure 1.6 highlights future import terminals and pipelines that would
increase the share of natural gas as a primary energy source. Recent offshore
discoveries of indigenous gas fields (Brulpadda and Luiperd), near the existing
Mossel Bay complex, present additional prospects for expanding the existing
power-sector infrastructure. Open-cycle gas turbines at Ankerlig (SaldanhaBay), Gourikwa (Mossel Bay), Avon (Durban) and Dedisa (Coega IDZ),
currently consuming diesel, could switch to gas and be converted to moreenergy-efficient combined-cycle gas turbines.16

The IRP 2019 states that gas-to-power technologies will provide the flexibility
required to complement RE. It also notes that new gas resources – suchas the Brulpadda field, Rovuma basin in Mozambique, and indigenous gaslike coal-bed methane – could form a central part of South Africa’s strategy
for regional economic integration in the Southern African Development
Community (SADC).17
The National Planning Commission’s Energy Paper notes that natural gas
currently plays a relatively small role in the South African energy mix as a resultof limited domestic availability, with a fraction (less than 20%) originating fromdomestic offshore production.18 South Africa is considering cooperation withneighbouring countries in this regard, and partnerships are being put in place
for joint exploitation and beneficiation of natural gas within the SADC region.
The SADC is developing a Gas Master Plan to identify short- and long-term
infrastructure requirements to enable the uptake of a natural-gas market.This
additional infrastructure may also potentially cater for an increasing role forhydrogen in the SADC region, in both export and domestic contexts.

15. Department of Mineral Resources and Energy (DMRE), Regulations regarding petroleum products specifications and standards for implementation. Government Gazette 45068, 2021, energy.gov.za/files/policies/
petroleum/Gazette45068-Regulations-Regarding-Petroleum-Products-Spec-Stds-for-Implementation.pdf.
16. Ibid.
17. Ibid.
18. National Planning Commission, Economy Series Energy, 2018, gov.za/sites/default/files/gcis_document/201802/npc-energy-paper.

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

7SECTION A: UNDERSTANDING SOUTH AFRICA’S HYDROGEN OPPORTUNITY

1. SOUTH AFRICA’S CURRENT ENERGY LANDSCAPE (CONTINUED)

1.3 SOUTH AFRICA’S EXISTING
ENERGY POLICIES AND
STRATEGIESThe South African energy landscape is governed by a range of policies andstrategies. The 1998 White Paper on Energy Policy provides the framework
for regulating energy supply and demand, with the objectives of ensuring
energy access, energy governance, stimulating economic development,
managing energy-related environmental impacts, and securing supply throughdiversity.19 It recognises the role of RE in addressing environmental challenges,
and in meeting supply in areas not connected to the grid, alongside theongoing use of fossil fuels in the energy mix. Hydrogen commands one brief
mention in this document, developed at a time when hydrogen was not at theforefront of energy planning. The 2003 White Paper on Renewable Energy
Policy built on the high-level intentions regarding RE in the 1998 White
Paper, setting a 2013 target for RE in power generation and non-electric
applications.20 Hydrogen is again briefly mentioned as a potential futuretechnology. Neither of these documents has been updated subsequently. The
2008 National Energy Act provides a legal framework for governing various
aspects of the energy landscape in South Africa, including those related tosupply and demand.21
The instrument that provides detailed information to guide planning of theoverall energy mix for the country is the IEP.22 The requirement for the
preparation of the IEP was identified in the White Paper on Energy Policy,
with the National Energy Act of 2008 further defining its objectives. In thedevelopment of the IEP, current energy supply-and-demand trends in different
sectors of the economy and across all energy carriers, along with assumptions
about future demand and technology evolution, was used to project futureenergy requirements in a variety of scenarios. These included scenarios withemissions caps and different carbon prices. A draft IEP was issued in 2016 aspart of the process to update 2003 IEP version. The IEP update is critical toguiding overall energy planning for the country, including the developmentof hydrogen.
The IRP 2019 specifies the build plan for the electricity sector specifically,
providing a mechanism for Government to drive diversification of theelectricity-generation mix and to promote RE and other low-carbon

19.
20.
21.
22.
23.
24.
25.
26.
27.

technologies.23 Developed using a least-cost optimisation model with carbon
constraints, among others, the IRP details the contribution of RE and nonRE technologies up to 2030, as well as forecasts of demand to 2050. The
IRP 2019 therefore includes a schedule for decommissioning Eskom’s power
stations.The electricity supply involving hydrogen does not feature explicitly in
the IRP, although mention is made of its potential role in energy storage, andthe need to support ongoing hydrogen research and development (R&D) in
South Africa.
In addition to instruments that have energy as their primary focus, othernational instruments have implications for the energy sector, and thus for
implementation of the HSRM. Policy and legislation that seek to address
the climate challenge is discussed in Section 1.5 below. The NDP’s overall
objective is to eliminate poverty and reduce inequality by 2030.24 Chapter
4 of the NDP focuses on infrastructure, including energy infrastructure,noting the need for diversification of energy supply. The NDP also highlights
climate-change impacts and mitigation as critical issues to be addressed. The
Department of Transport’s (DoT) Green Transport Strategy (GTS 2018)
explores in detail the potential future role of hydrogen fuel cells in various
applications in the transport sector.25
The Minerals Beneficiation Strategy focuses on the need for downstream
beneficiation of South Africa’s mineral resources, noting the potential for fuelcell production.26 The National Industrial Policy Framework (NIPF), adopted
as a broad framework governing industrial policy, articulates the approach toindustrial development. The Industrial Policy Action Plan (IPAP) represents
the implementation plan for the NIPF. The most recent revision of the IPAP,
which covers the period 2018/2019 to 2020/2021, provides updates on
key focus areas in the industrial sector, including green-industry investment.
Particularly relevant are the focus areas of developing a policy roadmap forclimate-compatible industrial development, and support for fuel-cell industry
development. Finally, the HySA Strategy, approved by Cabinet in 2007, and theassociated 15-year HySA Programme, focus on beneficiation of PGM throughthe development of HFCT.27

DMRE, White Paper on the Energy Policy of the Republic of South Africa, 1998, energy.gov.za/files/policies/whitepaper_energypolicy_1998.
Ibid.
Republic of South Africa, National Energy Act, 2008, gov.za/sites/default/files/gcis_document/201409/316381263.pdf.
Department of Energy, Integrated Energy Plan, 2016, energy.gov.za/files/IEP/2016/Integrated-Energy-Plan-Report.
DMRE, Integrated Resource Plan (IRP2019).
National Planning Commission, National Development Plan 2030, nationalplanningcommission.org.za/assets/Documents/ndp-2030-our-future-make-it-work.pdf.
DoT, GTS for South Africa: (2018-2050), transport.gov.za/documents/11623/89294/Green_Transport_Strategy_2018-2050_onlineversion.pdf/71e19f1d-259e-4c55-9b27-30db418f105a.
Department of Mineral Resources, A Beneficiation Strategy for the Minerals Industry of South Africa, 2011, gov.za/sites/default/files/gcis_document/201409/beneficiation-strategy-june-2011-final-30.pdf.
Department of Science and Technology, Hydrogen South Africa (HySA) Strategy, 2007.

8

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONSECTION A: UNDERSTANDING SOUTH AFRICA’S HYDROGEN OPPORTUNITY

1. SOUTH AFRICA’S CURRENT ENERGY LANDSCAPE (CONTINUED)

1.4 THE ENERGY-SECTOR STAKEHOLDERS
Table 1.1 presents an overview of the Government departments, state-owned entities and private companies that play a role in the energy sector in South Africa,
and that may be impacted by the implementation of the HSRM.
Table 1.1: Key roleplayers and their mandates

ROLE PLAYERMANDATE RELEVANT TO THE HSRM

GOVERNMENT DEPARTMENTS AND REGULATORS
Department of Mineral
Resources and Energy(DMRE)

Custodian of policy and planning for the energy sector, focusing on energy security throughdiversifying the country’s energy mix to include RE sources.

National Energy Regulator ofSouth Africa (NERSA)

Regulates the energy sector in the context of national policy and planning, licenses newenergy infrastructure and regulates electricity and hydrocarbons-infrastructure tariffs.

National Treasury

Governs fiscal and procurement policies.

Department of Transport(DoT)

Leads the implementation of the Green Transport Strategy 2018.

Department of Trade,Industry and Competition(DTIC)Develops local industries and trade with particular focus on green industries and job creation;
works to attract foreign investment.

Department of PublicEnterprises (DPE)As the main shareholder, the DPE provides oversight to Eskom, the sole power off-taker

Department of Public Worksand Infrastructure (DPWI)

With a portfolio of more than 500 000 buildings in the public sector, has developed the
Public Works and Infrastructure Green Building Policy with a focus on deploying green
technologies in public buildings.

Department of Forestry,
Fisheries and theEnvironment (DFFE)

Sustainable development and environmental integrity; grants environmental authorisations interms of the National Environmental Management Act (NEMA).

Department of Science andInnovation (DSI)

Custodian of national research, development and innovation focused on new energy
technologies; has implemented the Hydrogen South Africa Strategy since 2008.

Provincial departments andmunicipalities

Regulates private RE generation (embedded generation) through by-laws and policies.
Responsible for procurement of energy services.

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

9SECTION A: UNDERSTANDING SOUTH AFRICA’S HYDROGEN OPPORTUNITY

1. SOUTH AFRICA’S CURRENT ENERGY LANDSCAPE (CONTINUED)

ROLE PLAYERMANDATE RELEVANT TO THE HSRM

STATE-OWNED ENTITIES

Eskom

National electricity-supply utility and single buyer for renewables from the REIPPPP.

Central Energy Fund (CEF)

Contributes to the security of energy supply of South Africa through exploration,acquisition, development, marketing and strategic partnership.

South African National
Energy Development
Institute (SANEDI)

Promotes energy research and technology innovation, supports green energy andenergy-efficiency uptake.

Industrial Development
Corporation (IDC)

Development finance institution (DFI) providing finance for industrialisation projects.

PetroSA (now incorporated
into the South African
National Petroleum
Company)

National oil company with interests along the oil and gas value chain. Activities include
exploration, production of liquid fuels from gas through the gas-to-liquids process,development of logistical infrastructure, and marketing and trading of products.

PRIVATE COMPANIES

Sasol

Producer of liquid fuels and chemicals via coal-to-liquids and gas-to-liquids processes.
Has signalled an intention to develop hydrogen-based infrastructure.

Engen, BP, Shell, AstronEnergyOwners of crude-oil refineries and distribution channels for refined product.

OTHER

Academic institutions andscience councils

10

RDI linked to all stages of the hydrogen value chain.

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONSECTION A: UNDERSTANDING SOUTH AFRICA’S HYDROGEN OPPORTUNITY

1. SOUTH AFRICA’S CURRENT ENERGY LANDSCAPE (CONTINUED)

1.5 THE GREENHOUSE GAS (GHG)
LANDSCAPE
The 2015 PA emphasised the urgency of “holding the increase in the
global average temperature to well below 2°C above pre-industrial levels
and pursuing efforts to limit the temperature increase to 1.5°C above preindustrial levels”.28 In 2018, the Intergovernmental Panel on Climate Change(IPCC) produced the Special Report on Global Warming of 1.5°C. The
report states that the planet is already experiencing climate impacts, and thatthese will be significantly worse at 2°C than at 1.5°C. It further emphasisesthat global carbon dioxide (CO2) emission pathways consistent with keeping
global temperature within the 1.5°C limit require rapid global emissions
reductions of 45% by 2030 (in relation to 2010 levels), and reaching net-zero
CO2 emissions by 2050.29
South Africa is the world’s 14th largest emitter of GHGs, particularly CO2emissions, due to its heavy reliance on coal. As a signatory to the PA, South
Africa signalled its intent to decarbonise its coal-centric economy, ratifying
its first Intended Nationally Determined Contribution (INDC) in 2016.30 In
accordance with Article 4.9 of the PA, which requires a Nationally Determined
Contribution (NDC) submission every five years to monitor the progressof implementation, South Africa submitted its updated NDC to the United
Nations Framework Convention on Climate Change (UNFCCC) in 2021.31

The NDC provides the basis for monitoring the progress of emissions
reductions and establishing equitable carbon budgets for the medium term
(to 2030).
The National Climate Change Response White Paper (NCCRP), Carbon Tax
Act and Climate Change Bill recently tabled before Cabinet are three key
legislative documents that outline South Africa’s response to climate change(Table 1.2).32 The NCCRP serves as a foundation for the Climate Change Bill,
which underpins the regulatory landscape for managing emissions.The Bill willplace emissions caps on sectors and companies, and thus provide a further
driver for the adoption of RE alternatives. The Carbon Tax Act institutes taxes
on emissions from certain activities, including electricity generation.
Additional fiscal instruments in the form of environmental levies for electricity
generation and vehicles also exist. Eskom charges an environmental levy
for electricity generation from fossil fuels, which funds its demand-side
management programme. The vehicle emissions or environmental levy isdesigned to promote the sale of low-carbon-emission vehicles. It applies
to new-vehicle purchases and is based on the manufacturer’s advertised
CO2 intensity.

Table 1.2: Key climate change policy documents

POLICY/PLAN
White Paper on National
Climate Change Response
2011

KEY ASPECTS•

Addresses both mitigation and adaptation in the short, medium and long term (upto 2050).

•

Manages inevitable climate-change impacts through interventions that build andsustain social, economic and environmental resilience.

•

Makes a fair contribution to the global effort to stabilise GHG concentrations in
the atmosphere.

•

Taxes a wide range of activities across the economy.

Carbon Tax Act, 2019•

Allocates various allowances to reduce the tax burden, although these will fall awayover time.

Nationally Determined
Contribution 2020•

Revision of original submission for a 2030 mitigation target range, from 398-614 Mt
CO2e to a range of 350-420 Mt CO2e (reviewed every five years).

•

Uses the best available science to decarbonise the economy in a manner that
reduces the socioeconomic vulnerability of the population.

•

Enhances the capacity of society, the environment and the economy to adapt to
the impacts of climate change.

•

Allocates carbon budgets (at five-yearly periods) to activities that generate GHG
emissions.

•

Levy administered by Eskom for electricity generated from fossil fuels.

•

Currently an offset against the carbon-tax liability is applicable.33•

Levy administered by the South African Revenue Service on new-vehicle purchases;
based on the CO2 emissions intensity of the vehicle.

Climate Change Bill 2021

Electricity environmental
levy

New-vehicle emissions levy

28.
29.
30.
31.

United Nations Framework Convention on Climate Change (UNFCCC), The Paris Agreement, unfccc.int/process-and-meetings/the-paris-agreement/the-paris-agreement.
Intergovernmental Panel on Climate Change (IPCC), Global Warming of 1.5°C: An IPCC Special Report, 2018, ipcc.ch/sr15.
Intended Nationally Determined Contribution (INDC) were subsequently rephrased to Nationally Determined Contribution (NDC).
Department of Forestry, Fisheries and Environment (DFFE), South Africa’s updated Nationally Determined Contribution (NDC), 2021, nfccc.int/sites/ndcstaging/PublishedDocuments/South%20Africa%20First/
South%20Africa%20updated%20first%20NDC%20September%202021.pdf.
32. Department of Environmental Affairs (DEA), South Africa’s National Climate Change Response Policy, 2011, environment.gov.za/sites/default/files/legislations/national_climatechange_response_whitepaper.
33. National Treasury, Explanatory memorandum on the carbon tax bill, 2018.
HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

11SECTION A: UNDERSTANDING SOUTH AFRICA’S HYDROGEN OPPORTUNITY

1. SOUTH AFRICA’S CURRENT ENERGY LANDSCAPE (CONTINUED)

South Africa’s INDC articulated South Africa’s commitment to reducing
GHG emissions as the “peak, plateau and decline (PPD) trajectory”, as did
the NCCRP. The PPD currently represents the benchmark against which
South Africa’s mitigation efforts are measured. The revised NDC submission,
however, expresses the updated commitment against two points in timerather than a trajectory; it suggests that national emissions in 2025 will bein the range of 398-510 Mt CO2e, and between 350-420 Mt CO2e in 2030.
South Africa’s commitment to the PA on climate change will require
collaboration between Government and business to achieve its statedcarbon-reduction goals. The country’s GHG emissions are currently
dominated by energy industries that emit 410.7 Mt CO2e, or 80% of theofficial GHG inventory of 512.7 Mt CO2e (excluding natural land sinks).34
Within the energy sector, power generation constitutes the major shareat 216.5 Mt CO2e (42%), followed by transport at 54.7 Mt CO2e (11%).35
The two sectors represent the two major emissions sources in the country.
Within the transport sector, road transport is responsible for 96% oftransport emissions, with heavy-duty road freight comprising approximately

20% of road-transport emissions.36 Notably, coal liquefaction, primarily for the
production of transportation fuels, is another key source of emissions in theenergy sector (10%).
Industrial processes further contributed an additional 32.1 Mt CO2e in 2017(6.3%), with ferroalloys and iron and steel, the predominant sectors, emitting
11.3 Mt CO2e and 7.7 Mt CO2e respectively.
The continued reliance on fossil fuels, and the domestic coal endowmentin particular, has resulted in a GHG-emissions-intensive economy that, at
1.4 kt CO2e per USD GDP, is currently more than double the G20 andglobal average37, which has also surpassed the BRICS economic group in
recent years.38 As shown in Figure 1.7, the carbon intensity of South Africa’s
economy has exhibited a general decline for the period 2000 to 2017.
However, to meet international obligations to mitigate the environmental
and socioeconomic costs arising from climate change, dramatic reductions in
GHG emissions are required.

2017

2016

Carbon intensity of energy supply

Carbon intensity of economy(t CO2e/capita)(t CO2e/toe)(t CO2e/Mill. GDP ZAR)

The national inventory for 2017 amounts to 482,016 GgCO2e when land sinks are included.
DFFE, National GHG Inventory Report South Africa 2017, 2021, environment.gov.za/mediarelease/creecy_greenhouse-gas-inventory_report.
University of Cape Town, Technical analysis to support the update of South Africa’s first NDC’s mitigation target ranges, 2021, doi.org/10.25375/uct.16691950.
ClimateWatch, Historical GHG Emissions, 2018. https://www.climatewatchdata.org.
BRICS is the term to describe the group of major emerging markets comprising Brazil, Russia, India, China and South Africa.

12

2015

Carbon intensity of population

Figure 1.7: Trends in carbon-intensity indicators for South Africa between 2000 and 2017
Source: National Inventory Report 2017, DFFE

34.
35.
36.
37.
38.

2014

2013

-

2012

0.0

2011

50.0
2010

2.0
2009

100.0

2008

4.0

2007

150.0

2006

6.0

2005

200.0

2004

8.0

2003

250.0

2002

10.0

2001

300.0

2000

12.0

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONSECTION A: UNDERSTANDING SOUTH AFRICA’S HYDROGEN OPPORTUNITY

1. SOUTH AFRICA’S CURRENT ENERGY LANDSCAPE (CONTINUED)

1.6 AIR QUALITY
According to the World Health Organisation (WHO)39, air pollution is one of
the biggest environmental threats to human health, alongside climate change,
and causes seven-million premature deaths each year. The main constituentsof poor air quality include particulate matter, ozone, nitrogen dioxide, sulphur
dioxide and carbon monoxide. The WHO notes that through the reductionof air pollution levels, countries can reduce the burden of disease from stroke,heart disease, lung cancer and both chronic and acute respiratory diseases,
including asthma. In this regard, WHO has revised the guideline for annual
average exposure to PM2.5 (particles smaller than 2.5 micron in diameter)from 10 to 5 micrograms per cubic metre, while the annual limit has been
reduced from 40 to 10 micrograms per cubic metre for nitrogen dioxide.

As part of monitoring the extent of pollution in the country, the DFFE monitors
the air quality in terms of Section 18(1) of the National Environmental
Management: Air Quality Act No 39 of 2004 (NEM: AQA). Studies showthat industrial activity, domestic fuel burning, waste burning and mining
activities are some of the main contributors to poor air quality. Following theassessment of national air quality data, DFFE classified some highly polluted
areas as National Priority Areas. The three priority areas, which are located inGauteng, Mpumalanga and North West provinces, respectively, are:•Vaal Triangle-Air shed Priority Area in 2006;•

Highveld Priority Area in 2007; and•Waterberg-Bojanala Priority Area in 2012.

The air quality in Mpumalanga is of particular concern as the province is home
to 12 Eskom coal-fired power stations, a Sasol plant and a NatRef refinery.

39. https://mg.co.za/tag/world-health-organisation/.

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DEPARTMENT OF SCIENCE AND INNOVATION

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SECTION A: UNDERSTANDING SOUTH AFRICA’S HYDROGEN OPPORTUNITY

2.

SOUTH AFRICA’S OPPORTUNITY TO BECOME A SIGNIFICANT
PLAYER IN THE HYDROGEN MARKET

Adhering to the PA requires a variety of solutions to reduce
GHG emissions, particularly for sectors in which emissions havetraditionally been hard to abate, such as transport and industry.
Hydrogen has emerged as one of these solutions, due to its zeroemission output at the point of application and its flexible production
pathways, which include production from RE with virtually zerocarbon emissions. The potential for hydrogen to make a significant
impact on the global economy has been articulated previously,
although a large-scale hydrogen economy is yet to materialise at theenvisaged pace and scale. However, recent reports suggest that theopportunity presented by hydrogen is starting to become a reality.40

2.1 GLOBAL TRENDS IN HYDROGEN
Hydrogen is currently produced and consumed widely in industrial processes,
such as in ammonia production and oil refining. Hydrogen is also a versatileenergy carrier and can be produced from carbon-emitting fossil fuels such ascoal and natural gas, as well as from clean, renewable resources such as solar
and wind (Table 2.1).

Table 2.1: Hydrogen production methods and associated carbon footprints

CATEGORIESGrey hydrogen

DESCRIPTION•

Produced from fossil fuels (coal, natural gas). Emits carbon through coal gasification
with a carbon-capture system or via electrolysis.

•

Considered dirty, even though this hydrogen produces zero emissions at point ofuse.

•

Produced from fossil fuels, with carbon emissions reduced by the use of Carbon
Capture Utilisation and Storage (CCUS). Includes hydrogen produced as a byproduct through processes such as chlor-alkali.

•

Lower greenhouse gas emissions than grey hydrogen.

•Produced using nuclear energy.

•

Lower emissions than both grey and blue hydrogen.

•Produced from thermal splitting of methane, which produces solid carbon rather
than carbon dioxide. The heat for the high temperature reactor is produced fromrenewable or carbon-neutral energy sources.

•

Produced using RE sources with zero emissions, such as by water electrolysis.

•

Seen as holding the most significant promise for decarbonisation.

Blue hydrogen

Pink/Purple hydrogen

Turquoise hydrogen

Green hydrogen

40. International Energy Agency, The future of hydrogen: Seizing today’s opportunities, 2021, iea.org/reports/the-future-of-hydrogen; Hydrogen Council, Hydrogen scaling up: A sustainable pathway for the global energy
transition, 2017, hydrogencouncil.com/wp-content/uploads/2017/11/Hydrogen-scaling-up-Hydrogen-Council.pdf.

14

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONSECTION A: UNDERSTANDING SOUTH AFRICA’S HYDROGEN OPPORTUNITY

2. SOUTH AFRICA’S OPPORTUNITY TO BECOME A SIGNIFICANT PLAYER IN THE HYDROGEN MARKET (CONTINUED)

Near-term production costs of renewable hydrogen are currently highcompared to fossil-fuel alternatives. Costs for producing green hydrogen
range between USD3 and USD6 per kg, while fossil alternatives range
between USD1 and USD2 per kg.41 Climate-oriented policies, including
NDC submissions, are expected to amplify demand for green hydrogen. In
the medium to long term (2030-2050), the projected scaling of electrolyser
capacity, along with a suite of alternative low-cost production routes anddeclining electricity costs, is expected to realise production costs competitive
with present day fossil-based production.42 However, the trajectory of
declining costs is dependent on the stimulus provided by governments todrive demand via, for example, instruments such as carbon taxes or cleanproduction credit schemes.43
Many countries, including South Africa, have seen a reduction in the costsof RE and hydrogen technologies due to a significant increase in scale andinvestment in RDI. This has resulted in an 80% reduction in the global average
price of RE, and a significant ramping up of global electrolysis capacity aimed
at the production of green hydrogen.44 The International Renewable Energy
Agency has stated that “a combination of cost reductions in electricity andelectrolysers, combined with increased efficiency and operating lifetime, candeliver 80% reduction in hydrogen cost”.41
An increasing number of countries are ramping up investments in hydrogen, andsome have launched a series of hydrogen-energy and technology roadmaps,
aimed at reducing carbon emissions and unlocking the socioeconomic
benefits of hydrogen. Countries such as Germany, Japan, South Korea andAustralia are investing in policies and projects to unlock the opportunities
offered by hydrogen – such as the application of hydrogen for grid stability
in the wake of increased adoption of RE, heating in the built environment,
hydrogen’s potential for mobility, and its use in industrial processes.
However, most of these countries do not have the natural renewable
resources to produce green or renewable hydrogen at scale. Germany
and Japan, for example, have signalled their intention to import hydrogenfrom countries that have abundant renewable resources and the capacity
to supply the deficit. The momentum in policy, investment and the adoptionof transition strategies by major nations, energy companies, users andautomotive companies will drive hydrogen demand and the development of
a comprehensive hydrogen-energy system.
The race is on for countries with a comparative resource advantage todemonstrate the production of green hydrogen for export, at scale and atcompetitive prices, in response to this demand. The projected growth ofdemand for green hydrogen over the next 10 to 30 years offers an attractive
growth area as the world shifts from carbon-intensive to zero-carbonemission economies and industrial sectors; the emerging zero- or low-carbonhydrogen-energy system’s momentum is rapidly growing.

The demand for hydrogen has increased by more than 20 million tonnes overthe past decade. Oil refining, ammonia and methanol production accountfor 90% of current demand. According to the IEA, of the 70 million tonnesof hydrogen produced in 2018, 76% was made from natural gas and thebalance mostly from coal.45 Although future demand is expected to be forgreen hydrogen, less than 1% of the global production is currently green, witha current production of about half a million tonnes per year.46 However, thegreen-hydrogen market is projected to increase to 8.7 million tonnes per
year by 2030.47

2.2 SOUTH AFRICA’S COMPETITIVEEDGE IN HYDROGEN
PRODUCTION
South Africa currently produces approximately 2% of global hydrogen output(all grey hydrogen), with Sasol being the leading producer through its FischerTropsch (FT) CTL-fuel process. With the world increasingly turning towards
countries that have optimal RE resources to provide green hydrogen, South
Africa is among the few in a position to decarbonise its economy and export
green hydrogen or its derivatives, such as green ammonia and methanol
through leveraging a host of competitive advantages.48

2.2.1 Renewable-energy resources and landavailability
South Africa has ideal weather conditions for solar and wind generation,
which are the RE options typically deployed in green-hydrogen production.
High solar and wind availability factors increase the utilisation of hydrogenelectrolysers, ultimately lowering the cost of green-hydrogen production
and making investments attractive to potential funders. South Africa hasabundant year-round sunlight, appropriate wind conditions, available space forproject construction, and an enabling regulatory environment to accelerate
the growth of RE. The country has seen a significant cost reduction in RE
and hydrogen technologies, largely due to substantial increases in scale andinvestment in RDI globally. With all the important factors – availability ofland, ideal weather conditions and decreasing cost of RE, South Africa has
the opportunity to position itself as a country that can produce renewablehydrogen at scale and at competitive prices, triggering an export market fromwhich economic growth and energy independence can be derived.

41.
42.
43.
44.
45.
46.

International Renewable Energy Agency, Green Hydrogen Cost Reduction: Scaling up Electrolysers to meet the 1.5˚C Climate Goal, 2020, irena.org/publications/2020/Dec/Green-hydrogen-cost-reduction.
For example, emerging and maturing technologies such as Anion Exchange Membrane (AEM) and Solid Oxide Electrolysis Cell (SOEC).
State of California, Low Carbon Fuel Standard, ww2.arb.ca.gov/our-work/programs/low-carbon-fuel-standard.
Hydrogen Council (2020). A path to hydrogen competitiveness: A cost perspective. https://hydrogencouncil.com/wp-content/uploads/2020/01/Path-to-Hydrogen-Competitiveness_Full-Study-1.pdf.
International Energy Agency, The Future of Hydrogen, 2019, iea.org/reports/the-future-of-hydrogen.
Institute for Energy Economics and Financial Analysis, Great expectations: Asia, Australia and Europe leading emerging green hydrogen economy, but project delays likely, 2020, ieefa.org/wp-content/uploads/2020/08/
Asia_Australia_Euro pe-Lead-Green-Hydrogen-Economy_August-2020.pdf.
47. Ibid.
48. Strategy and.pwc.com, Green Hydrogen Production Potential in South Africa, June 2020.
HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

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2. SOUTH AFRICA’S OPPORTUNITY TO BECOME A SIGNIFICANT PLAYER IN THE HYDROGEN MARKET (CONTINUED)

Figure 2.1: South African RE resources and projected green-hydrogen cost, relative to the rest of the world
Source: IEA 2021, Global Hydrogen Review

2.2.2 Fischer-Tropsch skills and capabilities
Hydrogen can be combined with CO2 to produce synthetic hydrocarbons such as methane, diesel or jet fuel. In this regard, South Africa has the unique andpatented FT process, owned by Sasol. The technical expertise and skills that have been developed around the Sasol processes provide South Africa with acompetitive edge in the production of liquid fuels based on the hydrogen-production route.
Power Fuels
Hydrogen+CO2

MethaneMethanisation+H2O

Propane

+CO2

H2

H2

DieselFischer-TropschProcess

PetrolElectrolysis
H2

+CO2

Refining andConversion

Methanol
Synthesis+N2

Propylene

Methanolto Olefins

Ethylene

Ammonia
Ammonia
Synthesis

Figure 2.2: FT Process and RE power fuels

16

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION• Heavy road transport• Public transport• Rail transport• Crude oil refineries• Steel production• Industrial process heat
• Buildings• Heavy road transport• Public transport• Industrial process heat
• Buildings

Kerosene (Jet-fuel)Methanol
H2

Applications examples• Heavy road transport• Public transport• Rail transport• Air transport• Chemical industries

SECTION A: UNDERSTANDING SOUTH AFRICA’S HYDROGEN OPPORTUNITY

2. SOUTH AFRICA’S OPPORTUNITY TO BECOME A SIGNIFICANT PLAYER IN THE HYDROGEN MARKET (CONTINUED)

2.2.3 Platinum-group metals (PGMs)
South Africa is the world’s largest producer of PGMs (platinum, palladium,
ruthenium, rhodium, iridium and osmium), producing more than 75% of global
PGM output.49 However, much of this output is beneficiated outside South
Africa. PGMs are a key component of electrolysers in hydrogen production
and catalysts in fuel cells, and South Africa has identified PGM beneficiation

as a key economic opportunity and a driving force for advancing hydrogenand fuel-cell RDI. The country has a window of opportunity to develop
PGM-based components for hydrogen production to meet the demands ofother countries that have developed policies to integrate hydrogen in theireconomies.

Source: Council for Geoscience,
South Africa
Figure 2.3: South African PGM reserves

2.2.4 Port infrastructure

2.2.5 Depleted gas fields

With the existing GTL facility operated by PetroSA, much of theinfrastructure already exists to supply pure hydrogen into the domestic
and international markets. The infrastructure needed to export hydrogenis similar to existing natural gas networks. However, modifications may berequired to accommodate high pressures or other parameters, depending on
the product and transportation method that is deemed cost effective. South
Africa could leverage its existing port infrastructure to support exports ofhydrogen, protecting jobs and infrastructure that are declining as a result of
the drop in global demand for coal exports.

The natural-gas market may provide another solution in the form of hydrogenstorage. Many of the gas fields off the coast of South Africa are depleted,
yet the infrastructure linking these fields to the coast still exists. Similar to asolution being piloted in the UK, hydrogen could be produced on land andthe carbon by-product pumped into the depleted gas fields for storage until
it is needed.50

49. Minerals Council South Africa, The current state of the PGMs industry in South Africa. Presentation to the Johannesburg Indaba, 2020. https://www.mineralscouncil.org.za/industry-news/publications/presentations.
50. Strategy and.pwc.com, Green Hydrogen Production Potential in South Africa, June 2020.

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2. SOUTH AFRICA’S OPPORTUNITY TO BECOME A SIGNIFICANT PLAYER IN THE HYDROGEN MARKET (CONTINUED)

Mineral-bulk

Break-bulk
Richards Bay
DurbanEast London

Agri-bulk

RoRo

NgquraSaldanhaGqeberha

Containers

Cape Town

Figure 2.4: South Africa’s existing port infrastructure
Source: https://www.transnetportterminals.net

2.2.6 Existing strategic trade partnerships withcountries looking to import green hydrogen
In the medium to long term (10 years and beyond), Japan, South Korea
and the European Union (EU) will emerge as the main potential export
destinations for green hydrogen, given the advancement of policies in thesecountries. Japan expects to develop commercial-scale supply chains by 2030
to procure 300 000 tonnes of hydrogen annually. Developments in the EU
also point towards the region being a potential off-taker of green hydrogen.

The recently released Hydrogen Roadmap Europe sets the scene for thedevelopment of the hydrogen economy in Europe, with plans to install 6 GW
of RE-based hydrogen electrolysis by 2024 and 40 GW by 2030.51 The EU has
identified Africa as a region with high RE potential and as a possible supplierof green hydrogen.

51. FCH, Hydrogen Roadmap Europe, 2020. https://www.fch.europa.eu/sites/default/files/Hydrogen%20Roadmap%20Europe_Report.pdf.

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HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONSECTION A: UNDERSTANDING SOUTH AFRICA’S HYDROGEN OPPORTUNITY

2. SOUTH AFRICA’S OPPORTUNITY TO BECOME A SIGNIFICANT PLAYER IN THE HYDROGEN MARKET (CONTINUED)

2.3 SOUTH AFRICA’S ECONOMIC
RECONSTRUCTION ANDRECOVERY PLAN
South Africa is home to 75% of the global reserves for PGMs. Most are usedas value-added materials or catalysts in HFCT. The development of South
Africa’s hydrogen economy and market therefore opens the opportunity
for local value addition or beneficiation of the PGMs mined in the country.

Currently, about 40% of the PGMs are used in catalytic converters for internal
combustion engines (ICEs).52 However, the potential decline in ICEs due toclimate-related restrictions threatens the existence of this market and thefuture demand for PGMs. Through the hydrogen economy, however, South
Africa has the opportunity to mitigate this through the use of PGMs inhydrogen fuel-cell vehicles and green-hydrogen production technologies.
This could preserve jobs in the mining sector and create new jobs in thedownstream industry through component manufacturing and deployment
of HFCT.

SOUTH AFRICA’S TOP SOCIOECONOMIC CHALLENGES

Unemployment

Inequality

Poverty

Declining economic
growthDeclining
investment

COMPOUNDED BY

Credit ratings
downgrades

Other structural
challenges

COVID-19
pandemic

Fiscalconstraints

These challenges have raised the need for a plan that will support socioeconomic reconstruction and recovery

Figure 2.5: South African Economic Reconstruction and Recovery Plan (SAERRP) focused green economy

52. Minerals Council SA, 2019.

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2. SOUTH AFRICA’S OPPORTUNITY TO BECOME A SIGNIFICANT PLAYER IN THE HYDROGEN MARKET (CONTINUED)

For years, South Africa has had to deal with shocks in price and supply related
to oil-price imports. In 2018, the country’s net import of foreign crude
oil amounted to ZAR54 billion. Crude-oil price fluctuations and supplysecurity issues require the country to consider other options to reduce
its dependence on foreign oil. The local production of hydrogen and its
subsequent use in energy-related applications and as transport fuel could
reduce capital outflows from South Africa, and improve the country’s balanceof payments. In addition, there would be other societal benefits such as lower
transport-related emissions, energy independence, clean air, job creation andeconomic growth related to the export of green or renewable hydrogen.
The global growth in hydrogen demand, its wide variety of applications
and decreasing technology costs make hydrogen an attractive investment
opportunity, which could result in cumulative global investment of
USD450 billion by 2030.53 In conjunction with increased demand forhydrogen, countries are shifting away from a dependence on fossil fuels suchas coal, which is a crucial export for South Africa. Green hydrogen offers
the country an opportunity to replace the declining export of coal. The
development of a new hydrogen industry could also have a positive impact
on job creation. Given the country’s large share of PGM resources and theirsignificant contribution to the economy (ZAR187.6 billion in 2019), and thedire unemployment situation, it is essential to capitalise on the increased
demand for hydrogen applications that require PGM metals. The PGM
industry currently employs about 160 000 people, with two to three indirect
jobs in other industries for each direct job, resulting in close to 400 000 jobs.54
The potential for hydrogen to support the growth of the RE industry in South
Africa as an energy-storage solution could also contribute to job creation.

and the country was the only one to have included a just transition in its
NDCs in 2015. In early 2021, the Presidential Climate Change Coordinating
Commission was established to coordinate South Africa’s just transition. The
large concentration of coal mining and power generation in Mpumalanga, as
well as the potential decline in coal demand in the global market, means theneed for a just transition in South Africa is particularly relevant in order to deal
with the potential loss in jobs and economic activity in affected communities.
The recent update to the NDCs means that the country has to movewith speed to respond to the global commitments on emissions reduction.
Hydrogen and its application in various sectors has the potential to reduce
emissions and create jobs in its various value chains, which could be used tosupport the just transition in South Africa.

2.5 THE EXISTING HySAPROGRAMMESouth Africa’s ambition to develop a hydrogen economy began with theapproval of the HySA Strategy by Cabinet in 2007. The Department of
Science and Technology, now the DSI, identified HFCT for their potential
to reduce emissions and secure the country’s energy future. This led to thesubsequent establishment of the HySA Programme in September 2008. The
objective of this 15-year programme was to promote proactive innovationand create human resources required to develop future industries in HFCT.
Three Centres of Competence (Table 2.2) were established to implement
the HySA Programme.
To build on these achievements, the DSI, in consultation with other
Government departments, identified the need for a high-level roadmap for
integrating hydrogen and related technologies into South African society.
South Africa has a number of resources to leverage in order to become asignificant player in the international hydrogen market.

2.4 JUST TRANSITION IS AT THE
CENTRE OF FUTURE CLIMATEPOLICY
Given the global move towards a low carbon economy, largely necessitatedby the negative impact of climate change, there is a need to ensure inclusive
participation in the transition and that the substantial benefits of a green
economy are shared. The World Resources Institute55 considers South
Africa’s national dialogue on just transitions one of the most advanced
Table 2.2: Current HySA Centres of Competence and focus areas

CENTRE NAMEHySA Catalysis

HySA Infrastructure

HySA Systems

RESEARCH FOCUS

HOST INSTITUTIONS•Catalysts and catalytic devices
for fuel cells and hydrogenproduction.

•

University of Cape Town (UCT)•South African Minerals ResearchCouncil (MINTEK)Technologies
production,
distribution.

•

North-West University (NWU)•

Council for Scientific and Industrial
Research (CSIR)•

University of the Western Cape
(UWC)

•

•

for
hydrogen,storageand

Systems
integration
technology validation.

and

53. Hydrogen Council (2017). Hydrogen scaling up: A sustainable pathway for the global energy transition. https://hydrogencouncil.com/wp-content/uploads/2017/11/Hydrogen-scaling-up-Hydrogen-Council.pdf.
54. Minerals Council South Africa (2020). The current state of the PGMs industry in South Africa. Presentation to the Johannesburg Indaba. https://www.mineralscouncil.org.za/industry-news/publications/presentations.
55. https://www.wri.org/just transitions/south-africa/.

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HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONHySA developed fuel cell unit with onsite hydrogen storage and educational
cartoons deployed at Poelano Secondary School near Ventersdorp, launchedin April 2018

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

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2. SOUTH AFRICA’S OPPORTUNITY TO BECOME A SIGNIFICANT PLAYER IN THE HYDROGEN MARKET (CONTINUED)

SOUTH AFRICA’S HYDROGEN ECONOMY JOURNEY
The HySA Programme incorporated a public-awareness, demonstration andeducation platform aimed at creating awareness of the benefits of hydrogenand fuel-cell technology. Key achievements in South Africa’s Hydrogen journey
are highlighted in Figure 2.6.

Cabinet approves the
National Hydrogen South
Africa (HySA) RDI
Strategy

2007

Launch of the Ahifambeni
incorporating the metal
hydride H2 storage
material

2008

2009

2010

Hosting of the 17th IPHE
Meeting by South Africa

2011

2012

Fuel cell locomotive
tested by Amplats at
Khomanani Mine

Formal launch of the
HySA Programme by
Minister of Science andTechnology

Development of a fuelcell powered golf cart
prototype2013

Inauguration of the HySA
Advisory Board

Dr Phil Mjwara launches
a fuel cell unit at the
University of the Western
Cape Nature Reserve2014

Launch of fuel cells foroff-grid rural electrificationin Naledi Trust Village in theFree State

Figure 2.6: South Africa’s journey towards a hydrogen economy

PHASE 1: TECHNOLOGY CATCH-UP:
22

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
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2008 / 2009 - 2013 / 2014
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SECTION A: UNDERSTANDING SOUTH AFRICA’S HYDROGEN OPPORTUNITY

2. SOUTH AFRICA’S OPPORTUNITY TO BECOME A SIGNIFICANT PLAYER IN THE HYDROGEN MARKET (CONTINUED)

SOUTH AFRICA’S HYDROGEN ECONOMY JOURNEY (CONTINUED)

Fuel cell training for TVET
graduates and students
launched

Key achievements in South Africa’s Hydrogen journey are highlighted in Figure 2.6.

Fuel cell launch at the
Chamber of Mines
building in Johannesburg

2015

Fuel cell launch at
Cofimvaba Schools in
Eastern Cape

Launch of the fuel cell
forklift and refuelling
station at Impala Platinum
Refineries

2016

Launch of the HySA
developed fuel cell unit at
Poelano Secondary
School in North West2017

HySA Competitive Fund
introduced to facilitate
collaboration withindustry

2018

Hosting of the 30th
IPHE Meeting in South
AfricaLaunch of fuel cell at
Windsor East Clinic in
Randburg

PHASE 2: SOUTH AFRICAN EXTENSION: 2014 / 2015 - 2018 / 201924

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

Fuel cell powered scootersdeployed at SAPO Offices inCape Town

2019

Second HySA Five Year
Review conducted

Hydrogen Society
Roadmap development
initiated

Cabinet approves theHydrogen Society
Roadmap

HySA MEAs and catalyst
successfully qualified within acommercial system

IDC is mandated to develop
the Green Hydrogen
Commercialisation Strategy

2020

2021

Interdepartmental
Committee develops theterms of reference for thedevelopment of theHydrogen Society Roadmap

The establishment of the
Platinum Valley (SA'sHydrogen Valley)
announced during the
SONA debate

Triple helix partnershipfacilitated government rapid
response to COVID-19. Fuelcells deployed to power
COVID-19 field hospital at
1Military Hospital in Pretoria

Stakeholder
Collaboration Workshop
for the Hydrogen Society
Roadmap held

Hydrogen Valley
Feasibility Study Reportlaunched

PHASE 3: SOUTH AFRICAN INNOVATION: 2019 / 2020 - 2022 / 2023
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SECTION A: UNDERSTANDING SOUTH AFRICA’S HYDROGEN OPPORTUNITY

2. SOUTH AFRICA’S OPPORTUNITY TO BECOME A SIGNIFICANT PLAYER IN THE HYDROGEN MARKET (CONTINUED)

2.6 THE REGULATORY FRAMEWORKPRESENTS BOTH BARRIERS ANDOPPORTUNITIES
While certain legislation within the current South African regulatory
framework serves as a basis for introducing hydrogen, there are gaps thatneed to be addressed to realise the potential benefits of a hydrogen society.

references to hydrogen as a potential energy source. Table 2.3 indicates someexisting policies that could be directed towards supporting the deployment ofhydrogen-related technologies. (Some of these have already been discussed
in Section 1.3.)

2.6.1 Existing policies

While not expressly providing policy in respect of hydrogen, the documents
listed in Table 2.3 provide insights that can be extrapolated to what
Government hydrogen policy intervention might require. An essential step
is for Government to perform an in-depth assessment of each hydrogen
application to identify measures that might guide the future policy landscape.

There is currently no explicit policy, or considered policy direction, regarding
the introduction and development (with associated targets and timelines)of a hydrogen society. However, several policy documents make oblique

Table 2.3: Existing policies and plans that could be used to support hydrogen-related technologies

26

POLICYLINK TO THE HYDROGEN SOCIETY

White Paper on Renewable
Energy Policy (2003)

Increased RE contribution to the energy mix, which requires support from energystorage technologies.

HySA Strategy (2007)

Supports the development of hydrogen and fuel-cell technologies through the 15-year
Hydrogen South Africa RDI Programme.

National Energy Efficiency
Strategy (2008)

Supports the development and deployment of energy-efficient technologies. Based on
their low-carbon attributes and potential for use in demand-side management, hydrogenand fuel cells are attractive options.

National Climate Change
Response White Paper(2011)South Africa has committed to reduce emissions via a peak, plateau and decline
trajectory, to which hydrogen could make a contribution.

Beneficiation strategy forminerals industry of South
Africa (2011)

Supports the development of technologies that beneficiate the country’s mineral
resources locally for increased revenue.

Department of Public Worksand Infrastructure Green
Building Policy (2018)

Given their low-carbon footprint, hydrogen fuel cells are a viable option for deployment
in public buildings and to power critical infrastructure.

Green Transport Strategy forSouth Africa (2018)

Advocates for the deployment of electric vehicles, including hydrogen fuel-cell powered
vehicles, as a means for decarbonising the transport sector.

Integrated Resource Plan
(2019)

Increased contribution of RE in the energy mix would require hydrogen for optimal
usage and long-term storage.

National Development Plan
2030

Advocates for the transition to a low-carbon and diversified energy system.

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONSECTION A: UNDERSTANDING SOUTH AFRICA’S HYDROGEN OPPORTUNITY

2. SOUTH AFRICA’S OPPORTUNITY TO BECOME A SIGNIFICANT PLAYER IN THE HYDROGEN MARKET (CONTINUED)

2.6.2 Barriers and opportunities
Some amendments to existing policy measures will be required to “jumpstart” the hydrogen economy, until normal market forces take over and thehydrogen economy becomes self-sustaining. In some countries, declining
incentives have been used to stimulate the deployment of hydrogen-related
technologies (such as ENE-FARM in Japan).
As an example, the Gas Act No 48 of 2001 defines gas to include “hydrogenrich gas”. Should it be considered feasible to use the existing piped-gas
infrastructure or to develop and build on it for the distribution of hydrogen,then the Gas Act already provides basic coverage for the distributionof hydrogen and specifically governs hydrogen-rich gases. The piped-gas
regulations, rules and standards will, however, need to be enhanced anddeveloped to provide specifically for the deployment or injection of hydrogen
into the piped-gas network, particularly with regards to the minimum andmaximum pressures that are commercially viable and safe.
Safety and security in the production and use of hydrogen are criticallyimportant. Specific, significant regulatory reform will be required to ensure
the safe commercialisation of hydrogen. Importantly, these regulations must
be implemented across the entire hydrogen value chain to ensure safety
and security in production, storage, distribution and transport, and end-user
applications.

South Africa participates in the Regulations, Safety, Codes and Standards
Working Group as well as the Task Force on Hydrogen Production andAnalysis of the IPHE, which allows the country to learn from existing
regulations in other countries.
In addition, the National Environmental Management Act (NEMA) may be
used on a limited basis for developing regulations and standards aroundenvironmental impact (so too the Gas Act, which considers land rehabilitation
after land is used for hydrogen storage). Policymakers will need to expand,enhance and develop environmental regulations and standards (such as
motor-vehicle emission standards) to account for hydrogen production,
storage, distribution and transportation, and usage. South African legislation
will therefore require significant development to address the gaps in thecurrent regulatory framework if the introduction and development of ahydrogen society are to be achievable.
Opportunities also exist to leverage existing tax and incentive mechanisms to
support the deployment of hydrogen-related technologies (Table 2.4).

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2. SOUTH AFRICA’S OPPORTUNITY TO BECOME A SIGNIFICANT PLAYER IN THE HYDROGEN MARKET (CONTINUED)

Table 2.4: Tax and incentive mechanisms that could support hydrogen-related technologies

28

TAX/INCENTIVEMECHANISMAPPLICATION TO THE HYDROGEN SOCIETY

Section 11D of the Income
Tax Act No 58 of 1962 (R&D
tax deduction)

Section 11D does not restrict the type of R&D undertaken and may therefore be used
as a tax incentive to advance R&D specifically within the hydrogen landscape.

Section 12L of the
Income Tax Act No 58 of
1962 (Energy Efficiency
Allowance)

The section 12L tax deduction may be used to encourage taxpayers to movetowards using hydrogen as an alternative fuel source, because hydrogen contributes tosustainability.

Special Economic Zones(SEZ)

A reduced corporate tax rate of 15% and accelerated 10% tax allowance on buildings,
as set out in sections 12S and 12R of the Income Tax Act No 58 of 1962, apply tocompanies operating in geographically designated areas of South Africa set aside for
specifically targeted economic activities.

Critical Infrastructure
Programme (CIP)

Provided that the underlying infrastructure is deemed critical, the CIP may be used
to advance hydrogen projects' investment (such as hydrogen pipelines or refuelling
stations).

Capital Projects Feasibility
Programme (CPFP)The CPFP incentive may be used to reduce the cost of feasibility studies for hydrogenrelated manufacturing projects in South Africa.

Support Programme forIndustrial Innovation (SPII)

R&D features prominently in hydrogen-society strategies and is likely to be one of the
key strategies for South Africa. The SPII may be used to promote and incentivise thedevelopment of hydrogen technologies.

Technology and Human
Resources for Industry
Programme (THRIP)

This incentive may be used to increase the number of people with the appropriate skills
in hydrogen applications and technologies.

South African Automotive
Masterplan (SAAM)

Even though this plan does not contain incentives that are specifically geared towards
a shift to the production of hydrogen fuel-cell vehicles, these incentives may be used topromote investment in hydrogen technologies in the automotive sector.

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONSECTIONB

THE POTENTIAL FUTURE
OF HYDROGEN IN
SOUTH AFRICA

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DEPARTMENT OF SCIENCE AND INNOVATION

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SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

3.	BUILDING BLOCKS FOR A SOUTH AFRICAN HYDROGEN SOCIETY

The Driector-General, Dr Phil Mjwara, launches the fuel cell unit at the
University of the Western Cape Nature Reserve-November 2014

3.1 THEORY OF CHANGE
To ensure that the development of the HSRM was comprehensive andinclusive, DSI reached out to stakeholders in both the public and private
sectors and wider civil society to participate in the stakeholder consultation
process. The purpose of the consultations was to align stakeholders on acommon vision on hydrogen-related technologies in order to create anenvironment where investment decisions can be made to unlock the societal
economic benefits for the country. The development of the HSRM was,therefore, a collaborative, multi-stakeholder endeavour with the objective of
coalescing all efforts towards unlocking the full potential of the country’shydrogen socioeconomic value.
The theory of change process enabled the DSI to bring together government,
private sector and civil society to set the vision that defines success for theSouth African hydrogen journey. Figure 3.2 shows how the theory of change
was applied to develop components of the HSRM.

WHAT IS A THEORY OF CHANGE?
• Explains how a policy is expected to lead a chain of results• Enables policymakers to think through policy development• Informs what should be monitored and how the policy should be evaluatedPartners

Outputs

Levers of change

Hydrogen Society
Roadmap Outcomes

Objectives

Goal

THE THEORY OF CHANGE FOR THE HYDROGEN SOCIETY ROADMAP
Just and inclusive net-zero carbon economic growth for societal wellbeing by 2050
Just labour transition

Decarbonisation oftransport sectors

Reduced GHG emissions

Decarbonisation ofenergy intensive
industry

Energy security

Investment

Reduced inequality
and poverty

Improved balanceof payments

Creation of export
market for SA H2

Centre of Excellencein Manufacturing forH2 products and fuelcell components

Green and enhanced
power sector andbuildings

H2 production, storage
and distribution industry

Levers of Change, e.g. Infrastructure, skills, cost competitiveness, regulation
Integrated policy
environment

Financial framework

Industrial clusters

Infrastructure

Research, development
and innovation

Partners, e.g. government, SOEs, academia, private sector, financial institutions

Figure 3.1: Theory of change for the HSRM

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DEPARTMENT OF SCIENCE AND INNOVATION

Skills development

SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

3. BUILDING BLOCKS FOR A SOUTH AFRICAN HYDROGEN SOCIETY (CONTINUED)

3.1.1 Vision

3.1.3 Outcomes

The vision of the HSRM is “an inclusive, sustainable and competitive hydrogen
economy by 2050”.

Six high-level outcomes have been identified for the HSRM based on the
Theory of Change as shown in Figure 3.2. The outcomes include:

The overall goal linked to this vision is “A just and inclusive net-zero carbon
economic growth for societal wellbeing by 2050”.

•

3.1.2 Objectives
The HSRM will contribute to the goal of a just and inclusive net-zero carbon
economic growth for societal wellbeing by 2050 through supporting thefollowing interlinked objectives:•

Inward investment and balance of payments

The development of domestic manufacturing for hydrogen products andcomponents, along with the greening of the economy and hydrogen exports,
will encourage inward investment. Together with reduced oil imports, thesechanges will support improvements in the balance of payments.
•

Reduced GHG emissions

The HSRM implementation will reduce GHG emissions by replacing fossil
fuels in energy-intensive industry, road and rail transport, shipping andaviation. HSRM will also enable the greening of the power sector by providing
RE storage to the grid, and reliable zero-carbon electric and thermal energy
for off-grid applications.
•

A just labour transition

The HSRM will support a just labour transition by providing new, highquality green jobs in the generation and storage of hydrogen, manufacturingof hydrogen-related products such as fuel cells and electrolysers, thebeneficiation of minerals through the supply of value-added components
in the hydrogen value chain, and the export of green hydrogen. Jobs will
also be created in the local manufacture of hydrogen-related products andinfrastructure construction, and will be preserved in the transport andindustry sectors.
•

Energy security

The HSRM will enable energy security by providing a zero-carbon contribution
to the national electrification plan, and backup energy to the electricity gridfor critical applications.
•

Reduced inequality and poverty

The implementation of the HSRM will benefit society as a move towards
a hydrogen economy can assist with the Sustainable Development Goals(SDG) with specific emphasis on SDG7 – affordable and clean energy, as
well as SDG8 – decent work and economic growth. Economic growth will
be underpinned by job growth which is required to reduce unemployment.
Green hydrogen will enable decarbonisation in industrial clusters and improve
air quality in disadvantaged communities, which are usually co-located nearindustrial clusters.

Decarbonisation of transport sectors

The focus will be on the decarbonisation of heavy-duty vehicles, shipping,aviation and rail to reduce the 11% GHG emissions from the transport sector,
the bulk of which (> 90%) comes from road transport.
•

Decarbonisation of energy-intensive industry

Priority will be on the hard-to-abate sectors such as steel making, cement,
mining, refineries and chemical production. According to the GHG Inventory
2017, manufacturing and construction, mineral and metal production, as
well as mining, contribute 12% to the overall emissions, with more than halfcoming from the minerals and metal production.
•

Creation of an export market for South African hydrogen

Leveraging the renewable energy resources such as wind and solar, the focus
will be on renewable or green hydrogen production at a globally competitive
price and selling it to the export market in various forms including green
chemicals.The objective will be to at least double South Africa’s current shareof the global market (2%) in the form of green hydrogen exports by 2050.
•

Centre of Excellence in Manufacturing for hydrogen products
and fuel cell components

The focus will be on the manufacturing of value-added components for thehydrogen and fuel cell value chain, particularly in areas where South Africa
could have a competitive advantage based on its natural resources.
•

Green and enhanced power sector

The focus will be on greening and stabilising the power sector to support
economic recovery while reducing the carbon intensity per unit of power
produced, to reduce the current 43% of GHG emissions from electricity
production. Given the negative impact of load shedding on the South African
economy (which some analysts put at ZAR500 million per stage, per day),stabilising the grid to ensure energy security in support of economic recovery
is key.
•Hydrogen generation, storage and distribution

The focus will be on scaling up the generation, storage and distribution of
all forms of hydrogen to support the HSRM, while positioning the country
to make a responsible transition from grey, blue and green hydrogen in
response to market demand while supporting the achievement of climatechange targets.

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3. BUILDING BLOCKS FOR A SOUTH AFRICAN HYDROGEN SOCIETY (CONTINUED)

GOAL: JUST AND INCLUSIVE NET-ZERO CARBON ECONOMIC GROWTH FOR SOCIETAL WELLBEING BY 2050 (NDP)
HYDROGEN SOCIETY ROADMAP OUTCOMES

Decarbonisation oftransport sectors:
heavy duty vehicles,
shipping, aviation, rail*

Decarbonisation ofenergy-intensive industry(steel, chemicals, mining,refineries, cement)*

Creation of export
market for SA H2*Manufacturing sector
for H2 products andexcellence

Green and enhanced
power sector
and buildings(includes grid stability)*

H2 production, storage and distribution industry* (includes grey, blue and green H2)

Figure 3.2: High-level outcomes of the HSRM

3.1.4 Levers of change
Levers of change comprise of the enablers that will facilitate the realisation of
the high-level outcomes. The theory of change identified the following levers
as being critical:•

Local and international demand for green hydrogen and green products;•

Compliance and regulation;•

Enabling infrastructure and policy that support hydrogen adoption anddis-incentivise alternatives;•

Attractive investment environment;•

Cost competitiveness with a focus on the levelised cost of greenhydrogen;•

Corporate targets (e.g. carbon budgets);•

International commitments; and•Innovative culture and skilled workforce.

3.1.5 Outputs
Some of the outputs envisaged from the theory of change process include:•

Market development/business cases;•

Favourable and integrated policy, fiscal measures and regulatoryenvironment;

32

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION•

Financial framework that provides access to capital markets;•

Raw material availability ranging from PGMs to water;•

National and international partnerships;•

Demonstration of pilot projects including industrial clusters;•

Research, development and innovation; and•Skills development.

3.1.6 Partners and their contributions
For each of the levers of change and associated outputs, the theory ofchange identified the stakeholders across the public and private sectors, aswell as other organisations, who would take lead and supporting roles in
the achievement of the outputs and the outcomes. The overarching theoryof change (Figure 3.3) gives the high-level outcomes, outputs and thestakeholders expected to take a lead in their achievement. In Chapter 4, thedetailed actions are given for each of the high-level outcomes.

SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

3. BUILDING BLOCKS FOR A SOUTH AFRICAN HYDROGEN SOCIETY (CONTINUED)

Source: HySA Infrastructure CoC.

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SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

3. BUILDING BLOCKS FOR A SOUTH AFRICAN HYDROGEN SOCIETY (CONTINUED)VISION AND GOAL: JUST AND INCLUSIVE NET-ZERO CARBON ECONOMIC GROWTH FOR SOCIETAL WELLBEING BY 2050 (NDP)*GESI (DWYPD)
DEPARTMENTS IN CHARGE FOR POLICIESInvestment (inward/domestic)* (MTSF)

Reduced GHG
emissions(NDC, IRP 2019,
NCCRP, LEDS,
GTS, AMP, IPAP, P4C)

Just labour transition(job quality, green jobs)*(MTSF)

Balance of payments
improvement(NDP)

Energy security*(affordability, availability,
accessibility)(IRP, IEP, SAREM)

Reduced inequality andpoverty* (MTSF, NDP)

DTIC

DMRE, DFFE,
NPC, DoT, DTIC

All departments

DTIC, NT, NPC

DMRE, DTIC

All departments,
NPC

Decarbonisation oftransport sectors: heavy
duty vehicles, shipping,aviation, rail*

Decarbonisation ofenergy intensive industry(steel, chemicals, mining,refineries, cement)*

Creation of export
market for SA H2*Manufacturing sector
for H2 products
and excellence

Green and enhanced
power sector
and buildings(includes grid stability)*

Local andinternational demand(GH2, green products)

Complianceand regulation

Enabling infrastructure
and policy supports H2and disincentivises
alternatives

Cost competitiveness(LCOE of GH2)

Attractive investment
environment

Corporate targets(e.g. carbon budgets)International
commitments

Innovative culture andskilled workforce

Outputs

Marketdevelopment/
business cases

Favourable andintegrated policy,
fiscal measures andregulatoryenvironment

Financial
framework (accessto capital markets)

Raw materials available(water, PGMs)

National andinternational
partnerships

Demonstration andpilot projects
including industrial
clusters

Research, development
and innovation

Skills development*

Partners

DTIC, DSI, DoD
private sector. SADC,
SA regions, SOEs,
Infrastructure SA, CEF

DTIC, DFFE, DSI,
DMRE, NT, DoT, SA
Bureau of Standards,
SADC, National
Energy Regulator,

DMRE, DTIC,
private sector, CEF

DTIC, DFFE, DIRCO,
private sector, SADC,
SA regions, SOEs

DSI, DMRE, DBE,
DHET, HySA,
private sector,
SOEs, SADC,SANEDI

Platinum Valley and
Limpopo Scienceand Technology
Park, CEF

Green Hydrogen
Economy: Just labourtransition through
TVET College

Objectives

Levers of
ChangeH2 generation, storage and distribution industry*(includes grey, blue and green H2)HydrogenSociety
Roadmap
Outcomes

DTIC, DSI, DMRE,
NT, DoT, DBSA, IDC,
PIC, Donors/
DFIs, financial
institutions, CEF, ISA

Figure 3.3: Overarching theory of change

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HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONHYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

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SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

3. BUILDING BLOCKS FOR A SOUTH AFRICAN HYDROGEN SOCIETY (CONTINUED)

3.2 THE INTERNATIONAL ENERGYAGENCY POLICY FRAMEWORKThe IEA has proposed five pillars of policy support for the development ofdomestic hydrogen economies, keeping pace with global climate ambition.56
These pillars outline measures to promote domestic use and create export
opportunities via the establishment of new global markets for carbon-neutral
commodities:

roadmap for scaling clean supply and value chains. Varying funding vehicles
have been created that are either hydrogen specific (for example, in Chile,
Morocco, and the UK) or stipulate clean production, which would includehydrogen (via eligible production routes and technologies, for instance, fuelcells and electrolysers). The UK has specific policies targeting low-carbonhydrogen, intended to mitigate project-development costs.

3.2.1 Establish targets and/or long-term policy
signals

South Africa has an impressive record of establishing world-class industries,
with exemplars including Eskom, Transnet, Iscor and Sasol. Public-investment
institutions such as the Industrial Development Corporation, Public
Investment Corporation and the African Development Bank have key roles
to play in identifying market opportunities for the green-hydrogen economy
and nurturing private-sector participation.

A national hydrogen strategy should clearly define the role of hydrogen in
the economy. It should identify priority sectors, either domestic or export,
and a timeframe for scaling deployment. It should ensure coherence across
key policy and planning frameworks, adhering to the ambitions of thecountry’s NDC and national development plans. For example, overarchingnational energy policies, and masterplans for the automotive, steel, RE andgas sectors should stipulate low-carbon or carbon-neutral alternatives intheir respective supply chains, with specific implementation targets. This inturn could stimulate manufacturing associated with producing hydrogen, andits associated technologies such as fuel-cell and electrolyser components.
Australia, for example, has indicated its willingness to export hydrogen in
the near term, and has developed infrastructure in readiness; while Germanyhas drafted a power-to-liquids roadmap that creates opportunities for its
domestic market in hydrogen-derived fuels (such as jet fuel) to decarbonise
its aviation sector.

3.2.2 Support demand creation
Portfolios should be established that set minimum targets for utilisation inpriority sectors, in sync with emissions and employment targets, to incubate
green value chains. In industrial and transport applications where candidate
sectors present ideal catalysts (such as iron and steel, long-haul heavy-dutytransport, industrial heat, chemicals and synfuels), clean-production portfolios
should be mandated to create an enabling environment. Public infrastructuresuch as transport and buildings could provide opportunities to demonstratetechnology readiness and signal intent to private-sector entrants. Stringent
emissions standards, such as the NEM: AQA, should be enforced to facilitate
the rapid introduction of clean-production technologies across the economy.
Sales of internal-combustion vehicles in key markets (EU, the United Kingdom(UK) and North America) are slated to cease by 2030 in response to climatechange; in particular, diesel vehicles, which predominate in heavy-dutytransport, are due for earlier removal as a consequence of their impact on
local air quality.

3.2.3 Mitigate investment risks
In the face of several identified opportunities that lack clear timeframes
or proof of future market demand, a nascent hydrogen sector requires
investment certainty. The EU and several other countries have establishedfunding mechanisms to catalyse projects and drive private-sector participation.
Germany has included green hydrogen under its ambitious Energiewende, andhas initiated the H2-Global mechanism to accelerate renewable-electricity
generation globally by promoting industrial-scale green-hydrogen value chainssuch as those involved in the production of ammonia, methanol, aviation fueland chemicals. The mechanism’s ten-year purchase agreements provide a

3.2.4 Promote R&D, innovation, strategic
demonstration projects and knowledge-sharing
To achieve a cost-competitive hydrogen value chain, continued investment
in R&D is required to stimulate innovation in carbon-neutral hydrogenproduction and its applications. South Africa’s HySA network of R&D hubs
is a centre of such activity, and mirrors similar institutions internationally,
most notably the H2@Scale programme in the United States of America(USA). Beyond research, the bridge to success is strategic support forembryonic projects that demonstrate commercial viability in a climateneutral global economy. This requires partnerships across the public-private
domain, extending regionally and internationally to facilitate rapid scaling of
the hydrogen economy. South Africa and Namibia both enjoy world-leading
RE resources, and the recent announcement by both countries of hubs to
be developed in expectation of global trade provides an impetus for suchregional cooperation.57

3.2.5 Harmonise standards and remove barriers
Appropriate standards and regulations need to be developed to govern the
production, processing and application of hydrogen. Hydrogen is alreadyutilised in diverse applications, such as providing feedstock in refineries andfunctioning as a heat-transfer medium in thermal power plants. Deployinghydrogen at the scale envisaged to meet climate goals requires relevant
regulations to keep pace with, and reflect, emerging markets. In addition
to existing engineering standards that, inter alia, cover safe handling andrequisite quality control (for example, the necessary purity of hydrogen
per application), new interpretations may be necessary. China, for instance,
reclassified hydrogen as an energy carrier so that it is no longer subject to themore stringent regulations governing hazardous substances.
Competition with cheaper fossil-fuel alternatives presents another barrier.
Carbon border-adjustment mechanisms – tabled in the EU and echoed in
the USA – are designed to address this barrier by prioritising carbon-neutral
value chains via favourable tariff schemes. The development of coherent
carbon-accounting frameworks to assess the carbon intensity of value chainsis therefore another potential vehicle for hydrogen adoption, minimising risk
to existing trade markets such as agriculture, and encouraging new trade in
the energy transition, such as in the production of ammonia, aviation fuel,machinery and iron and steel.

56. IEA, Global Hydrogen Review 2021 – Progress in five key areas for hydrogen policymaking, 2021, ea.org/reports/global-hydrogen-review-2021.
57. Federal Ministry of Education and Research (Germany), Karliczek: Germany and Namibia form partnership for green hydrogen, n.d. bmbf.de/bmbf/shareddocs/kurzmeldungen/en/Karliczek-Germany-and-Namibia.
html.

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3. BUILDING BLOCKS FOR A SOUTH AFRICAN HYDROGEN SOCIETY (CONTINUED)

3.3 KEY MILESTONE/ACTIVITIESCreating an enabling environment to scale up hydrogen use across all sectors
in support of South Africa’s move towards a net-zero carbon economy will
require a comprehensive and coordinated response across government. The
IEA has outlined a policy framework that was used to classify the key actions
which were identified by the private sector, academia and government tospeed up the process of moving hydrogen to become an energy vector in theSouth African energy system. During expert working group meetings held in
September 2020 and subsequently at the Theory of Change workshops heldin February 2021, 70 key actions were identified.
With regards to the six outcomes the majority (28%) focus on scaling up
the consumption of hydrogen as well as the transition from grey to blue togreen hydrogen essentially ensuring that clean hydrogen is integrated as anenergy vector in the South African energy system.The sector with the second
largest number of key actions at 22.8% is the enhanced and green power
sector plans to increase the role of hydrogen to support an increase in RE
deployments while improving flexibility and creating opportunities for theprivate sector to self-generate. For the private sector this will improve energy
security while reducing exposure to scope 2 emissions. The building sector
will have more options that support access to modern forms of energy in theresidential sector and improving service delivery as public buildings will havesustainable back-up power.
The key actions (12.8%) identified the need for the creation of an export
market for South African green hydrogen focused on mitigating investment
risk for the private sector, which is largely expected to take a lead in ensuringthat South Africa’s aspirations to participate in the global green hydrogensector are realised. Currently, South Africa provides 2% of the global greyhydrogen demand. However, plans to move the market from grey togreen hydrogen while increasing exports will require strategic international
partnerships and public-private partnerships to be strengthened in the shortterm. Given the global nature of the export sector it is not surprising that thesecond largest number of key actions were within the “harmonise standards
and remove barriers area” and South Africa’s participation in global forums
to ensure the harmonisation of standards, especially for products expected topenetrate the global market, will be key.
The key actions in the Energy-Intensive Industry (11.4%) are focused on
supporting early adopters to mitigate investment risk by reducing cost of fuelcell technologies so that sufficient economies of scale for fuel cell technology
adoption in industry will allow the movement from a technological niche
to a market. The pressure to reduce GHG emissions while retaining
competitiveness is critical, especially with South Africa’s concerted attempts torecover from the economic downturn experienced during national lockdown.
The transport sector has the smallest number of key actions and none in thearea of establishing targets and setting policy signals. The Green Transport
Strategy was one of the earliest South African policies that included a rolefor fuel cell technologies and hydrogen. Hence the focus over the next three
years should be on speeding up the implementation of the Green Transport
Strategy through the harmonisation of standards while supporting demand
creation through public procurement in buses and government fleets, thus
scaling up domestic consumption of hydrogen in the transport sector.
The aspirations of the Minerals Beneficiation Strategy will be fast-tracked if
the draft Beneficiation Masterplan is finalised and aligned with the HSRM.
The opportunity to provide value-added products and components to both
the domestic and export market will require that the manufacturing sector
prioritise the harmonisation of standards for locally developed technologies.
The 70 key actions are summarised in Figures 3.4 and 3.5 while Figure 3.6
gives some numbers for key indicators such as electrolyser capacity, hydrogenproduction and jobs expected from implementing some of the catalytic
projects discussed in Chapter 5, as well as some key actions and milestones.

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SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

3. BUILDING BLOCKS FOR A SOUTH AFRICAN HYDROGEN SOCIETY (CONTINUED)HYDROGEN PRODUCTION,
STORAGE, DISTRIBUTIONESTABLISH TARGETS AND
POLICY SIGNALS• Finalise Green Hydrogen Commercialisation
Strategy to support HSRM
• Revise NDCs taking into account GH2 tosupport a move towards a net-zero economy
especially in hard-to-abate sectors• Complete feasibility study on water resource
availability and desalination• Complete feasibility studies on new H2corridors and valleys in SA• Finalise Just Transition Framework• Develop grey H2 phase-out plan if green H2reaches parity
MITIGATE INVESTMENT RISK
• Gazette Strategic Integrated Infrastructure
Project on Hydrogen• Revise Critical Infrastructure Programme
Framework

CREATION OF EXPORTMARKET FOR SA
GREEN HYDROGENESTABLISH TARGETS AND
POLICY SIGNALS• Develop hydrogen export strategy to
inform business case for green H2(including derivatives) export
MITIGATE INVESTMENT RISK
• Conduct market analysis identifying
export opportunities, obstacles andgaps including potential partners andinvestors• Put in place international partnerships
with key countries willing to purchase
GH2• Expand regional cooperation/
partnerships on GH2• Integrate H2 exports into existing
national port and rail strategies• Invest in rail and port infrastructure to
support GH2 export

HARMONIZE STANDARDS ANDREMOVE BARRIERSHARMONIZE STANDARDS ANDREMOVE BARRIERS• Improvement of grey H2 infrastructure
including technology upgrade• Participate in relevant task teams onhydrogen certification and hydrogen
trade rules of the IPHE
• Review, develop and publish harmonizedpolicy, regulations, codes to ensure GH2
export by 2024

STRATEGIC DEMONSTRATION AND
DEPLOYMENT PROJECTS• Pilot CCUS in Mpumalanga Priority Area
• Pilot CCUS on a national scale
PROMOTE RDI• Develop RDI Strategy to support HSRM
• Establish international partnerships to
support electrolyser research• Call for proposals on improving cost andefficiency of hydrogen solutions
SKILLS DEVELOPMENT AND
PUBLIC AWARENESSPROMOTE RDI• Invest in RDI focused on the mostefficient generation, storage and shipping
methods to make SA green H2 costcompetitive• Continue to invest in RDI focused on themost efficient generation, storage andshipping methods to make SA green H2
cost competitive• Continue to innovate to remain globallycompetitive for GH2 export

DECARBONISATIONOF INDUSTRYESTABLISH TARGETS AND
POLICY SIGNALS• Develop policies and strategies that
stimulate demand for hydrogen-related
applications in the energy-intensive
industries (mining, cement, steel,refineries)• Align Steel Masterplan to the HSRM
MITIGATE INVESTMENT RISK
• Develop local market framework withincentives that support domestic
consumption of GH2 and ammonia in
industry• Feasibility studies on developinghydrogen industrial hubs at South African
ports that link with shipping, truck andaviation routes• Provide incentives for companies tostart using GH2 and ammonia for power
generation to create domestic demand
HARMONIZE STANDARDSAND REMOVE BARRIERS• Reduce the administrative timelines
required for approval for self-generation
projects
SKILLS DEVELOPMENT AND
PUBLIC AWARENESS• Establish a national Hydrogen Industry
Association tasked with advocacy forhydrogen and stimulating investment in
the industrial sector
STRATEGIC DEMONSTRATION
AND DEPLOYMENT PROJECTS• Convert heavy goods vehicles (HGVs)
for mining into hydrogen fuel cell
powered vehicles as part of showing
proof of concept

DECARBONISATION
OF TRANSPORT SECTORSMITIGATE INVESTMENT RISKENHANCED AND GREEN
POWER SECTORESTABLISH TARGETS AND
POLICY SIGNALS• Create an enabling environment forinvestment in refuelling infrastructure• National electrification plan to be divided
into main and micro-grids• Classification of hydrogen as atransport fuel• Finalise the Renewable Energy Masterplan• Update the NDCs to align with HSRM
with a specific focus on the power
generation sector

HARMONIZE STANDARDS ANDREMOVE BARRIERS• Develop policy and regulatory
framework that incentivises or rewards
transport users that use hydrogen as afuel to generate scale• Develop regulations, codes, andstandards for hydrogen refuelling• Develop regulatory framework to
support zero emission transport acrossall modes (road, rail, ship)
SUPPORT DEMAND CREATION• Conduct feasibility studies to develop
demand-driven business cases formunicipal transport, heavy goodvehicles, buses and taxis• Scale up conversion of government
fleets and municipal vehicles to usehydrogen as a fuel
STRATEGIC DEMONSTRATION
AND DEPLOYMENT PROJECTS• Implement refuelling station pilots forbuses, heavy goods vehicles and taxis• Prepare a position paper to specificallyfund H2 use in subsectors (buildings,
micro-grids)
HARMONIZE STANDARDS ANDREMOVE BARRIERS• Develop a national set of standards onenergy within the built environment toenable use of H2 in buildings• Incorporate and couple H2 production
into existing PPA• Revise IRP to include hydrogen gas for
power generation
SUPPORT DEMAND CREATION• Subsidies to telco applications for FC
deployment to scale up• Use public procurement to stimulatehydrogen and FC demand in publicbuildings sector• Adopt hydrogen and FCs to power
critical infrastructure• Connect households to either main or
micro-grids using FCs• Solar Research Facility plan approvedfor funding
STRATEGIC DEMONSTRATION
AND DEPLOYMENT PROJECTS• Pilot fuel cells in informal settlements
keeping the same standards as main grid

• Develop a communication plan to promoteawareness of hydrogen across all sectors

ESTABLISH TARGETS AND
POLICY SIGNALS• Finalise Beneficiation Masterplan• Conduct study and develop export
strategy for H2 products and FC
components• Develop GH2 product and component
manufacturing strategy and businesscases aligned with Automotive
Masterplan and Minerals Masterplan
HARMONIZE STANDARDSAND REMOVE BARRIERS• Adopt and implement regulatory
framework including establishing
independent H2 product and component
testing and verification facilities
SUPPORT DEMAND CREATION• Develop a policy framework thatincentivises the use of locallymanufactured components in various
applications (FC vehicles, stationary
FCs, electrolysers)
MITIGATE INVESTMENT RISK
• Develop strategy for attracting FDI invehicle manufacturing sectors• Implement manufacturing strategy incollaboration with global OEMs
PROMOTE RDIPROMOTE RDI• Pilot fuel cells in data centres for proof
of concept• Establish an overarching body to coordinate
relevant players in the quadruple helix aroundhydrogen economy

CENTRE OF EXCELLENCE
IN MANUFACTURING• Develop and implement RDI strategy tosupport H2 product and component
manufacture
SKILLS DEVELOPMENT AND
PUBLIC AWARENESS• Identify skills needed to support theimplementation of the manufacturing
strategy and develop a skills development
roadmap

SKILLS DEVELOPMENT AND
PUBLIC AWARENESS• Develop framework for reskilling people andpreserving jobs in sectors affected by transition• Create awareness of hydrogen economy
through different building-related bodies
around H2 and HFCT in buildings• Establish international partnerships to scale up
training required for hydrogen economy• Develop a skills development roadmap whichspans across TVETs, UoTs and universities• Create a marketing and advocacy planfor hydrogen use in the electricity sector(main, micro-grid)

SUPPORT DEMAND CREATION• Implement catalytic projects such as• Boegoebaai SEZ, Platinum Valley Initiative(SA’s Hydrogen Valley) CoalCO2-X• Demonstration and SAF project

38

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

Figure 3.4: Summary of key actions_1

Figure 3.5: Summary of key actions_2

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SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

3. BUILDING BLOCKS FOR A SOUTH AFRICAN HYDROGEN SOCIETY (CONTINUED)

2021-2024

2025-2030

2030-2040

PRODUCTION• Small scale electrolysis production• At least 1MW GH2 production piloted

PRODUCTION• 5GW electrolysis capacity underconstruction in NC• 10GW electrolysis capacity deployedin NC by 2030
• 1.7GW electrolyser capacity deployedin H2 Valley by 2030
• At least 500kt H2 produced annuallyby 2030

PRODUCTION• Increase electrolysis capacity to at least 15GW by 2040

USE
• At least 100 buses and trucks powered by H2 by 2025
• At least 20 forklifts converted to fuel cell power by 2025
• At least 5 refueling stations deployed by 2025
• Demonstration in power generation and stationary fuel cells inpublic buildings• Industry demonstration including SAFs

USE
• At least 500 buses and trucks powered by H2 by 2030
• Power generation in turbines using H2 and ammonia• Sector coupling and use in transport, industry

USE• Sector coupling and full use in transport, industry and power
Co-generation

Renewableenergy resources

Smart energy
system control

Centralised fuel production,
power and storage

Surplus heatEV

H2 vehicle

JOBS

JOBS

JOBS

• Upscaling of training and reskilling for new jobs

• At least 20 000 jobs created annually by 2030

• At least 30 000 jobs created annually by 2040

Establish targets
and policy signals

Support demand
creation

Mitigate
investment risk

Harmonize
standards andremove barriers

Promote Research,
Development
and Innovation

Strategic
demonstration anddeployment projects

Skills development
and publicawareness

Figure 3.6: Some high-level numbers on the catalytic projects and some key actions and milestones

40

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SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

4.

SOUTH AFRICAN HYDROGEN-SOCIETY OUTCOMES

Mining Haul Truck at rock dump at the Mogalakwena Platinum Mine
Source: Anglo American Platinum
The six high-level outcomes of the HSRM are each represented graphically(Figures 4.1 to 4.9) to give the high-level objective/s, the levers of change aswell as the stakeholders who are expected to take a lead in the proposed anddetailed action plans provided in the corresponding tables (tables 4.1 to 4.6).
The action plans are proposed over the following timeframes:•

Short term: 2021-2024;•

Medium term: 2025-2030 and 2030-2040; and•Long term: 2040-2050.

4.1 DECARBONISATION OF
TRANSPORT
According to the global Hydrogen Review Report 2021, the transport sector
accounts for 20% of global GHG emissions, and 25% of final energy demand,
mostly due to the use of oil products.58 While the use of hydrogen in thetransport sector has historically stayed below 0.01%, hydrogen and hydrogenbased fuels offer opportunities to reduce emissions, particularly in heavy-duty
trucks, shipping and aviation. In a net-zero emissions scenario, hydrogen andhydrogen-based fuels are expected to contribute more than 25% of totaltransport energy demand by 2050, up from 2.6% in 2030. In this scenario,
more than 15 million fuel-cell electric vehicles (FCEVs) are projected acrossall modes, but the bulk of them will be in the light-duty segment.
Globally, more than 40 000 FCEVs were on the road by June 2021, most ofthem passenger vehicles. However, hydrogen-powered heavy-duty trucks andtrains are also making their way into the market. In addition, pilot projects havestarted in shipping and aviation, with commercial fuel-cell flights expectedaround 2035. In the materials-handling segment, more than 40 000 fuel-cellforklifts are currently in operation in the USA.

In South Africa, the transpor t sector is responsible for 10.8% of national
GHG emissions, with road transpor t accounting for 91.2%.59 The GTS
2018 advocates for the adoption of electric vehicles (battery and fuel-cell
powered) to reduce emissions in the transpor t sector. To date, there areover 300 battery electric vehicles in South Africa, while hydrogen fuel cells
have been demonstrated in a mining locomotive, in golf car ts, forklifts andscooters. As a follow-up to the mining locomotive project, Anglo American
Platinum plans to test a fuel-cell mining truck at its Mogalakwena Minein Limpopo. The South Africa Hydrogen Valley Feasibility Study Repor t
proposes catalytic projects in the mobility sector, which will involvehydrogen fuel-cell powered buses, forklifts, and heavy-duty and mining
trucks (see Chapter 5 for fur ther details).60
The total cost of ownership (TCO) for heavy-duty trucks is 10-45%
higher than for diesel trucks, but is predicted to drop 30-40% by 2030 and
50-60% by 2050, mainly due to the scale-up of manufacturing of fuel cells,
station components and hydrogen-production technologies, coupled withincreased hydrogen refuelling-station utilisation. Depending on refuellingand charging-infrastructure utilisation, fuel-cell and battery electric trucks
have comparable TCOs at a range of 500 km. Beyond 500 km, fuel-celltrucks are expected to have a lower TCO.
The HSRM suppor ts the objective of decarbonisation of transpor t by
2050. The initial focus will be road transpor t, which accounts for the
majority of transpor t emissions, and where the technology is mostdeveloped to use hydrogen to power heavy-duty vehicles (Figure 4.1).
Rail, shipping and aviation will be addressed in the medium term (20252030). A summary of the proposed actions for the decarbonisation oftranspor t is given in Table 4.1.

58. Global Hydrogen Review 2021, International Energy Agency.
59. GTS 2018.
60. South Africa Hydrogen Valley Final Report, October 2021.2

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SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

4. SOUTH AFRICAN HYDROGEN-SOCIETY OUTCOMES (CONTINUED)

Other relevant policies:• Automotive Masterplan• Renewable Energy Masterplan• Green Transport Strategy
This TOC relates principally to HGVtransport and will need to be adjusted
for rail, shipping and aviation

Links to other HSRM outcomes:• Decarbonisation of heavy
vehicles, shipping, aviation, rail*• Net zero carbon emissions by 2050
• Number of fuel cell vehicles
registered and operating• Disaggregated by local manufacturevs imported and vehicle type
• Refuelling infrastructure in place• Centre of Excellence in Manufacturingfor H2 products and fuel cell components• Green H2 generation industry• Just transition

PHASE 1PHASE 2

Regulatory
framework that:• Shows a clear
pathway to zero
emissions transport• Requires justtransition• Removes regulatory
barriers• Fiscal frameworkthat incentivises
zero emissions
transport• Establish
procurement
requirement
for zero carbon
transport• Facilitate
investment
in greenvehicles andinfrastructure• Establish
competitive
local supplyof zero carbon
vehicles• Regulatory review• Identify and consult
on new regulations,codes and standards• Publish framework• Implement policy,
regulations, codesand standards• Evaluate, selectand implement
incentives for thepurchase of H2
vehicles (taxrelief, subsidy)• Remove subsidy
on fossil-fuelledtransport• Central andlocal government
set policy to buy
H2 vehicles/
specify zerocarbon shipping/travel• Encourage major
corporate buyers
to follow suit

• Finance available
for purchase of
H2 vehicles
on competitiveterms• Finance forinvestment infuelling
infrastructure• Encourage local
manufacture of
H2 vehicles
through SEZ,
tax relief, R&D
support andsubsidy• Discourage
imports throughtariffs

Department ofTransport, DMRE

DSI identifies
and assesses
then negotiateswith otherdepartments

Department ofTransport
supported by
DSI

DSI and DoT
engage donors
and DFIs toestablish blended
finance facility

DTIC

Figure 4.1: Theory of change for decarbonisation of heavy vehicles, shipping, aviation and rail

43

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

Developmentof skills for
manufacture,
maintenanceand operationof vehicles• Identify skills
needed• Develop skills
development
strategy• Implement
skillsdevelopment
strategy

DSI/
DHET/
TVET

Knowledge
and technicalcapacity inplace• R&D strategy
to support
and pilot H2
vehiclemanufacture
andinfrastructure
for fuelling

DSI

An aerial view of the Solar PV plant for on-site hydrogen production at the
Mogalakwena Platinum Mine
Source: Anglo American Platinum

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SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

4. SOUTH AFRICAN HYDROGEN-SOCIETY OUTCOMES (CONTINUED)

Table 4 1: Action plan for decarbonisation of heavy vehicles, shipping, aviation and rail

SECTOR: ROAD TRANSPORTACTIONCHAMPIONSUPPORTING INSTITUTIONS OR
ORGANISATIONS

HOW WILL GESI/JUST TRANSITION AND RDI BE
INCLUDED?

HOW WILL WE MONITOR PROGRESS?

2021-2024
1. Develop policy and regulatory framework that incentivises orrewards transport users that use hydrogen as a fuel to help
generate scale

DoT

DMRE, DTIC, National Treasury

2. Conduct feasibility studies to develop demand-driven businesscases for municipal transport, heavy goods vehicles, buses and
taxis

DoT

COGTA, National Treasury, metro municipalities, taxi
associations

3. Develop regulations, codes and standards (RCS) forhydrogen refuelling

DMRE

4. Implement refuelling station pilots for buses, heavy goods
vehicles and taxis

GESI: Engage women and youth in developing framework andimplications to address any job losses•

Policy and regulatory framework developed•

Number of vehicles using GH2 as a fuelRDI: Centre of Excellence on techno-economic analysis ontechnology and market readiness•Feasibility studies completed

DTIC, SABS

RDI: Research on high pressure storage•

Regulations developed and in use

Government, private sector/PetroSA/CEF

GESI: Consider participation of women-led SMMEs in the pilotingof refuelling infrastructure.

•

Number of refuelling stations in operation•% women- and youth-led SMMEs involved•

Regulatory framework developed

RDI: Centre of Excellence on techno-economic analysis on thecost of GH2 as a fuelDPE, Transnet

GESI: Consider participation of women- and youth-led SMMEs in
the framework

DMRE,

CEF, private sector

Not necessarily•

Share of hydrogen used as transport fuel7. Scale up the conversion of government fleets andmunicipal vehicles to use hydrogen as a fuel through public
procurement

GESI: Consider participation of women-led SMMEs in the supply
chains•Number of hydrogen-fuelled vehicles

DoT

DMRE, DTIC, COGTA, National Treasury, metros,
municipalities

RDI: Research on conversion technology with a focus on
performance of locally developed components•

Jobs gained/lost•

Number of women-led SMMEs involved

8. Create an enabling environment for investment in refuelling
infrastructure

CEF

SASOL/petrochemical sector/PetroSA, operators/fuelproviders

GESI: Consider role of SMMEs in the establishment, ownershipand operation of the infrastructure•

Number of SMMEs involved in the supply chain

9. Implement incentives and compliance programmes.

DTIC

DMRE/National Treasury, DOT, private sector

GESI: Consider participation of women- and youth-led SMMEs in
the incentive schemes•

Uptake of the incentives•% women- and youth-led SMMEs involved

5. Develop a regulatory framework to support a zero emission
transport across all modes (road, rail, ship)

DoT

6. Classification of hydrogen as a transport fuelRDI: SARChI on legislative and regulatory frameworks

2025-2030

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4. SOUTH AFRICAN HYDROGEN-SOCIETY OUTCOMES (CONTINUED)

4.2 DECARBONISATION OF ENERGYINTENSIVE INDUSTRY
Industry accounts for 26% of the global energy system CO2 emissions with
6% of the industrial energy demand used to produce hydrogen. Industry
demand for hydrogen, which is used as a feedstock in chemical as well asiron and steel production, is approximately 51 million tonnes (Mt) annually.
In 2020, 65% of hydrogen went into ammonia production, 25% to methanol
production, 10% into steel production through direct reduction of ironand less than 1% was used for other industrial uses. Ammonia production
generates about 2.9 tonnes of CO2 per tonne of product while methanol
production generates 2.2 tonnes CO2 per tonne of product.
The National Business Initiative (NBI) report on decarbonising South Africa’s
Petrochemicals and Chemicals Sector61 indicates that the petrochemicals andchemicals sector, mining, manufacturing and construction, as well as minerals
and metals production contribute about 25% of the total GHG emissions inSouth Africa. Just over 50% of those emissions come from the petrochemicals
and chemicals sector. It South Africa’s four crude oil refineries need ZAR6070 billion investment for upgrades to Clean Fuels II Standard as well as further
investments to maintain competitiveness. Given that Clean Fuels II is effectivefrom 2023, petrochemicals imports are expected to increase significantly up
to 2030, as a result of the potential decline in domestic refinery capacity.
However, depending on the speed at which the transport sector decarbonises,

1 240

206

the NBI report projects that demand for conventional liquid fuels could dropby 50-100% due to the replacement by decarbonised alternatives.
One of the key findings from the NBI report is that South Africa has theopportunity to use green hydrogen and sustainable sources of carbon to
decarbonise its petrochemicals and chemicals sector (responsible for 13%of the GHG emissions) to become a leading producer of green fuels andchemicals for both the domestic and export market.
In this regard, the South African industry needs to decarbonise in response to
the changing global trade environment. The EU, South Africa’s biggest trading
partner by revenue (Figure 4.2) intends to implement the Carbon Border
Adjustment Mechanism in 2023, which could have a negative impact on
South Africa’s exports.
The HSRM will support the objective of decarbonisation of industry by 2050.
The initial focus will be on the steel, mining, chemicals, refineries and cement
sectors (Figure 4.3) which together account for the majority of energy used
in industry.

Trading partners
with a net-zerotargetEU plans to implement carbon
border adjustment by 2023
226

Carbon bordertax planned
113
84
64

World

AfricanEuropeanCountries
Union

China

UnitedStatesUnitedKingdom

Source: World Integrated Trade Solution. 2018. ‘Press research.’

Figure 4.2: Volumes of South Africa’s exports to leading partners in 2018 (ZAR billion)
Source: NBI Report 2021

61. Decarbonising South Africa’s Petrochemicals and Chemicals Sector, NBI Report 2021.

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HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

59

Japan

59

India

25

24

Republic United Arabof Korea Emirates

19

361

Hong
Kong

Other

SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

4. SOUTH AFRICAN HYDROGEN-SOCIETY OUTCOMES (CONTINUED)

Other relevant policies:• Industry Masterplans• Renewable Energy Masterplan• National Development Plan
• Economic Reconstruction and Recovery Plan

Regulatory
framework that:• Shows a clear
pathway to zero
emissions industry• Requires justtransition• Removes regulatory
barriers• Fiscal frameworkthat incentivises
investment indecarbonisingintensive
industry• Regulatory review• Identify and consult
on new policy,
regulations, codesand standards• Publish framework• Implement policy,
regulations, codes

DTIC, DMRE

Links to other HSRM outcomes:• Decarbonisation ofenergy-intensive industry(steel, chemicals, mining,refineries, cement)*• Net-zero carbon emissions
by 2050• Tonnes of productproduced using greenhydrogen• Centre of Excellence in Manufacturingfor H2 products and fuel cell components• Green H2 generation industry• Just transition• Build confidence
in and ability to
deploy innovation• Facilitate
investment indecarbonisingindustry• Establish skills
and knowledge
base to ensuretransition to
H2 industry• Industry
commitment todecarbonisation• Infrastructure inplace to supply
H2 to industry• Evaluate, selectand implement
incentives forinvestment in H2
technology (taxrelief, subsidy)• Remove subsidy
on fossil fuels• Research,development anddemonstration
through industrial
clusters• Work withdonors and DFIs
to establish
financingmechanisms• Encourage private
investment withfavourable
policies• Work with,industry,
universities, TVET,
etc. to identify
skills needed
and develop askills development
strategy• Policy measures,
e.g. carbon tax,
fossil fuel levies• Work withindustry andindustry bodies
to support
commitment todecarbonisation• Facilitate
investment ingeneration/transmission/storage toprovidesufficient H2 forindustry’s needs

DTIC, DMRE

DSI, Platinum
Valley, Limpopo

DSI and DTIC
engage donors,
DFIs and private
investors

DSI, DTIC,
TVET, etc.

DSI, DTIC

DTIC, DMRE,
Infrastructure SA

Figure 4.3: Theory of change for decarbonisation of energy-intensive industry

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4. SOUTH AFRICAN HYDROGEN-SOCIETY OUTCOMES (CONTINUED)

Table 4.2: Action plan for decarbonisation of energy-intensive industry

ACTIONCHAMPIONSUPPORTING INSTITUTIONS OR
ORGANISATIONS

HOW WILL GESI/JUST TRANSITION AND RDI BE
INCLUDED?

HOW WILL WE MONITOR PROGRESS?

PICC/DMREGESI: Membership of women- and youth-led SMMEs paid by the
DTIC•% of membership which is women and youth

Not necessarily•

Study completed; hydrogen industrial hubs identified

Not necessarily•

Policy revised and approved

Not necessarily•

Policies developed and approved

GESI: Set aside opportunities for youth- and women-led businesses•% women- and youth-led businesses involved in the value chain•

MWh of electricity generated•% women-led SMMEs in approved projects•

Number of incentives in place•

Tonnes of GH2 used•

Number of HGVs converted•% women-led SMMEs involved•

Number of incentives in place•

Tonnes of GH2 used•

Number of HDVs converted•% women-led SMMEs involved•

Number of incentives in place•

Tonnes of GH2 used•

Number of HGVs converted•% women-led SMMEs involved•

Number of incentives in place•

Tonnes of GH2 used2021-2024
1.

Establish a national Hydrogen industry association tasked
with advocacy for hydrogen and stimulating investment in
the industrial sector

DTIC/NBI

Conduct feasibility studies on developing hydrogen
industrial hubs at South African ports that link withshipping, truck and aviation routes

DTIC/IDC

3.

Align Steel Masterplan to the HSRM

DTIC

4.

Develop policies and regulations that will stimulate demandfor hydrogen-related applications in the energy-intensive
industries (mining, cement, steel, refineries)

2.

Private sector
DSI
Private sector
SAISI
DMRE, DTIC
private sector

5.

Develop the local market framework with incentives that
support domestic consumption of green hydrogen andammonia

National
DTIC

6.

Reduce the administrative timeframes required forapproval for self-generation projects

DMRE/NERSAGESI: Consider role of women-led SMMEs in approved projects

7.

Provide incentives for mining companies to start usinghydrogen for power generation to create domestic
demandNationalDMRE

GESI: Participation of women and youth in incentive schemes

Convert the heavy goods vehicle for mining into hydrogenand fuel-cell-powered vehicles as part of showing proof ofconcept

DoT

Minerals Council SA

GESI: Participation of women- and youth-led SMMEs in the supply
chainsContinue incentives for mining companies to use hydrogenfor power generation until the penetration has reacheda level where the niche market no longer needs to besupported

DMRE

National Treasury, Minerals Council SA

GESI: Participation of women and youth in incentive schemesContinue to convert the heavy-duty vehicle for mining intohydrogen and fuel-cell-powered vehicles aligning with thetargets set out in the HSRM for the 2025-2030 timeframe

DoT

DMRE

GESI: Participation of women- and youth-led SMMEs in the supply
chains

Review incentives for mining companies to use hydrogenfor power generation until the penetration has reacheda level where the niche market no longer needs to besupported

DMRE,

National Treasury, Minerals Council SA

GESI: Participation of women and youth in incentive schemesContinue to convert the heavy goods vehicle for mining
into hydrogen and fuel-cell-powered vehicles aligningwith the targets set out in the HSRM for the 2030-2040
timeframe

DoT

DMRE, NAAMSA: ABC

GESI: Participation of women- and youth-led SMMEs in the supply
chainsDMRE

National Treasury, Minerals Council SA

GESI: Participation of women and youth in incentive schemes

8.

Treasury/

Treasury/2025-2030
9.

10.

2030-2040
11.

12.

2040-2050
13.

49Continue incentives for mining companies to start usinghydrogen for power generation until the penetration hasreached a level where the niche market no longer needs
to be supported

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONHYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

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SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

4. SOUTH AFRICAN HYDROGEN-SOCIETY OUTCOMES (CONTINUED)

4.3 CREATION OF AN EXPORTMARKET FOR SOUTH AFRICANHYDROGEN
The IEA Net-zero study62 projects global hydrogen use to increase fromabout 90 Mt in 2020 to more than 200 Mt in 2030, with a corresponding
increase in the share of low carbon hydrogen from 10% to 70%, split equally
between green hydrogen and blue hydrogen. In 2050, the IEA projects a
global hydrogen demand of 530 Mt, with a 60:40 split between green andblue hydrogen respectively. Figure 4.4 indicates Japan’s intention to importhydrogen and therefore could be a potential market for South African GH2.

PHASE: 1
INSTALLATION FUEL CELL

2020
Tokyo Olympics/Paralympics

2030

2040

2009: Residential FC
2014: FCV
2017: Stationary FC around 2020:• PECF; 800 thousand yen
SOFC; one million yen• FCV fuel cost ≤ HEV fuel cost
HS; About 160 in total
FCV; About 40 thousands in totalaround 2025:• FCV towards volume zone
• FCV cost competitive ≥ HEV
HS; About 320 in total
FCV; About 200 thousand in totalaround 2030:
FCV; About 800 thousand in total
FCV: Fuel Cell Vehicle
HS: Hydrogen Station
HEV: Hybrid Electric Vehicle

South Africa currently produces 2 Mt of the global demand of hydrogen, all ofwhich is grey hydrogen produced mostly from natural gas by Sasol. According
to the NBI report63 on decarbonising South Africa’s power system, thecountry could produce green hydrogen at a competitive price of USD1.60
per kg by 2030 due to its excellent renewable energy resources. The useof green hydrogen in South Africa’s power sector could replace natural gas
in electricity generation and energy storage, stimulating a local demand of
1.4 Mt in green hydrogen by 2050.

PHASE: 2

PHASE: 3

H2 POWER PLANT/MASS SUPPLY CHAIN

CO2-FREE HYDROGEN• Accelerated RD&D
• Realize reasonable H2 priceSecond half of 2020:• H2 Cost (CIF):
JPY30/Nm3• Enhance Supply Chain in Japanaround 2030
• Import H2 from overseas• Full-scale H2 power plant

Around 2040:• Full-scale CO2-free H2(w/Renewable Energy, CCS, etc)

Figure 4.4: Extract from the Japanese roadmap indicating their interest in importing hydrogen

One of the key outcomes of the HSRM will be the creation of an export
market for SA green hydrogen as illustrated in Figure 4.5. International climate
commitments will drive the demand for green hydrogen. Demand from

62. International Energy Agency, Net-zero study.
63. Decarbonizing South Africa’s Power System, NBI Report Chapter 1.

51

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

international buyers will be influenced by South Africa’s green hydrogen costcompetitiveness, confidence in the South African hydrogen market, and an
enabling export infrastructure.

SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

4. SOUTH AFRICAN HYDROGEN-SOCIETY OUTCOMES (CONTINUED)

Relevant policies guiding:

Other HSRM outcomes:• Creation of export market for
SA Hydrogen• Million tonnes green H2
exported (disaggregated byproduct)• Rand (bn) export earnings• Renewable Energy Masterplan• Economic Reconstruction
and Recovery Plan
• Minerals Beneficiation• H2 generation, storage and distribution
industry established• Green and enhanced power sector
and buildings

Note: Dedicated GH2 generation capacity may berequired for the export market if the availability of
GH2 is constrainedInternational
commitments

International
demand• Market analysis• Identify export obstacles- tariffs, standards• Export strategy forgreen H2
• Business caseestablished• Negotiate purchasing
commitments• Partnerships established/
maintained

DTIC lead
Private sector

Confidence
in SA market
and green H2• Review policy,
regulations, codesand standards, andlegislation to ensure
green H2 as export
opportunity by 2022
• Identify, harmoniseand consult Publish
and implement by2024

Enabling export
infrastructure

H2 infrastructure
investment in:• Domestic H2
generation, storage
and distribution• Export H2 storage
and port
infrastructure

DTIC leadwith SABS,
DFFE, DMRE,
NERSA

Cost
competitiveness(LCOE of GH2)

• R&D into mostefficient generation,
storage and shipping
methods at scale confirm that SA green
H2 cost competitive
with LNG (e.g.
increase efficiency anddurability of waterelectrolysis, reduce
cost)

DTIC leadwith SOEs,
ISA, Transnet• Review of supply
barriers by 2023
(e.g. tariffs oncomponents, land use
controls)• Propose adjustments
to fiscal and policy
environment• Implement by 2025

DSI lead withHySA, private
sector, SOEs,
SANEDI

Figure 4.5: Theory of change for the creation of an export market for SA green hydrogen

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SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

4. SOUTH AFRICAN HYDROGEN-SOCIETY OUTCOMES (CONTINUED)

Table 4.3: Action plan for the creation of an export market for SA green hydrogen

SECTOR: HYDROGEN EXPORTACTIONCHAMPIONSUPPORTING INSTITUTIONS OR
ORGANISATIONS

HOW WILL GESI/JUST TRANSITION AND RDI BE
INCLUDED?

DTIC lead

DIRCO
Private sector

Just Transition: Just transition considered in discussions withpotential investors

HOW WILL WE MONITOR PROGRESS?

2021-2024
1. Conduct market analysis that will identify the export
opportunities, obstacles and gaps, as well as potential partners
and investors
2. Put in place international partnerships with key countries
willing to purchase GH2

DIRCO

DTIC, DSIGESI: Targets for women- and youth-led SMMEs in partnerships

3. Expand regional cooperation/partnerships on GH2

DIRCO

DSI, SADCGESI: Consider GESI in partnerships and supply chains

DTIC lead

DIRCO
National Treasury, DPE, private sector

GESI: Targets for women- and youth-led SMMEs considered inexport strategy

4. Develop a hydrogen export strategy to inform the businesscase for green H2 (including derivatives) export
5. Participate in relevant task teams on hydrogen certificationand hydrogen trade rules of the IPHE

in facilitating participation by DTIC and DFFEDSI lead

GESI: Targets for women participation in task teams

International demand•

Number of potential partners and investors engaged•

Number of secured partnerships•% women- and youth-led SMMEs involved•

Investment made in support of regional integration•

Tonnes of GH2 traded across the region•

Approved GH2 export strategy•

Markets identified•

Business cases developed•

International codes and standards adopted for use in South
AfricaLocally produced H2 products traded on the global market•

RDI: Centre of Excellence on legislative and regulatory
frameworks

Harmonised regulatory environment and investments madein GH2,•

Confidence in SA GH2 market•

Cost competitiveness (LCOE of GH2)•

Number of facilities earmarked for or dedicated to GH2
export•Number of partnerships established•

Strategy implemented•

Purchasing commitments made•Tonnes of GH2 exported•

Investments made in GH2-related projects•

Tonnes of GH2 produced

7. Invest in RDI focused on the most efficient generation, storage
and shipping methods to make SA GH2 cost competitive

DSI
lead
SANEDIwith

Private sector, SOEs

RDI: Centre of Excellence on techno-economic analysis

8. Integrate hydrogen exports into existing national port and rail
strategies

DTIC lead
Transnet,

with

CEF, ISAGESI: Address job losses/negative effects)

DFFE

•

•

DTIC
SABS

with

International commitments

Not necessarily

6. Review, develop and publish harmonised policy, regulations,codes and standards, and legislation to ensure green H2 asexport opportunity by 2024

lead

•

2025-2030
9. Implement export strategy including negotiation of purchasing
commitments, establishing partnerships, and commence
exports
10. Adopt and implement harmonised policy, regulations, codesand standards, and legislation for GH2 export

DTIC
SABS

11. Invest in rail and port infrastructure to support GH2 export

DTIC lead ISA

12. Invest in RDI focused on the most efficient generation, storage
and shipping methods for SA GH2 to be cost competitive

DIRCO

DTIC lead

lead

DSI
lead
SANEDI

National Treasury, DPE, SOEs (Transnet, CEF)
with

with

GESI: Targets for women- and youth-led SMMEs in supply chainDFFEGESI: Targets for women- and youth-led SMMEs in supply chain

DFIs (IDC, DBSA), SOEs (CEF, Transnet)

GESI: Action plans to address job losses/negative effects) and insupply chains•

Enabling export infrastructure•

Dedicated green hydrogen generation capacity

HySA, private sector, SOEs,

Just Transition: Consider just transition in the recruitment of
RDI personnel and human capital development•

Cost competitive GH2•Intellectual property rights filed/granted

National Treasury, DPE, private sector

GESI: Targets for women- and youth-led SMMEs in supply chain•

Tonnes of GH2 exported•% of global GH2 market

HySA, private sector, SOEs

RDI: Centre of Excellence on techno-economic analysis•

Cost competitive GH2•Intellectual property rights filed/granted

2030-2040

53

13. Implement export strategy including commercial export andincreasing market size

DTIC lead,

14. RDI – continue to innovate to remain globally competitive forGH2 export

DSI
lead
SANEDIHYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONwithHYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

54

SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

4. SOUTH AFRICAN HYDROGEN-SOCIETY OUTCOMES (CONTINUED)

4.4 CENTRE OF EXCELLENCE
IN MANUFACTURING FOR
HYDROGEN PRODUCTS AND
FUEL CELL COMPONENTS
The cost of fuel cells for the automotive sector has fallen by close to 70%
since 2008. Current system costs are in the range USD250-400 per kW
with projections indicating that scaling up manufacturing from 1 000 to 100
000 systems per year would reduce costs by more than 70%. Global fuelcell manufacturing capacity is expected to exceed 200 000 systems per year
by end of 2021 and to reach 1 300 000 systems a year by 2030 based on
announcements. Technology development aimed at improving cell durability,
cost reduction and improving efficiency are required. Key research anddevelopment focus areas include the PGM-based fuel cell catalyst, membranes
and electrolytes, as well as bipolar plates.
The average platinum loading on fuel cells has decreased by 30% since 2008,
without a decrease in performance. While palladium demand will drop
through the replacement of ICE by FCEVs because of the high palladium
content in catalytic converters, platinum demand is expected to increase
despite the reductions in the platinum loading in fuel cells, mainly due to theincreased adoption of fuel cell technology.

The establishment of a manufacturing sector for hydrogen products andcomponents is one of the key outcomes for the HSRM (Figure 4.6), which
will encourage inward investment and support the Just Labour Transition
by providing high quality jobs. This sector will support the transition from
ICE to electric vehicle manufacturing, produce products for export and willcontribute to the beneficiation of South African minerals through the supplyof value-added components in the hydrogen value chain. Potential alreadyexists to manufacture hydrogen fuel cells, electrolysers, membrane-electrodeassemblies (MEAs) and their subcomponents.
To drive this sector development, a clear regulatory and investment
environment is needed which incentivises the manufacture of hydrogenproducts and components as well as an innovative culture developinghydrogen products and processes and the associated skilled workforce.

A student at HySA Catalysis-University of Cape Town, examining a membraneelectrode assembly (MEA)55

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
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4. SOUTH AFRICAN HYDROGEN-SOCIETY OUTCOMES (CONTINUED)

Relevant policies guiding:• Automotive Masterplan Economic• Reconstruction and Recovery Plan
• Minerals Beneficiation EV Industry• Roadmap Green Transport StrategyCorematerials
availability
PGM steel• Develop
manufacturing
strategy (incl.
components to
manufacture vs.
buy and IP vs.
License by• 2023
Implement
strategy

DSI with
HySA, DTIC,ASCCI +
Minerals
Council

DMRE
Mining/Industry
supplyClear
regulationand policy• H2 generation, storage and distribution
industry established• Decarbonisation of transport sector:
heavy duty vehicles, shipping, aviation, rail*• Green and enhanced power sector
and buildings• # H2 products manufactured per year
(fuel cells, electrolysers, MEA, other)• # Businesses manufacturing H2 products(% women/women-owned/youth/
disadvantaged areas)• # High-skilled jobs (% women,
youth, skills developed, mRand

Fiscalframework
incentivises
manufactureof H2
products• Policies,
regulations, codesand standards• Evaluate andreview by 2022
select incentives• Identify andfor manufacturingconsult on new
by 2023
regulations/codes• Implement by/standards
2024• Publish regulatory• To include:
framework bycapital allowance,
2023
special economic• Implementzones,
regulation fromdevelopment
2024 (incl.
zones, subsidies,consideration oftax relief, rebates,
establishing
infrastructure
independent H2availability
product testing,and verification
facilities)

DTIC with
SABS, DEFF,
DSI, DMRE

Other HSR outcomes:

MANUFACTURING SECTOR
FOR H2 PRODUCTS AND
EXCELLENCE ESTABLISHED*DTIC withNT

Innovative
culturedeveloping H2products andprocesses

Attractive
investment
environment• Analysis toconfirm OEM
demand andinvestment
interest• Identify
partners• Establish
business case• Partnerships
established andmaintained

DTIC
with
ASCCI

• Develop R&D
strategy to• Identify skills
support H2
neededproduct• Develop an H2
manufacture
manufacturing(electrolysers, fuelskillscells, MEA,
development
sub-components)
roadmap
and SA mineral• Implement skills
beneficiation
development• Implement R&D
roadmap
strategy

DSI withHySA,ASCCI +
Minerals
Council

DHET with
DSI, HySA,
privatesectorInternational
and local
demandestablishedfor H2Skilledworkforce for
manufacture• International
market analysis• Identify export
obstacles,
tariffs,
standards• Export strategy
for H2
products• Domestic market
analysis• Encourage local
demand forpurchase of H2
vehicles andstationary FC(tax, relief,
subsidy pilot
stationary andvehicle FC H2
infrastructure
investment• H2 generation

DTIC with DoT,DMRE, DPID, DoD
DTIC

Just labour transition
through TVET College
SystemFigure 4.6: Theory of change for Centre of Excellence in Manufacturing for hydrogen products and fuel cell components

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

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SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

4. SOUTH AFRICAN HYDROGEN-SOCIETY OUTCOMES (CONTINUED)

Table 4.4: Action plan for Centre of Excellence in Manufacturing for hydrogen products and fuel cell components

SECTOR: CENTRE OF EXCELLENCE IN MANUFACTURING FOR HYDROGEN
PRODUCTS AND FUEL CELL COMPONENTS
CHAMPIONSUPPORTING INSTITUTIONS OR
ORGANISATIONS

HOW WILL GESI/JUST TRANSITION AND RDI BE
INCLUDED?

HOW WILL WE MONITOR PROGRESS?

1. Develop a GH2 product and component manufacturing
strategy and business case aligned with Automotive Masterplan
and Minerals Beneficiation Masterplan

DTIC, DSIHySA, ASCCI, OEMs, and Minerals Council

GESI: Include plans to increase % of jobs for women anddisabled
Consider location of facilities in disadvantaged areas•

Approved Commercialisation/Manufacturing Strategy

2. Conduct study and develop export strategy for H2 products
and fuel cell components

DTIC

with private sector, ASCCIRDI: Centre of Excellence on techno-economic analysis•

International demand for H2 products established•

Number of purchasing commitments in place

3. Develop a policy framework that incentivises the use of locallymanufactured components in various applications (FC vehicles,
stationary FCs, electrolysers)

DMRE, DPWI, DoD, NT, ASCCIGESI: Participation of women- and youth-led SMME incentives
developed and in procurement•

Domestic demand established for H2 products

DTIC with DoT•Targets for integrating hydrogen-related products in thedomestic market in place

4. Develop and implement RDI strategy to support H2 productand component manufacture (electrolysers, fuel cells, MEA,
subcomponents)

SANEDI, HySA, ASCCI and Minerals Council

GESI/Just Transition: Consider Just Transition in support for
local manufacturing•

Innovative culture developing H2 products and processes

DTIC with DSI•

Number of H2 products and components manufactured
locally

5. Identify skills needed to support the implementation of the
manufacturing strategy and develop a skills development
roadmap

DHET with DSISANEDI, HySA, private sector

GESI: Consider GESI in plans
Include plans to encourage women to train and enter market•

Skills development roadmap developed•% women in skilled workforce for local manufacturing

6. Develop strategy for attracting FDI in vehicle manufacturingsectors

DTIC with National
Treasury

NAAMSA: ABC

GESI/Just Transition: Participation of women- and youth-led
SMMEs in sector•

FDI investment in the manufacturing sector

7. Finalise Minerals Beneficiation Masterplan

DMRE

Minerals Council

GESI/Just Transition: Participation of women- and youth-led
SMMEs in sector•

Masterplan approved for implementation•

Establishment of testing facility•

Number of H2-related products and components tested andcertified•Fiscal framework incentivises manufacture of H2 products•

Industry awareness of policy, awareness of benefits•

Number of H2-related
manufactured locally•

Numberof(disaggregated)•

IP generated on components and system level performance

ACTION2021-2024

2025-2030
8. Adopt and implement regulatory framework including
establishing independent H2 product and component testingand verification facilities

DTIC with SABS

DSI, ASCCIGESI/Just Transition: Participation of women- and youth-led
SMMEs in product and component testing

9. Implement targeted manufacturing incentives (to include
allowances, special economic zones, subsidies, tax relief, rebates,
infrastructure availability)

DTIC with National
Treasury

private sector

GESI: Consider GESI and role of SMMEs in the supply chains

10. Implement manufacturing strategy in collaboration with global
OEMs

DSI with DTIC

OEMs, ASCCI and Minerals Council

GESI/Just Transition: Participation of women- and youth-led
SMMEs in manufacturing

11. Implement skills development roadmap and embed in existing
TVET and higher education sectors

DHET

DSI

GESI/Just Transition: Target women in recruitment of trainees

12. Conduct RDI to support H2 product and component
manufacture (electrolysers, fuel cells, MEA, subcomponents)

DSI with SANEDI,HySA, ASCCI and Minerals Council

GESI: Consider GESI in recruitment of knowledge workers

57

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

products

andcomponents

engineers/scientists/artisans

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

trained58

SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

4. SOUTH AFRICAN HYDROGEN-SOCIETY OUTCOMES (CONTINUED)

4.5 GREEN AND ENHANCED POWER
SECTOR
Fuel cells running on hydrogen, methanol or natural gas have been deployed
in residential, commercial or public buildings as well as data centres to provide
primary or back-up power. Proton exchange membrane technology has
dominated the deployments in the residential sector, spurred by government
support in the form of incentives (Japan), tax credits (USA) and renewableenergy certificates (Korea).
A number of pilot projects looking at blending of hydrogen into existing natural
gas network with a focus on hydrogen use in buildings have been initiatedglobally. These include the project at the island of Ameland (Netherlands), the
GRHYD project in France and the HyDeploy project in the UK where up to
20% hydrogen by volume was injected into the natural gas grid. The objectiveof the projects has been to assess the level of safety that could be tolerated
by existing domestic appliances.
In South Africa, fuel cells have been deployed in stationary applications toprovide backup power for telecommunications infrastructure and primary
power for public buildings (schools and hospitals), with methanol and purehydrogen used as fuel. To date, Vodacom has deployed over 300 fuel cell
units as backup power for cell phone base stations. The 100 kW fuel cell unit
(running on natural gas) at the Minerals Council building in Johannesburg
and the fuel cells deployed at 1 Military Hospital in Pretoria to provide
primary power to COVID-19 field hospitals and a vaccination centre aresome of the examples of the deployments in buildings. Further deploymentsof hydrogen and fuel cells in the building sector will depend on cost of thetechnology compared to incumbent technologies, such as diesel generatorsand supporting infrastructure. This is particularly important to provide clean
off-grid power to critical infrastructure, such as hospitals and data centres.
However, hydrogen could be a game changer in the decarbonisation of thepower sector through direct combustion in turbines as hydrogen-rich gas or
100% hydrogen. A 45 MW gas turbine operating on up to 95% hydrogenhas been in operation at a refinery in Korea for more than 20 years. Gas
turbines operating on pure hydrogen are expected by 2030, provided issuesof higher nitrogen oxide (NOx) emissions resulting from higher combustion
temperature can be addressed.
In South Africa, electricity production contributes in excess of 40% to
the overall GHG emissions.64 Hydrogen is capable of contributing to theachievement of a de-carbonised and enhanced power sector by providing RE
storage and green power to the main electricity grid, thus improving overall
grid stability as illustrated in Figure 4.7. This also includes benefits to the gas
grid via power to hydrogen/gas applications. Through micro grids, hydrogenenergy can supply back-up power to reduce power outages, supply powerfor information and communications technology applications and remoteareas/islands (off- and on-grid), provide electricity and heat to commercial
and public buildings and the residential sector. The IRP 2019 and the South
African Renewable Energy Masterplan (SAREM) are the main interconnectednational policies providing guidelines for hydrogen in the power sector.

Fuel Cell units incorporating HySA IP deployed to power COVID-19 field
hospitals at 1 Military Hospital in Pretoria-August 2020
64. Decarbonising South Africa’s Power System, NBI report Chapter 1, 2021,

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4. SOUTH AFRICAN HYDROGEN-SOCIETY OUTCOMES (CONTINUED)

MAIN GRID• FCs and H2 storage (grid stability)• MW of FCs installed; tonnes of H2 produced to store RE (includes PtG)
• MWh of energy produced from H2 energy (FCs, turbines)
IRP, SAREM

GREEN AND ENHANCED POWER
SECTOR(Energy)
Availability
Accessibility
Affordability

Attractive
investment
environment(de-risking H2
investments)

Financial
framework:• Access tofinance• Specific H2 financial
schemesin place

DTIC, DSI,
DMRE, NT,
DoT, DBSA,
IDC, PIC,
donors/DFIs
financial
institutions, CEF,
Infrastructure SA

Cost
competitiveness(LCOE of GH2)

Enabling
infrastructure
and policy supports
H2 anddisincentivises
CO2 intensivealternatives

Policy:• H2 specific favourable
and integrated policy isset (subsidies for GH2);
fiscal measures are inplace• Renewable energy
surplus is available andgeographically
distributed; Diesel
Gensets replacement

DTIC, DFFE,
DSI, DMRE, NT,
DoT, SA Bureauof Standards,
SADC, National
Energy Regulator

MICRO/ISLAND GRID
• Back-up power (Number of power outages; MW of FCs installed)• ICT applications (MW of FCs installed)• Remote areas/islands (MW of FCs installed)• Buildings (commercial, public, residential, includes CHP and H2 boilers)(MW of FCs/H2 power installed in buildings, electric and thermal)

Complianceand Regulation

Regulatoryenvironment:• H2 regulation, codesand standards inplace for power grids(main and micro/island)

DSI, DMRE,
DHET, HySA,
private sector,
SOEs, SADC,SANEDIPl Valley and
Limpopo S&T
Park, CEF

Local
demand for
GH2, green
products (synfuels,
ammonia)• Demonstration andpilot projects formarket development;
includes industrial
clusters, informal
settlements, PPAs
• Power and heating

TVET

International
commitments(H2 production
scale-up)

Raw materials
available:
water, PGMs, etc.

Skills development
National andinternational
partnerships
are developed
R&D andinnovation

DTIC, DFFE,
DIRCO, private
sector, SADC,
SA regions,
SOEs

DSI to lead;
DMRE, DHET,HySA, private
sector, SOEs,
SADC, SANEDI,
TVET

Figure 4.7: Theory of change for a green and enhanced power sector

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SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

4. SOUTH AFRICAN HYDROGEN-SOCIETY OUTCOMES (CONTINUED)

Table 4.5: Action plan for a green and enhanced power sector

SECTOR: GREEN AND ENHANCED POWER SECTORCHAMPIONSUPPORTING INSTITUTIONS OR
ORGANISATIONS

HOW WILL GESI/JUST TRANSITION AND RDI BE
INCLUDED?

HOW WILL WE MONITOR PROGRESS?

1. National electrification plan/target to be divided into mainand micro-grids

DMRE

Eskom

GESI: Incorporate GESI into the electrification plans•

Number of micro-grids deployed

2. Finalise South African Renewable Energy Masterplan(SAREM)

DMRE with DTICDSIGESI: Participation of women and youth in SAREM•

SAREM completed and approved

3. Align SAREM and Steel Masterplan with HSRM targets

DMRE

DSI, DTICGESI: Targets for women- and youth-led SMMEs•

Number of RE plants deployed in support of GH2 production

4. Update NDCs to align with HSRM with a specific focus on
the power generation sector

DFFE

DSI, Science Councils

Not necessarily•

Updated NDCs

5. Subsidies to telco applications for FC deployment to scale up

National
Treasury
with DCTS

Telcos, DSI•

Number of FCs deployed to support ICT infrastructure•

Subsidies in place

6. Pilot FCs in data centres for proof of concept

DCTS with DSI

RDI: H2 back-up application featuring long-term storage•

Number of data centres powered by FCs

7. Pilot FCs in informal settlements keeping the same standard
as main grid

DMRE with DSIGESI: Targets for women- and youth-led SMMEs involved in
deployments•

Number of FCs deployed in informal settlements

8. Develop a national set of standards on energy within the built
environment to enable use of H2 in buildings

DPWI with DMRE

Eskom, Green Building Council (GBC)

RDI: Centre of Excellence on Legislation and Policy in hydrogen•

Standards developed and adopted

9. Create awareness of hydrogen economy through different
building-related bodies around H2 and HFCT in buildings

DPWI with GBC

DSI, real estate entities

RDI: RE integration in built environment•

Number of buildings powered by FCs (primary or back-up
power)•

Public procurement policy developed and adopted•

Number of public buildings that use FCs (primary and backup)•

Number of critical infrastructure that use FCs (primary andback-up)ACTION2021-2024

GESI: Support for remote education due to COVID-19
RDI: Research into cost effective H2 distribution for telco
applications

RDI: Centre of Excellence on techno-economic analysis

10. Use public procurement to stimulate H2 and fuel cell demandin public building sector

DPWI with DMRESANEDI, private sector

11. Adopt H2 and FCs to power critical infrastructure

DoD with DPWIDSI, private sector

GESI: Consider youth and women in procurement

12. Create a marketing and advocacy plan for H2 use in theelectricity sector (main, micro-grid)

GCIS with DMRE

DSI, DHETGESI: Energy, poverty, air quality, safety, women•Marketing and advocacy plan developed

13. Incorporate and couple H2 production into existing PPADMRE with IPP officeNT

GESI: Consider GESI in procurement•

Number of PPAs incorporating GH2

14. Facilitate the approval of the Solar Research Facility (SRF)
plan for funding

DSI

private sector

GESI: Consider GESI in staffing and training•

Number of facilities established and supported

15. Prepare a position paper to specifically fund H2 use in subsectors (buildings, micro-grids)

National
Treasury
with DMRE,

DSI

RDI: Centre of Excellence on techno-economic analysis•

Position paper completed and recommendations adopted

16. Complete establishment of the SRF

DSI

private sector

RDI: H2 production from solar energy•

SRF up and running

GESI: Targets for women and youth in staff•% women and youth employed in the SRF

17. Connect households to either main or micro-grids using FCs

DMRE,

local municipalities•

Number of grid-connected households, disaggregated by miniand main grid

18. Revise the IRP to include hydrogen gas for generation

DMRE

•

MWh of energy produced from H2 energy

GESI: Consider youth and women in procurement2025-2030

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HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONGESI: Targets for women and youth led SMMEs
GESI: Targets for women and youth led SMMEs

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SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

4. SOUTH AFRICAN HYDROGEN-SOCIETY OUTCOMES (CONTINUED)

4.6 TRANSITION FROM GREY TO
BLUE TO GREEN HYDROGEN
A carbon price and other policies, such as blending mandates for clean fuels
or ammonia could be used to accelerate the phase-out. In the absence ofsuch policies, relying on industry commitments and consumer pressure only
will not meet the net-zero target.

Figure 4.8 gives an indicative global transition of the various forms ofhydrogen as presented in a recent report by the Hydrogen Council.65 The
actual transition and the proportion of the various shades of hydrogen will
be largely driven by market forces. However, the report also notes that thephasing out of grey hydrogen will depend on the regulatory environment.
800
700
600
500

30% of grey hydrogen conver ted to clean in 2030

400
300
200
100
0
2020

2030

Grey

2040

Low-Carbon

2050

Renewable

Figure 4.8: Indicative hydrogen supply by production method in million tonnes of hydrogen per annum
Source: Hydrogen Council 2021
South Africa’s transition from the use of grey to blue to green hydrogenneeds to be done in a manner that is consistent with national priorities while
being agile enough to respond to demand. In the short term, South Africa
will use catalytic projects to stimulate local demand for all forms of hydrogenin order to demonstrate commercial viability and scalability. This will thenbe used to prepare the country to respond to global demand for greenhydrogen and capture a significant share of the projected demand of 530 Mt
by 2050. In this regard, South Africa could target to at least double its current
share of the global demand in green hydrogen by 2050. The use of greenhydrogen in South Africa’s power sector in electricity generation and energy
storage is projected to be 1.4 Mt in green hydrogen by 2050.

65. Hydrogen for Net-Zero, Hydrogen Council Report, November 2021.

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Figure 4.9 gives the theory of change for the transition from grey to blue
to green hydrogen while Table 4.6 gives the proposed action plan aimed at
stimulating the upscaling of production, storage and distribution of hydrogen,which will also inform the transition from grey hydrogen to green hydrogen.

SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

4. SOUTH AFRICAN HYDROGEN-SOCIETY OUTCOMES (CONTINUED)

SAREM

MTSF, NDP,
IRP, IEP
NDC, IRP
2019,
NCCRP,
LEDS, GTS,
AMP, IPAP,
P4C

GH2 production• tonnes of GH2 produced• MW of RE installed forGH2 production

Distributed

Blue and grey H2production• Tonnes of H2
produced (grey, blue)

Centralised

Financial
framework:• Access to finance• Specific H2
financial schemes in
place

DTIC, DSI, DMRE, NT,
DoT, DBSA, IDC, PIC,
Donors/DFIs, financial
institutions, CEF, ISA

Transport
sectors

Manufacturing sector
for H2 products

Power
sectorCentralised

Distributed

GH2
demand only

H2 demand

Cost
competitiveness(LCOE of GH2)

Enabling
infrastructure andpolicy supports H2and disincentivises
CO2- intensivealternatives

Policy:• H2-specific favourable
and integrated policy isset (subsidies for GH2);
fiscal measures are inplace• Renewable energy
surplus is available andgeographically
distributed

DTIC, DFFE, DSI,
DMRE, NT, DoT, SA
Bureau of Standards,
SADC, National
Energy Regulator

Exportmarket(Green, blue, grey) H2
storage and distribution• Tonnes of H2 stored• Tonnes of H2 distributed

H2 supply

Attractive
investment
environment(de-risking H2
investments)

Industry/clusters

Compliance andregulation

Regulatoryenvironment:• H2 regulation,
codes andstandards in place• H2 guaranteeof origin

Innovative
culture (social
acceptance)and skilledworkforce

International
commitments(H2 production
scale-up)

Skills development

R&D and innovation(MEAs, CCMs)

DSI to lead, DMRE,
DHET, HySA, private
sector, SOEs, SADC,SANEDI

National andinternational
partnerships aredeveloped

DTIC, DFFE, DIRCO,
private sector, SADC,
SA regions, SOEs

Raw materials
available:
water, PGMs, etc.

• Raw materials
available for products
manufacturing andelectrolysis• Water availability:
electrolysis vs drinking
water, especially at
local level

DMRE, DTIC, private
sector, CEF

Figure 4.9: Theory of change for hydrogen generation, storage and distribution

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4. SOUTH AFRICAN HYDROGEN-SOCIETY OUTCOMES (CONTINUED)

Table 4.6: Action plan for hydrogen generation, storage and distribution

SOURCE: HYDROGEN GENERATION, STORAGE AND DISTRIBUTION
CHAMPIONSUPPORTING INSTITUTIONS OR
ORGANISATIONS

1. Improvement of grey H2, blue H2 infrastructure deployment
including technology upgrade

Infrastructure SA

Sasol, PetroSA, NCP Chloro-Chem, NERSA, DMRE,
DSI

2. Finalise Green Hydrogen Commercialisation Strategy tosupport the implementation of the HSRM

DTIC

3. Gazette Integrated Infrastructure Project (SIP) on Hydrogen

Infrastructure SA

4. Implement catalytic projects such as Boegoebaai SEZ,
Platinum Valley Initiative (SA’s Hydrogen Valley), CoalCO2-X
Demonstration and SAF project

Infrastructurewith NCEDA

5. Develop a communication plan to promote awareness ofhydrogen use across all sectors

GCIS with DMREACTION

HOW WILL GESI/JUST TRANSITION AND RDI BE
INCLUDED?

HOW WILL WE MONITOR PROGRESS?

GESI: Have targets for the participation of women and youth inmarket deployment plan•

Market deployment plan to be in place

RDI: Research, development and demonstration of MW scale
electrolysers focused on cost reduction of GH2•

Number of MW electrolysers deployed in SA•

Cost of GH2 per kg

GESI: Have targets for the participation of women and youth inGH2 supply chains•

GH2 commercialisation strategy developed

GESI: Have targets for the participation of women and youth in
SIP•

Number of women and youth involved in SIPGESI: Have targets for the participation of women and youth incatalytic projects•

Number of women and youth involved in catalytic projects•

Number of locally developed components integrated in catalytic
projects•

Number of women involved in the Communication Plan•

Number of women and youth trained•

Critical Infrastructure Programme revised•

Number of critical infrastructure programmes deployed•

RDI strategy developed•

Number of women and youth involved in implementing RDI Strategy•

CCU technology piloted•

Skills development roadmap developed•

Number of women and youth trained•

Framework for job preservation through reskilling developed•

International partnerships established•

Number of women and youth participating in international
partnerships•

Partnerships established•

Number of women and youth participating in partnerships•

Just Energy Transition framework finalised•

Overarching body established•

Number of women and youth employed by overarching body2021-2024 Grey, blue, green

6. Revise the Critical Infrastructure Programme Framework to
speed up the deployment of hydrogen-related infrastructure(refuelling stations, pipelines)

DTIC

7. Develop an RDI Strategy to support the implementation of theHydrogen Society Roadmap

DSI

DMRE, DSI, private sector, SOEs

SA

DSI, SANEDI, Sasol,

DSI, DTIC

RDI: Research focused on cost reduction of GH2 and fuel cellcomponents
GESI: Women, youth framework in place including skills
development, social acceptance
GESI: Framework for women, youth participation in deployment
of infrastructure
RDI: Research aimed at improving performance of key componentsof critical infrastructure

private sector, academia

GESI: Participation of women and youth in RDI Strategy
GESI: Women, youth participation in CCU

8. Pilot carbon capture and use (CCU) in Mpumalanga
Priority Area

DSI with DMRE

DFFE, private sector, academia, SOEs, Provincial
Government

9. Develop a skills development roadmap which spans from
TVETs, UoTs and Universities

DHET with DoL

DTIC, DSIGESI: Women, youth participation in skills development

10. Develop a framework for reskilling people and preserving jobs
in sectors affected by the transition to the Hydrogen Economy

DHET

DMRE, DFFE, DTIC, DSIGESI: Women, youth considered for reskilling

11. Establish international partnerships to scale up training required
for the hydrogen economy

DIRCO with DHET

DSI, DTICGESI: Women, youth participation in international partnerships

12. Establish
international
electrolyser research

DSI with DIRCO

universities, Science Councils, private sector

13. Finalise the Just Energy Transition Framework

DMRE

PCCC

14. Establish an overarching body to coordinate relevant players in
the quadruple helix around the hydrogen economy

DSI with DTIC

DMRE

65

partnerships

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

tosupport

RDI: Research aimed at improving performance of CCU
technology

GESI: Consider women, youth in recruitment
RDI: Research aimed at improving performance and cost ofelectrolysers
GESI: Consider GESI in Just Energy Transition
RDI: Research aimed at supporting Just Energy Transition
GESI: Consider women and youth participation in overarching
body

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4. SOUTH AFRICAN HYDROGEN-SOCIETY OUTCOMES (CONTINUED)

Table 4.6: Action plan for hydrogen generation, storage and distribution (continued)

ACTIONCHAMPIONSUPPORTING INSTITUTIONS OR
ORGANISATIONS

HOW WILL GESI/JUST TRANSITION AND RDI BE
INCLUDED?

HOW WILL WE MONITOR PROGRESS?

15. Complete feasibility studies on water resource availability anddesalination to support green H2 production

DWS

Water Research Commission (WRC)

RDI: Centre of Excellence on techno-economic analysis on thecost of GH2 in South Africa•

Feasibility study completed

16. Complete feasibility studies on new H2 corridors and valleys inSouth Africa to support the scale-up of demand

DTIC with DMREGESI: Consider GESI in hydrogen valleys and corridors•

Feasibility study completed•

Number of hydrogen valleys and corridors identified

17. Revise the NDCs taking into account GH2 to support a netzero carbon economy especially in hard-to-abate sectors

DFFE with DTICGESI: Consider GESI in revising the NDCs•

NDCs revised•

Number of proposals approved•

Pilot demonstration completed•

Grey H2 phase-out plan developed

18. Call for proposals on improving the cost and efficiency ofhydrogen solutions

GESI: Consider GESI in reviewing of submitted proposals
DSI with SANEDI

RDI: Research on improving cost and efficiency of hydrogentechnologies

2025-2030 Grey, blue, green
19. Pilot CCU on a national scale

DSI with DMRE

20. Develop a grey H2 phase-out plan if green H2 reaches parity
with grey H2

DMRE

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DPE, SOEs
private sector

GESI: Consider participation of women and youth in technology
demonstration
RDI: Research on supporting technology demonstration
GESI: Consider GESI in phase-out plan
RDI: Research on reducing the cost of GH2

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5.	CATALYTIC PROJECTS: INDUSTRIAL CLUSTERS AND
DEMONSTRATION ZONES
To kick-start the development of a hydrogen society in South Africa, a number of catalytic projects have been identified. Four of these are discussed
here: the Hydrogen Valley or Platinum Valley Initiative, CoalCO2-X project, Boegoebaai SEZ and the Sustainable Aviation Fuels Project.

5.1 THE PLATINUM VALLEY INITIATIVE – SOUTH AFRICA’S HYDROGEN VALLEY
So-called “hydrogen valleys” have been successfully implemented in othercountries to promote the scale up of clean, emerging technologies and reduce
emissions.66 Figure 5.1 illustrates the broader concept of a Hydrogen Valley

and the associated benefits that it offers to kick-starting the development ofhydrogen projects.

DEVELOPING A HYDROGEN VALLEY THROUGH A HUB-BASED APPROACH: BENEFITSFUTURE-PROOFING INVESTMENTS
In a hub-based analysis, a techno-economic
assessment of the viability of the community is
conducted, taking into account future evolutionsof technology costs and regulations as well as theactual demand from players already existing in theValley. The techno-economic assessment acts as abusiness viability assessment to ensure thathydrogen projects are viable in the hub.

DE-RISKING INVESTMENTS
The hub-based approach could help in de-risking
investments by identifying a diversified set ofoff-takers in the hub across many sectors.
De-risking could also be enabled through sharedinfrastructure investments between off-takers andproducers.

ENSURING LONG-TERM COMMITMENTACROSS STAKEHOLDERS

Working at a hub-level allows for dialogue withpossible project sponsors and off-takers,
establishing a shared vision for the community
with hub members. A long-term commitment
also allows for investments in skills development
within the community and sets a foundation fordeveloping local supply chains and unlocking
enabling policy frameworks.

BUILDING ON EXISTINGFUNDING OPPORTUNITIES

Several opportunities exist for hydrogendevelopment in South Africa, especially frominternational donors. Organising communities into
hubs with a clear business case for thedevelopment of hydrogen projects, creates aframework for applying for project funding andstrengthens applications through proven viable
projects.

Figure 5.1: The Hydrogen Valley concept and benefits

66. ‘First details on South Africa’s new platinum industrial zone – stretching from Limpopo to KZN’, Businesstech, 19 October 2020, businesstech.co.za/news/energy/441802/first-details-on-south-africas-newplatinum-industrial-zone-stretching-from-limpopo-to-kzn/.

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5. CATALYTIC PROJECTS: INDUSTRIAL CLUSTERS AND DEMONSTRATION ZONES (CONTINUED)

The development of such a valley in South Africa presents a significant
opportunity for sustainable economic and social development, including job
creation and GHG emissions reductions.
To realise this intervention by 2030, South Africa’s platinum production will be
leveraged to kick-start the hydrogen economy. This could lead to cost savings
through shared infrastructure investments, improving the cost competitivenessof hydrogen production through economies of scale, enabling a rapid rampup of production within a given territory, socioeconomic development, andthe creation of an incubator for new hydrogen pilot projects.67
The DSI has partnered with SANEDI, Anglo-American Platinum, Bambili
Energy and ENGIE on the Hydrogen Valley Feasibility Study focused on
developing catalytic green hydrogen hubs. These hubs will form South Africa’shydrogen valley, through the Platinum Valley Initiative (PVI). These hubs have

Figure 5.2(a): Geographical representation of the Platinum Valley
Source: Hydrogen Valley Report, October 2021

been identified based on their potential for a high concentration of futurehydrogen demand, their capacity to produce hydrogen (through access tosun, wind and water infrastructure), and their potential contribution to a justtransition – an economic development plan that brings positive social impact,
particularly to more vulnerable communities.68 The hubs (Figures 5.2a and5.2b) – in Johannesburg, Durban/Richards Bay and Mogalakwena/Limpopo –will host 16 pilot projects and contribute to launching the hydrogen economy
in the hydrogen valley.
The PVI will establish a “Hydrogen Corridor” from Limpopo, throughJohannesburg to Durban as a strategic intervention that will assist in opening
the status quo (heavy-duty diesel trucks) to a technological niche (heavy-duty
fuel-cell trucks), while supporting the upscaling of hydrogen consumption in
the transport sector.

Figure 5.2(b): Indicative hydrogen demand sectors in the hubs

67. Department of Science and Innovation, South Africa Hydrogen Valley Final Report, October 2021. https://www.dst.gov.za/images/2021/Hydrogen_Valley_Feasibility_Study_Report_Final_Version.pdf.
68. Ibid.

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5. CATALYTIC PROJECTS: INDUSTRIAL CLUSTERS AND DEMONSTRATION ZONES (CONTINUED)

As part of the first phase of the PVI implementation, the DSI commissioned a
study aimed at driving the planning, designing, construction and commissioningof projects related to the development of hydrogen-related technologies in
the PVI.69•

The study identified three key areas, spanning the industrial, mobility andbuilding sector, forming the backbone of the PVI as follows:

Promising pilot projects in the industrial (ammonia, chemicals), mobility(mining trucks, buses) and buildings (fuel-cell power) sectors have been
identified as key next steps to kick-start the implementation of the PVI.70 In
the industrial sector, many pilot projects earmarked for the PVI are:

•

•

•

Johannesburg: The industrial and building hub will drive the switchfrom grey hydrogen to green hydrogen. Green hydrogen will substitutegrey hydrogen in the production of ethylene and fuel, act as catalyst
during iron and steel production, and be the fuel for diamond-mining
trucks.There is also great potential for it to be used in stationary powerin buildings, and in public transport.
Durban/Richards Bay: The mobility sector will drive the switch fromgrey hydrogen to green hydrogen as the fuel used by heavy- andmedium-duty trucks on the N3 freight corridor. Green hydrogen will
be used as fuel for port activities, including handling equipment andelectricity, oil refining, and medium-grade heating.
Mogalakwena/Limpopo: The mining sector will switch to greenhydrogen for mining-truck fuel.

•

Sasol has committed to developing ethylene and ammonia from greenhydrogen.

•Green steel is a national priority, and there could be an opportunity topilot green steel production with Arcelor Mittal at one of its sites near
Johannesburg.

•

The government is interested in reducing emissions in the paper andpulp sector, presenting an opportunity for Durban-based paper mills toswitch from natural gas fuel to hydrogen.

•

The mobility sector has a number of potential opportunities, including
deployment of mining trucks and heavy-duty trucks along the N3
corridor. There are mobility applications using fuel cells in the Durban
and Richards Bay port environment (such as in forklifts), in public
buses in metropoles and in berthing activities in the port of Durban.
Marine bunkering for ammonia may be deployed in the longer term;hydrogen in the maritime sector is a strategic priority, though not yet
cost competitive. There is also potential for a fuel-cell train between
Durban and Richards Bay, once the technology is further developed.

•

In the building sector, there are plans to install fuel cells for power in the
Limpopo Science and Technology Park, as well as in the Anglo American
corporate office buildings in Rustenburg. Other pilot opportunities
might be identified in public office buildings in metropoles, and inbuildings at OR Tambo and King Shaka airports.

•

Finally, data centres, corporate headquarters and private office buildings
see rising interest in hydrogen fuel cells for stationary power, withpotential for rapidly growing demand in the near future.

The implementation of the PVI project is expected to have the following
significant positive impacts for South Africa:•

By 2030, the PVI is expected to lead to cost savings through sharedinfrastructure investment, improve the cost competitiveness ofhydrogen production through economies of scale and be used as an
incubator for new pilot projects.

•

The hydrogen demand in these hubs could increase by 80%, to 185 000
tonnes of hydrogen by 2030.

•

The levelised cost of green hydrogen is expected to be approximately
USD4 per kg H2 across hubs. While this is still more expensive thangrey hydrogen, trends have shown that, with the continued adoption ofgreen hydrogen, this cost gap is likely to decrease.

The PVI has a strong potential to contribute to a just transition,and could potentially add USD3.9-8.8 billion to South Africa’s GDP(including indirect contributions) by 2050, while also creating 14 000 to
30 000 jobs per year.

69. Ibid.
70. Ibid.

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5. CATALYTIC PROJECTS: INDUSTRIAL CLUSTERS AND DEMONSTRATION ZONES (CONTINUED)

5.2 COALCO2-X PROJECTSouth Africa is the world’s 14th largest emitter of GHGs, particularly CO2emissions due to its heavy reliance on coal. South Africa’s commitment
to the PA on climate change requires collaboration between governmentand business to achieve its stated carbon reduction goals. In this regard, the
CoalCO2-X Project (Figure 5-3) aims to use green hydrogen and pollutants(CO2, SOx, NOx, etc.) contained in the flue gas from coal-fired boilers tomake value-added products that can support the transition to a decarbonised
energy system and assist the country to meet its emission reduction goals
while also ensuring a just energy transition. In addition, such an initiative
would provide a platform to scale up the domestic demand for hydrogenand create capabilities for the export market. To date, the DSI has provided
ZAR50 million to kick-start the CoalCO2-X RDI Project.

36kg/h Ammonia for Cat-NOx
Reactor and CO2 Reactor
C

G
GREEN AMMONIA PRODUCTION

B

A
Coal,
DiscardCoal,
Biomass

COAL-FIRED
300 Nm3/h
POWER AND HEAT Flue Gas
GENERATION

ON-SITE COMMODITIES

Demin
Water

Water
Electrolysis

Air
Separation

Ammonia
Synthesis

CO2 CONVERSION TO FERTILISER SALTS
Quench –Radial Flow
ScrubberSulfacid
ReactorConversion of
SO2, into
Sulphuric Acid
(H2SO4)

Cat-NOx
ReactorConversion of
NO2 into
Nitrogen (N2)Green
AmmoniaPV

CO2 Reactor
Conversion of
CO2 into
Fertiliser Salt
(NH4HCO3)

Up to 99% CO2
Free Flue Gas

Fertiliser

Coal-Fired Boiler

Particulate Matter andHeavy Metals

D
FERTILISER
PRODUCTION

E

Diesel
DIESEL PRODUCTION
CO2

Fertiliser Manufacturing– Blending Process
F
GREEN HYDROGEN
PRODUCTION
Demin
Water

Figure 5.3: Flue gas conversion into value-added green products

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PV
Water
Electrolysis
(H2)

H2

CO2 Reactor
Conversion of
CO2 into 0 ppm
Sulphur Diesel

Green
Hydrogen

SulphuricAcidSECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

5. CATALYTIC PROJECTS: INDUSTRIAL CLUSTERS AND DEMONSTRATION ZONES (CONTINUED)TODAYEXISTING ASSETS (2021)

MODULAR RETROFIT OF
EXISTING ASSETS TO
ACHIEVE ENVIRONMENTALCOMPLIANCE (2021-2050)

INTEGRATED DESIGN OF
NEW ASSETS BEYONDENVIRONMENTALCOMPLIANCE (2030-FUTURE)

Electricity/Steam/
Industrial Process

Water
NH3

Water

Polluted
Air
Boileror
FurnaceTOMORROWElectricity/Steam/
Industrial Process

Electricity/Steam/
Industrial

Coal

TRANSITION

FilterBoileror
Furnace

FilterConvertClean
SO2
Convert Air
CaptureCaptureCO
2
PM
NOx
CaptureSulphuricHg
Acid Fertiliser

Commercially Available• Assets face systemic risks• Asset value corrosion• Unforeseeable change• Commercial uncertainty• Ever dynamic policy framework• Struggling global market• Request exemptions

GREY HYDROGENBLUE HYDROGEN

NH3
Capture Hg
CaptureandPM
ConvertBoiler Filter
SO2,
or
Furnace
NOX and
CO2

Clean
Air

Chemical
Products
Fertiliser

Fertiliser• Preservation of asset value• Conservation of employment• Transition period• Diversification of employment opportunities• Time management of assets under sustainable philosophy• Socioeconomic adjustment to new business practiceRenewable
EnergySourcesH2• Adoption of new technology• Integration of technology options• Risk adjustable change process• Financial acceptable options• Tested corrective measures• New jobs and opportunities• Sustainable options

GREEN HYDROGEN

Figure 5.4: The CoalCO2-X Project and its role in the Just Transition
Figure 5.4 shows how innovative carbon capture and utilisation technologies
combined with green hydrogen and green ammonia can be an integral partof South Africa’s just energy transition.
In terms of addressing the needs at societal, economic and individual levels,
the CoalCO2-X programme has been structured to consider the beneficial
impact for society.

Acting as a technology enabler, the CoalCO2-X programme is leveraging
outputs from higher education and research institutions in South Africa
and Europe, including research papers and patents, technology, qualified
people and expertise, see Figure 5.5. The programme is positioned to assist
government policy and strategy by supplying technologies that will enable orenhance the delivery of government services to individuals and businesses.

The programme incorporates and leverages the advantages of the triple helix
linkages through which the needs-based CoalCO2-X technology innovation
will deliver value-added impact.

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5. CATALYTIC PROJECTS: INDUSTRIAL CLUSTERS AND DEMONSTRATION ZONES (CONTINUED)

BRIDGING THE INNOVATION CHASM
The CoalCO2-X Programme is structured to ensure the sustainable transition of the carbon capture and utilisation technology innovation from RDI concept todemonstration and scale-up to industrial application, by bridging the triple chasms that prevent innovation reaching full commercialisation.

GOVERNMENTECONOMICDEVELOPMENT

GOVERNMENT
AND ACADEMICRDI CoC* / CoE*INNOVATINGRESEARCH ANDTECHNOLOGYFIRMSLARGE-SCALE
INDUSTRIAL
EMITTERS OF CO2
AND FLUE GAS
MULTI-POLLUTANTSCOMMERCIALUPTAKE

PolicyHub

RDI Hub

Tech. IP
Hub

Industry
Hub

Commerce
Hub

DSI

Others

NWU
HySA

UCT

UWC

OthersC* Change

PetroSA

Fraunhofer

CPPE

Eskom
PPC

OthersEnviroServe

Omnia

OthersCoalCO2-X Portfolio and Programme Management (DSI Energy Secretariat)

Project Management Institute (PMI) and ISO 215000 Standards

CoalCO2-X Technology Integrator and Systems Engineering (EPCM Pty Ltd)ISO/IEC 15288 Systems Engineering Standard

THE TRIPLE CHASM MODELThe Triple Chasm Model provides asustainable approach to overcome theeconomic, technological, andcommercial hurdles that prevent thesuccessful commercialisation of
innovation

OthersCHASM 1:CHASM 2:CHASM 3:

• Idea / Innovation• Laboratory• University CoC / CoE• Researching Grants and Funding• Proof of Concept• Lab Scale Model• Research Grants and Funding• Demonstration• Pilot Site
• VC and Seed Funding

Towards a Carbon Capture and Utilisation Economy

Figure 5.5: Schematic diagram showing the CoalCO2-X programme Research, Development and Innovation (RDI) hubs
Figure 5.5 illustrates how RDI CoalCO2-X programme hubs give access to a
network of expertise to help and support the expansion of the programmethrough gaining access to a trusted network of investors, mentors, funders,technical experts and research partners with the know-how needed to help
build a better ecosystem. Each hub is expected to have a niche area chair or
research-focused areas, and these hubs will connect to each other throughcollaboration.

74

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONThe short,- medium- and long-term opportunities for the programme areindicated in Figure 5.6. The near-term achievable commodities are sulphuricacid and fertiliser production for 2020 to 2024 while the longer-term
opportunities are to export these commodities in the subsequent five years
from 2024.

SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

5. CATALYTIC PROJECTS: INDUSTRIAL CLUSTERS AND DEMONSTRATION ZONES (CONTINUED)

NEAR TERM – 2020-2024

LONG TERM – 2024-2030

Carbon Capture and Utilisation Economy RDI
PILOT

DEMONSTRATION AT INDUSTRIAL SCALECOMMERCIALISE AND ROLL-OUT

Abatement of Flue Gas Emissions

Abatement of Industrial Incinerator
Flue Gas Emissions

Abatement of Coal-Fired Power
Station Emissions

Sulphuric Acid Production

Import Substitution

Exports to Region

Fertiliser Production

Agriculture Scale-Up Production

Exports of Region

Green Hydrogen and Green Ammonia

Commericial Green Hydrogen andGreen Ammonia

Diesel Production

Supporting Agriculture

Post-COVID-19 Industrialisation and Infrastructure Development

Commercialise Locally Developed IP

Re-Purposed Old / Retiring Eskom Power Stations
Post-COVID-19 Agriculture – Fertiliser Production

Figure 5.6: Schematic diagram showing near- and long-term opportunities of the CoalCO2-X programme

5.3 BOEGOEBAAI: A GLOBAL HUB
FOR FUTURE FUEL

1.

Electrolyser park: A range of anchor investors with appropriate
electrolyser technologies will bid for inclusion, and the successful
bidder will construct facilities at the port.

With a global move towards lowering carbon emissions, hydrogen, which only
emits water vapour at the point of use, is often considered the green “fuel ofthe future”. However, large-scale use of hydrogen has been hampered by theneed to burn fossil fuels in its production.

2.

Desalination plant: The production of green hydrogen requires
significant amounts of water. Given the water-scarce nature of theNorthern Cape, this will most likely require the desalination of sea
water.

Lowering the carbon footprint of the hydrogen production process, andestablishing a fully developed green-hydrogen economy in South Africa, will
result in significant benefits, from national GHG emissions abatement to arange of socioeconomic benefits.

3.

Green ammonia production plant: This would house theadditional infrastructure and facilities required to produce green
ammonia as a renewable fuel, linked to the green hydrogenproduction process.

Working towards this goal, the South African government has designatedBoegoebaai, a port on the Northern Cape coast, as a Strategic Integrated
Project (SIP) in the South African NDP. Sasol has committed to leading thisproject, with the aim of ascertaining whether a global export hub for greenhydrogen and ammonia is feasible at Boegoebaai.71

4.

Storage facility: A bespoke liquid-storage facility for both greenhydrogen and green ammonia, will offer tailored loading capacity forexport vessels carrying the liquid volumes, and fuelling capability for
vessels transitioning to green ammonia as a fuel.

5.

Solar, wind and battery park: This will upscale the generationof renewables (specifically wind and solar), ensuring 100% RE forthe green hydrogen and green ammonia produced. Potential also
exists to produce manganese-based precursor materials for the
production of lithium-ion batteries, leveraging on the manganesemines located in the Northern Cape.

6.

The feasibility study should take 24 months, from June 2021. However, as
this study unfolds, it is becoming clearer that the overall business case needs
strengthening through further project preparation.

Supplier park for key common components: Suppliers toanchor investors can be accommodated in a dedicated, efficientconfiguration for flowthrough purposes.

7.

As the lead project integrator, Sasol will bring together strategic partners
along the value chain, along with other roleplayers, to drive industrialisationof the Northern Cape and South Africa as a whole. These include potential
customers, funders, investors, technology suppliers and South African greenenergy providers.73 Sasol’s deep expertise in FT technology will be deployedat the facility.The FT process synthesises carbon monoxide and hydrogen into
gas, which is converted to longer-chain hydrocarbons to produce green fuels.

Gigafactory: This will be a dedicated, advanced manufacturingsite to ramp up production of electrolysers, leveraging on locally
produced intellectual property and expertise.

Sasol has partnered with both national and local government to finalise thelocation and development of the Boegoebaai facility, signing a memorandumof agreement with the Gauteng Provincial Government and the Northern
Cape Economic Development, Trade and Promotion Agency.

Boegoebaai is located in the Namakwa SEZ and already has an establishedhydrogen production plant. The existing plant, the project’s strategic locationand its classification as an SIP are key elements of its potential as a site for the
project. The development will occupy 60 000 hectares of well-irradiated land
adjacent to the SEZ plant. Enhancements entail constructing green hydrogenand green ammonia production sites. The facility would also support a
30 GW solar and wind farm – six times South Africa’s current installed RE
capacity – and 5 GW of electrolysis.72

The structure will consist of seven key facilities:74

As of June 2021, joint funding for the feasibility study had been secured from
Sasol and the Industrial Development Corporation (IDC), with the hope that
more private- and public-sector investment in the future will be leveraged.75

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

75

SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

5. CATALYTIC PROJECTS: INDUSTRIAL CLUSTERS AND DEMONSTRATION ZONES (CONTINUED)

The feasibility study is is expected to be completed in 2022. In the meantime,
the Northern Cape is considering the following commitments to position
itself as a production and distribution hub servicing the export market:76•

There are significant socioeconomic benefits to a project of this magnitude.
In addition to infrastructure investment and skills development, Boegoebaai
has the potential to provide a significant number of long-term, sustainable
jobs: an estimated 6 000 direct jobs will be created, as well as further indirect
employment across the ecosystem.77

Mobilising and supporting investment to ensure 10 GW of electrolyser
capacity is under construction at the Boegoebaai SEZ by 2025-2026,
and fully deployed by 2030;•

Packaging 240 000 hectares of well-irradiated, well-positioned,
community-owned land to be deployed for RE use to support theelectrolyser power supply;•

Consolidating the supply generated across the Northern Cape solar
belt for export via a network anchored at the Boegoebaai SEZ;•

Partnering with the private sector to build a green hydrogen pipeline
system, connecting projects across the Northern Cape solar belt into
Boegoebaai SEZ by 2030; and•Partnering with Transnet and the private sector to deploy dedicated,
specialist rail infrastructure linking green hydrogen producers to both
Boegoebaai and to the wider national port system by 2030.

The development also has the potential to create up to 400 000 tonnes ofgreen hydrogen each year. It will require 9 GW of RE to do so – about 20%
of South Africa’s current installed capacity. However, the installation of the
30 GW wind farm should help the project reach this target.78
One of the most important outcomes will be to allow South Africa to produce
clean hydrogen for mass export, without the need to burn unsustainablehydrocarbons.This would position the country as a global leader in the greenhydrogen economy, with immense opportunities to benefit financially andenvironmentally. The project would also contribute to a “just transition” forthe country.79

Figure 5.7: Illustrates the synergies between the Boegoebaai project and the
CoalCo2-X project.

SOUTH AFRICA

Value Creation:• Honour COP21commitment• PM, SOx, NOx abatement• Comply with Air Quality Laws
• Healthy citizen environment• Avoid stranded coal assets• Create domestic market forgreen hydrogen and ammonia• Economic linkage Mpumalanga
and Northern Cape
• Retain jobs in Mpumalanga

LIMPOPO

National Capital

Polokwane

Provincial Capital

Fertilliser
production

Existing Mpumalanga /Richards Bay Coal
Railway LineGAUTENG
Pretoria

Mahikeng

Johannesberg

NORTH WEST

Mbombela

MPUMULANGAFREE STATE
Greenhydrogenproduction
Greenammonia
production
Sea water
desalination

Sulphuric acidproduction

Kimberley

RE

Bloemfontein

LESOTHO
Pietermaritzburg

NORTHERN CAPEKWAZULU-NATAL

EXPORT
RSA flue gas conversion
and commodity production
plants using green hydrogenand ammonia

EASTERN CAPEEXPORT

Bisho
Cape Town

GreenammoniaGreenhydrogen

NH3

H2

Flue gas
conversion

WESTERN CAPE

CO2

Methanol
synthesis

Fertiliser salt

*Use 25% of green hydrogen production for the production of green ammonia
for Priority Area Multipollutant Carbon Capture and Conversion (CCU)

Coal anddiscard coal

Coal-fired
power plant

Sulphuric acid

Figure 5.7: Synergies between the Boegoebaai and CoalCO2-X programmes

71.
72.
73.
74.
75.
76.
77.
78.
79.

‘Sasol takes lead role in feasibility study for Boegoebaai green hydrogen project’, Engineering News, 6 October 2021, engineeringnews.co.za.
Presidency presentation to Champions: Investment & infrastructure office/infrastructure green hydrogen (H2) South Africa.
Ibid.
Ibid.
‘Sasol announces lead role in feasibility study for the Boegoebaai green hydrogen project’, Sasol, 6 October 2021, sasol.com/media-centre/media-releases/sasol-announces-lead-role-feasibility-study-boegoebaaigreen-hydrogen.
Ibid.
Ibid.
‘South Africa’s Sasol firm plans for large hydrogen plant’, Construction Review Online, 8 October 2021. constructionreviewonline.com/news/south-africas-sasol-firm-plans-for-large-hydrogen-plant/;‘Sasol looking at massive Green Hydrogen project in South Africa – creating 6 000 new jobs’, Businesstech, 7 October 2021. businesstech.co.za/news/energy/527194/sasol-looking-at-massive-green-hydrogenproject-in-south-africa-creating-6000-new-jobs/.
Ed Reed, ‘Sasol signs up green hydrogen study in northwest’, Energy Voice, 6 October 2021. energyvoice.com/renewables-energy-transition/hydrogen/africa-hydrogen/354588/sasol-study-hydrogen-boegoebaai/;
See the Just Transition Centre, ituc-csi.org/just-transition-centre.

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5. CATALYTIC PROJECTS: INDUSTRIAL CLUSTERS AND DEMONSTRATION ZONES (CONTINUED)

5.4 SUSTAINABLE AVIATION FUELSPROJECT
Globally, aviation is viewed as one of the most challenging areas in which to
reduce GHG emissions.80 In South Africa, the implementation of SAF, lowcarbon alternatives to conventional aviation fuels, is key to decarbonising
the sector.
Potential feedstock for SAF production includes biomass crops and wastes,
residues and end-of-life products. Benefits of SAF include GHG emission
reductions, improved local air quality, improved fuel efficiency, increased
energy security, reduction in exposure to the volatility of jet-fuel supply
and price, recovery of value from wastes (where used) and socioeconomic
development through new investments and job creation. The latter is realised
particularly in rural areas, where biomass is farmed for feedstock.81

is possible to use a locally produced feedstock to manufacture bio-jet fuel forcommercial aviation. While these flights are an excellent example of both theperformance and potential of SAF, until this technology can be incorporated
into an airline’s “business as usual” plans, the potential for CO2 reductions
from SAF will not be realised.
A study conducted by the International Air Transport Association, showedthat a 4.5% SAF penetration into South Africa’s current fuel market willcontribute to energy security and socioeconomic development, and drive
policy implementation. This project could create 55 000 jobs in rural
farming, and contribute to economic growth that will see ZAR2 billion(USD180 million) per annum added to the GDP.85

However, while the benefits of SAF have been proven, three major challenges
to its implementation and usage remain:

Developing a domestic SAF industry also presents South Africa with anopportunity to realise at least five strategic goals:•

The production of feedstock needs to be upscaled to reach the levels
required for production of SAF;••

No policy framework has been implemented. Policy regulations
should elevate aviation biofuels as a priority, as is happening in theautomotive sector; andProactive preparation for the international aviation emission mitigation
framework under the Carbon Offset Reduction Scheme forInternational Aviation, which becomes mandatory from 2027;•

Allowing SAF to become a mitigation option available to domestic
airlines under South Africa’s Carbon Tax Bill;•SAF is still seen as an expensive niche product. This will only change
if demand is stimulated, allowing the fuel to become more affordable
for airlines.82•

Safeguarding South Africa’s global connectivity in an increasingly carbonconstrained world;•

Enabling continued growth of the travel and tourism sector and its
contribution to economic development by giving the country an edge
over other aviation hubs; and•Leveraging the country’s comparative advantages to become acompetitive SAF producer – an industrialisation opportunity.

To help overcome these challenges, on 14 April 2021, the South African
government announced a feasibility study into the upscaling of SAF, utilising
Sasol’s world-leading FT technology.83 Sasol has partnered with Linde
PLC, ENERTRAG AG and Navitas Holdings (Pty) Ltd to form the LEN
Consortium, with each company leveraging their strengths to rapidly increase
the production of SAF. The consortium aims to bid for the production of
SAF under Germany’s H2Global platform, using a double-auction mechanism.
Through licensing and operations, Sasol and the newly formed consortium
are exploring SAF production at the Secunda Synfuels plant in Mpumalanga.
The feasibility study is likely to determine the availability of biomass forfeedstock, its cultivation and integration into Secunda’s operation, andarrangements to meet the final H2Global mandatory requirements.84 This
study also aims to present policymakers with strategic opportunities todecarbonise the aviation sector, and to enable the travel and tourism sectors
to meet the changing profile of international, and increasingly domestic,
travellers – all while seizing the industrialisation opportunity in this emerging
green sector.
The LEN Consortium hopes to lower production cost by leveraging Sasol’s
existing facilities, deep technical knowledge of the FT process, and downstream
processing capabilities. The FT process synthesises carbon monoxide andhydrogen into gas, which is converted to longer-chain hydrocarbons for the
production of SAF. An important requirement for SAF production is Sasol’s
proprietary technology, the Power to Liquid (PTL) process. PTL uses the
newly synthesised, sustainable carbon feedstock and the production of greenhydrogen through electrolysis.
While SAF has been used before and was found to be as efficient an energy
source as conventional aviation fuel for commercial flights, its deployment waslimited to demonstration or sponsored commercial flights due to the cost.

In the LEN Consortium, each company will leverage their strengths to rapidly
increase the production of feedstock for SAF:•

Linde PLC will provide access to electrolysis technology via theirpartnership with ITM to produce the green hydrogen needed for SAF;•

ENERTRAG AG, a German RE company with a strong presence inSouth Africa, owns close to 1 GW generation capacity and operates
more than 6 GW of renewable assets – allowing for the ramp-up ofcarbon- biomass feedstock needed for SAF production; and•Navitas Holdings (Pty) Ltd is a South African development, construction
and investment company with a strong focus on solar photovoltaic
technology and sectors related to the just energy transition,

With the feasibility study underway, next steps and outcomes from thestudy will only become clear towards the end of 2021. However, Sasol andthe LEN Consortium are jointly engaging with the German government
to inform the H2Global platform of their intention to bid via the doubleauction mechanism. The H2Global carbon auction rounds are expected tolaunch towards the end of 2021, with the conclusion of the feasibility study.
Once SAF production at the Secunda Synfuels plant has been determined as
feasible, the obvious next step is engagement between policymakers and thecommercial aviation industry. Policy implementation could help realise SAF
as an inexpensive, viable product to encourage demand – enabling SAF to
become affordable for airlines.86

South African Airways and its subsidiary, Mango, made history in 2016 as thefirst two airlines in Africa to operate commercial flights powered by SAF,
produced from a nicotine-free tobacco plant. The trial demonstrated that it

80.
81.
82.
83.
84.
85.
86.

‘Sasol to explore potential of cleaner aviation fuels with world class partners’, Sasol, April 2021. sasol.com/media-centre/media-releases/sasol-explore-potential-cleaner-aviation-fuels-world-class-partners.
‘WP4 Policy brief: Policy support options for promoting Sustainable Aviation Fuels (SAF) in South Africa’, WastetoWing, February 2020. dtnac4dfluyw8.cloudfront.net/downloads/200228_w2w_wp4_saf_policy_brief_final.pdf.
IATA Sustainable Aviation Fuel Roadmap, IATA, 2015, iata.org/contentassets/d13875e9ed784f75bac90f000760e998/safr-1-2015.pdf.
‘South Africa’s Sasol forms consortium to produce sustainable aviation fuel’, Reuters, April 14 2021.
reuters.com/world/africa/south-africas-sasol-forms-consortium-produce-sustainable-aviation-fuel-2021-04-14/.
‘Sasol to explore potential of cleaner aviation fuels,’ 2021. https://www.sasol.com/media-centre/media-releases/sasol-explore-potential-cleaner-aviation-fuels-world-class-partners.
IATA Sustainable Aviation Fuel Roadmap, 2015. iata.org/contentassets/d13875e9ed784f75bac90f000760e998/safr-1-2015.pdf.
Ibid.

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DEPARTMENT OF SCIENCE AND INNOVATION

77

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DEPARTMENT OF SCIENCE AND INNOVATIONSECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

6.	RESEARCH, DEVELOPMENT AND INNOVATION: THE KEY TO
GROWTH OF THE HYDROGEN SOCIETY

A student at HySA Catalysis-University of Cape Town, using some analyticalequipment to test membrane electrode assemblies (MEAs)

by both government and the private sector. The increase in investment andpublications in hydrogen production technology is testimony to its potential
impact on the overall cost competitiveness of hydrogen technology. Once thishas been realised, it is expected that there will be a shift towards the storage
and distribution as well as the utilisation technologies to further optimise
costs along the hydrogen value chain.

According to a discussion paper launched by the Mission Innovation and
the Clean Hydrogen Mission87 during COP26 in Glasgow, there has beena significant increase in hydrogen-related publications in the period 20102020 (Figure 6.1) as well as patent filing trends over the period 2010-2019(Figure 6.2). Growth has been particularly rapid in hydrogen production,
followed closely by publications on utilisation. Patent filing exhibits a relatively
even distribution across the three areas.The increase in publications and patentfiling is attributed to the increase in investments in hydrogen technologies

10 0009 000

Number of publications

8 000

+229%

7 500
6 000

+101%

5 000
4 000
3 000

+83%

2 000
1 000
0
Production

Storage and Distribution

2010

2015

Utilisation

2020

Figure 6.1: Global hydrogen publications output by supply chain area
Source: Mission Innovation Discussion Paper, November 2021

87. Mission Innovation Discussion Paper launched at COP26, November 2021.

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

79

SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

6. RESEARCH, DEVELOPMENT AND INNOVATION: THE KEY TO GROWTH OF THE HYDROGEN SOCIETY (CONTINUED)

4 500
4 000

+123%
+81%

Number of patents

3 500
+108%

3 000
2 500
2 000
1 500
1 000
500
0
Production

Storage and Distribution

2010

Utilisation

2019

2015

Figure 6.2: Global hydrogen technology patent filing over time
Source: Mission Innovation Discussion Paper, November 2021
The HSRM will support South Africa’s vision of moving towards a just andinclusive net-zero carbon economy by 2050, which will require the country
to embark on a just energy transition. Government has an important roleto play in supporting the transition towards a low-carbon economy driven
by innovation. Hence there is a need for scale, investment and collaboration
as well as coordination of RDI efforts across industry, science councils andacademia. To support the development of a sustainable hydrogen society inSouth Africa, it will be critical to build on the RDI achievements and technicalexpertise developed through the HySA Programme. In this regard, Cabinet
on 14 September 2021 approved the continued support for the programme
for an additional 10 years, beyond the initial 15-year period which ends on
31 March 2023. This will ensure a continuous pipeline of RDI outputs that
contribute to the following tenets of the HSRM:•

The necessary human capital to conduct relevant hydrogen RDI;•

The creation of new knowledge, focused on improved material
performance and cost reduction; and•The physical infrastructure to optimally produce, distribute and utilise
hydrogen to benefit South African communities and the environment.

Independent reviews conducted after every five years of implementationof the HySA Programme have validated the programme’s contribution increating local capabilities through good technical and knowledge-generation
outputs, publications, students and patents. In some cases, international
benchmark performance levels had been achieved, which bodes well for thecommercialisation of technologies that are traditionally dominated by global
value chains.
The development of the HSRM, as recommended by the 2019 independent
review, overlaps with phase 3 of implementation of the HySA Programme,
which focuses on commercialising locally developed technologies, contributing
to international innovation and competing successfully on the world marketof the catalysis value chain in hydrogen and fuel cells. The review highlighted
the importance of establishing an overarching country plan or roadmap for
HFCT to support the RDI and commercial efforts of the HySA Programme.
Accordingly, the DSI initiated the development of the HSRM.

80

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DEPARTMENT OF SCIENCE AND INNOVATION

The implementation of the HSRM can therefore leverage the technology
portfolio of the HySA Programme, and foster engagements with relevant
industry players for improved mobilisation of private- and public-sector
partnerships that will:•

Expand the RDI community beyond the universities and science
councils;•

Increase the delivery of products, incorporating HySA IP to pilot
markets;•

Assist in funding further development and commercialisation of
RDI outputs; and•Increase participation of entrepreneurs, SMMEs and global OEMs
within the HySA Programme to facilitate the deployment of locallydeveloped IP.

The following RDI areas are considered critical to the implementation of
the HSRM:•

Technologies focused on cost effective hydrogen production, storage anddistribution. This includes catalyst-coated membrane technology, stack
technology for water electrolysis, electrochemical hydrogen compression,liquid organic-hydrogen carrier storage, and Power-to-X;•

Fuel-cell stack and related catalysts and MEAs focused on both themobility and stationary applications; and•Cross-cutting research that supports the creation of an enabling
environment will be critical especially in the short term. This would
include modelling (techno-economic analysis), environment, safety,
policy and regulatory barriers, and just transition across the entire
hydrogen value chain.

In addressing some of the research areas above, it is important that researchers
keep in mind the need to leverage the country’s PGM resource endowment.
Alloying techniques that exploit the best properties of all the PGMs in various
combinations will be critical in order to develop better performing catalysts
while taking advantage of the price variations in the raw materials.

SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

7.

HUMAN CAPITAL DEVELOPMENT

Human capital development is crucial for delivering a sustainable hydrogensociety in South Africa. The focus of the DSI-supported Energy RDI Flagship
Programmes, including the HySA Programme, over the past decade has been
to support MSc and PhD students, which has been critical to the developmentof new knowledge. To date, 635 students (137 supported through the HySA
Programme), comprising 436 MSc (83 from HySA) and 199 PhD (54 from
HySA) students have been supported. The Energy RDI Flagship Programmes
also produced 961 publications (277 from HySA) in Institute for Scientific
Information journals, and 72 patents (31 from HySA) were filed or granted,
which is an indication of the vibrancy of the research ecosystem that exists
to support knowledge generation. To support the objectives of the HSRM,
the master’s and doctoral students should continue to be funded through thefour Energy RDI Flagship Programmes, the bursary schemes of the National
Research Foundation, and the energy-related South African Research Chairs.
A 2019 study by the CSIR and the German-based Institute for Advanced
Sustainability Studies estimates that up to 1.6 million jobs can be created inSouth Africa through energy-sector transformation by 2050.88 However, themajority of these new jobs are expected to be categorised as skilled, requiring
either university education or vocational training. Given the estimationthat one-third of Technical and Vocational Education and Training (TVET)
graduates in South Africa are unemployed, there is a need to address thecritical skills gap between industry demands and the public college offering.
One of the challenges identified by the Department of Labour is limited
skill acquisition, which continues to contribute to the high unemployment
rate among the youth in South Africa. This results in inadequate preparationof youth for entry into a rapidly changing labour market characterised byincreasing digitisation and automation.
The implementation of the HSRM is therefore expected to contribute to
an increase in the market demand for hydrogen and fuel-cell, renewable
power, and battery technologies across various sectors of the economy,
with an increasing need for trained and experienced personnel as well as
accompanying services, such as qualified maintenance technicians, installers,and manufacturing professionals. In a future sustainable hydrogen society inSouth Africa, sectoral job opportunities for skilled graduates are expected
to range from operations and maintenance, to management of PGM mining,refining and beneficiation, transportation and construction, and industrial
manufacturing. These job opportunities will require artisanal, technical, digitaland other skills related to the relevant stages of the value chain.
The implementation of the HSRM is expected to set the pace for thecountry’s creation of a sustainable workforce that is inclusive and greengrowth oriented. Aligning the country’s TVET college system with realindustry needs, and creating opportunities to improve labour absorption in
the implementation of the HSRM, are therefore critical. A sectoral alignment
with industry-specific requirements will facilitate a just labour transition,
where potential job losses in the traditional coal-mining industry, for example,
are mitigated through the upskilling, retraining and on boarding of workers in
the implementation of the HSRM.
The following established or envisaged strategic interventions, aimed at
supporting the role of South Africa’s TVET system in ensuring both asustainable energy and labour transition, will contribute effectively to theimplementation of the HSRM:

7.1 TECHNICAL AND VOCATIONALEDUCATION AND TRAINING(TVET) FUEL-CELL TRAINING
In 2020, the DSI, in collaboration with the Energy and Water Sector
Education Training Authority (EWSETA), Bambili Energy and the Universityof Pretoria, launched a course to train unemployed TVET graduates on the
installation, operation and maintenance of hydrogen and fuel cells. To date, 25
unemployed graduates have undergone the six-week training. Partnerships
are being sought to extend the training to more graduates as part of creatingskills to support the hydrogen economy. Before creating the pipeline forscaling up the number of artisans and technicians that can be absorbed
through the hydrogen economy, it is critical that a comprehensive study isundertaken to understand the required pipeline. In February 2021, the DSI
in partnership with EWSETA and the private sector (local SMMEs, global fuelcell OEMs) commenced a research study to analyse the role of the TVET
college system in the establishment of a hydrogen economy in South Africa,
with the aim of boosting the capacity of TVET colleges to train a greenhydrogen economy workforce.

7.2

TVET SKILLS GAPThe TVET college system does not cater for skills that are specifically relevantto the hydrogen economy. Some level of training involving hydrogen currently
happens in local TVETs located close to SASOL facilities in the form ofchemical technical training and for maintenance, fitting and other mechanicaltechnical requirements. Studies are being conducted on how the TVET
system could be leveraged to develop skills for the hydrogen economy, while
addressing the high unemployment rate among the TVET graduates. This
would also mean a shift in focus from steam methane reforming (SMR) toelectrolyser-based production, resulting in the production of green hydrogenand green ammonia.

7.3 JUST ENERGY TRANSITIONCENTRE
While the transition to a net-zero carbon economy is expected to support
a net increase in jobs, it is expected that there will be some job losses in thetransition. The envisaged establishment of the Just Energy Transition Centre
will focus on re-skilling marginalised communities to take up opportunities
in new and emerging energy areas, such as hydrogen and fuel cells, batteries,
carbon capture and use, and RE technologies. The Just Energy Transition
Centre will be expected to conduct studies with relevant research chairs
to predict market demand for the skills and inform policy to respond withappropriate interventions.

7.4 PUBLIC AWARENESS ANDENGAGEMENT
To promote awareness of the technology and the benefits of integratinghydrogen in the energy mix, a comprehensive public awareness andengagement platform will be created. Such a platform would be designed tofacilitate national discourse on hydrogen and related technologies, showcase
deployments as well as conduct outreach events aimed at disseminating
evidence-based information. The public engagement initiative will require
strong partnerships across the public and private sectors, civil society andacademia.

88. “Future skills and job creation through renewable energy in South Africa: Assessing the co-benefits of decarbonising the power sector”, cobenefits.info/resources/cobenefits-south-africa-jobs-skills.

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SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

8.

GENDER EQUALITY AND SOCIAL INCLUSION (GESI)The implementation of the HSRM will contribute to a growth of green
industries that are sustainable, resource- and energy-efficient, low-carbon,
low-waste, non-polluting and safe. In order to realise the goal of a “justand inclusive net-zero carbon economic growth for societal wellbeing by2050”, the implementation of the HSRM needs to integrate the element ofgender equality. Women’s potential in green industry needs to be realised,

and women need to be empowered to take leadership roles in green
industries as entrepreneurs or industry professionals. A United Nations(UN) report published in February 2021 addressed the barriers most
women entrepreneurs are likely to encounter when starting a green business(Table 8.1).89 Figure 8:1 gives a conceptualisation of the economic and social
barriers in general.

Table 8.1: Barriers to women’s economic empowerment in green industry

BARRIERS TO ADVANCEMENTBARRIERS TO TRANSFORMATION•

Lack of awareness about policies and programmes•

Restricted mobility•

Lack of access to technology, market, capital, collateraland credit resources, networks, mentoring•

Unpaid care work•

Intersectional inequalities•

Discriminatory hiring practices•

Lack of self-confidence•

Lack of access to information•

82

Lack of necessary skills

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8. GENDER EQUALITY AND SOCIAL INCLUSION (GESI) (CONTINUED)

Lack of financial capital

Institutional inequalities

Lack of social capitalSocial inequalities

WOMEN’S
ECONOMICEMPOWERMENTLack of physical capital
Lack of human capital

Cultural inequalities
Internalised sexism

SOCIAL BARRIERSECONOMIC BARRIERSBARRIERS TO ECONOMIC ADVANCEMENTBARRIERS TO SOCIAL TRANSFORMATION

Figure 8.1: Conceptualisation of Women’s Economic Empowerment
Source: UNIDO Report, February 2021
Green industries have a high potential to act as a catalyst for enhanced
gender equality and the empowerment of women in wider society. The
following recommendations, extracted from the UN report, will therefore beconsidered in the implementation of the HSRM, with the aim of encouraging
more women to become green-industry professionals and entrepreneurs:•

Generating visibility and rolemodels: for example, the South African
Women in Science Awards, which profile female scientists andresearchers as role models for young women and girls;•

Strengthening opportunities for women in sectors such as RE andgreen industry;•

Providing mentoring and networking opportunities;•

Raising awareness of opportunities for women in the green industry,for example, green-energy business campaigns focused on women,
increased access to TVET and public information, targeted support forsmall-scale female entrepreneurs, women-only information sessions
introducing the concept of “green industry”;•

Rolling out capacity-building initiatives at local government level on
the design, planning and execution of green initiatives to enhance
understanding of “green” laws;•

Investing in training and capacity-building initiatives for female greenindustry professionals to encourage equal access to promotions,management and leadership roles;•

Developing a pipeline of female talent with the technical skills andknowledge required to secure green-industry jobs and advance tosenior levels;•

Developing targeted leadership and management training programmes
for female green-industry professionals that will support their careeradvancement;•

Hiring women-owned businesses as vendors along the hydrogen andfuel cell value chain; and•Reviewing and developing specific monitoring and evaluation
frameworks that collect baseline sex-disaggregated data with indicatorsfor gender equality in the implementation of the HSRM.

89. United Nations, “Policy Assessment for the Economic Empowerment of Women in Green Industry: Synthesis Report of the Country Assessments in Cambodia, Peru, Senegal and South Africa”, unido.org/sites/
default/files/files/2021-06/Synthesis_Report_Final.pdf.

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9.

MONITORING, EVALUATION AND LEARNING FRAMEWORKParliamentary Portfolio Committee on Science and Technology conduct anoversight visit to HySA Systems at University of the Western Cape

9.1 MONITORING OF THE HSRMOBJECTIVES
Monitoring is a continuing function that uses systematic collection of qualitativeor quantitative data on specified indicators (Figure 9.1). These indicators
provide management and the main stakeholders of an ongoing development

MONITORINGEVALUATIONHigh level indicators, e.g.:• MW installed capacity of H2 generation• Net new decent, green jobs
• Total investment in hydrogen economy

Overarching evaluationquestions

Outcome indicators, e.g.:• M tonnes of H2 generated,
stored, distributed and exported• Carbon emission abatement
through use of H2• Local value added throughmanufacturing H2 products and components
All indicators disaggregated by
GESI; sector; location and H2 type(grey/blue/green)• Is the policy being
implemented as intended?
What is working well andwhat can be improved?
• Is the HSRM on track todeliver on its objectives?
• Did/does the HSRM provide
value for money?
• Which groups in society are
benefiting from the transition
to a Hydrogen Society andwhich are bearing the costs?

Figure 9.1: Schematic of the Monitoring, Evaluation and Learning (MEL) framework

84

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DEPARTMENT OF SCIENCE AND INNOVATION

intervention with indications of progress, achievement of objectives, and how
allocated funds are used. Monitoring of the HSRM is broken down according
to each level of the Theory of Change: each objective, outcome, lever andoutput is identified separately.

LEARNING
Who learns

What about

DSI/Responsible departments

How implementation is going

Implementing departments

Benefits

National Treasury

Costs

Provincial and local government

Value for money

SOEs

Which policies work

Private sector

Opportunities for improvement

Investors

Implications for their activities

SECTION B: THE POTENTIAL FUTURE OF HYDROGEN IN SOUTH AFRICA

9. MONITORING, EVALUATION AND LEARNING FRAMEWORKThe HSRM will contribute to the goal of just and inclusive net-zero carbon
economic growth for societal wellbeing by 2050 through supportinginterlinked objectives. These include supporting the just labour transition
through:

9.2 EVALUATION•

Providing new, high-quality green jobs in the generation and storageof hydrogen;•

Manufacturing hydrogen-related products such as fuel cells andelectrolysers;

Evaluation is the systematic and objective assessment of an ongoing orcompleted project, programme or policy, its design, implementation andresults. The aim is to determine the relevance and fulfilment of HSRM
objectives, development efficiency, effectiveness, impact and sustainability(Figure 9.1). This evaluation should provide information that is credible anduseful, enabling the incorporation of lessons learned into the decision-making
process of stakeholders.

•

The beneficiation of minerals through the supply of value-added
components in the hydrogen value chain;

9.3 THE LEARNING FRAMEWORK•The export of green hydrogen; and•Creating jobs in the local manufacture of hydrogen-related products
and construction of infrastructure, and preserving them in the transport
and industry sectors.

Other objectives of the HSRM include:•

Reducing GHG emissions by replacing fossil fuels in energy-intensive
industry, road and rail transport, and shipping and aviation;•

Enabling the greening of the power sector by providing RE storage tothe grid, and reliable zero-carbon electric and thermal energy for offgrid applications; and•Enabling energy security by providing zero-carbon solutions to thenational electrification plan, and back-up energy to the electricity gridfor critical applications.

The learning framework will provide an opportunity for stakeholders to draw
on lessons learned during the implementation of the HSRM. The overarching
structure will indicate the stakeholders who are expected to learn, as wellas what they learn. Further details will be provided in the sectoral learningplans (Figure 9.1).

Developing domestic manufacturing of hydrogen products and components,
along with the greening of the economy and growing hydrogen exports,
will encourage inward investment. Together with reduced oil imports, thesechanges will also support improvements in the balance of payments.
Realising these objectives will improve South Africa’s access to clean energy
and reduce inequality and poverty.

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10.

CONCLUSION

The NDP 2030 envisions a country that, over the long term, can manage thetransition to a low-carbon economy at a pace consistent with Government’s
public pledges, without impacting negatively on jobs or competitiveness.
It is crucial to consider key guiding principles to ensure hydrogen can beharnessed to benefit all parts of society, now and in the future.To this end, theSouth African HSRM seeks to achieve the following outcomes:•

A clear understanding and acknowledgment of the societal benefits ofhydrogen as an energy carrier;•

A vision for the role of hydrogen in building South Africa, shared byGovernment, business and civil society;•

A commitment to producing clean hydrogen in a way that is sociallyjust and sensitive to the potential impacts on jobs and local economies;•

The necessary human capital to develop relevant hydrogen research,development and innovation;

86

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
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The physical infrastructure to optimally produce, distribute and utilise
hydrogen to benefit South African communities and our environment;•

Industries that have invested in and are actively using hydrogen andhydrogen-related technologies across a variety of applications;•

A supportive policy and regulatory environment that incentivises theinvestment in and use of hydrogen; and•A strong inflow of foreign direct investment, and an outflow of hydrogen
exports that will add meaningful value to South Africa and assist in theeconomic recovery of the country.

If these outcomes can be achieved, South Africa, with its wealth of natural
resources, can take its place at the forefront of the global transition toclean, affordable and sustainable energy, powering a more just and carbonneutral society.

GLOSSARYGLOSSARY (CONTINUED)88

ACRONYM

DEFINITIONASCCI

Automotive Supply Chain Competitiveness Initiative

BCF

Billion Cubic Feet

BH2

Blue Hydrogen

CCUS

Carbon Capture, Utilisation and Storage

CEF

Central Energy Fund

CO2

Carbon Dioxide

COGTA

Cooperative Governance and Traditional Affairs

CTL

Coal to Liquids

CSIR

Council for Scientific and Industrial Research

DBSA

Development Bank of Southern Africa

DFFE

Department of Forestry, Fisheries and the Environment

DFI

Development Finance Institution

DIRCO

Department of International Relations and Cooperation

DHET

Department of Higher Education and Training

DMRE

Department of Mineral Resources and Energy

DOD

Department of Defence

DoL

Department of Labour

DOT

Department of Transport

DPE

Department of Public Enterprises

DPWI

Department of Public Works and Infrastructure

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONGLOSSARY (CONTINUED)ACRONYM

DEFINITION

DSI

Department of Science and Innovation

DTIC

Department of Trade, Industry and Competition

EHC

Electrochemical Hydrogen Compressor

EU

European Union

EWSETA

Energy and Water Sector Education and Training Authority

FT

Fischer-Tropsch

FCEV

Fuel-Cell Electric Vehicle

GDP

Gross Domestic Product

GH2

Green Hydrogen

GHG

Greenhouse Gas

GESI

Gender, Equality and Social Inclusion

GTL

Gas to Liquids

GTS

Green Transport Strategy

H2

Hydrogen

HFCT

Hydrogen and Fuel Cell Technologies

HSRM

The Hydrogen Society Roadmap

HySA

Hydrogen South Africa

ICEInternal Combustion Engine

IDC

Industrial Development Corporation

IEA

International Energy Agency

IEP

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GLOSSARY (CONTINUED)90

ACRONYM

DEFINITIONINDC

Intended Nationally Determined Contribution

IPIntellectual Property

IPCC

Intergovernmental Panel on Climate Change

IPAP

Industrial Policy Action Plan

IPHE

International Partnership for Hydrogen and Fuel Cells in the Economy

IPRIntellectual Property Rights

IRP

Integrated Resources Plan

MEA

Membrane Electrode Assembly

MEL

Monitoring, Evaluation and Learning

MINTEKSouth African Minerals Research Council

Mt

Million Tonnes

NBI

National Business Initiative

NCCRP

National Climate Change Response White Paper

NDC

Nationally Determined Contributions

NDP

National Development Plan

NEM: AQA

National Environmental Management: Air Quality Act, 2004

NERSA

National Energy Regulator of South Africa

NIPF

National Industrial Policy Framework

NOx

Nitrogen Oxide

NT

National Treasury

NWU

North-West University

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONGLOSSARY (CONTINUED)ACRONYM

DEFINITIONPA

Paris Agreement

PGMs

Platinum Group Metals

PetroSA

Petroleum, Oil and Gas Corporation of South Africa

PPD

Peak, Plateau and Decline

PTL

Power to Liquid

PVI

Platinum Valley Initiative

R&D

Research and Development

RDI

Research, Development and Innovation

RE

Renewable Energy

REIPPPP

Renewable Energy Independent Power Producer Procurement Programme

SABS

South African Bureau of Standards

SADC

Southern African Development Community

SAF

Sustainable Aviation Fuel

SAISISouth African Iron and Steel Institute

SALGA

South African Local Government Association

SANEDI

South Africa National Energy Development Institute

SARChI

South African Research Chair Initiative

SAREM

South African Renewable Energy Masterplan

SDG

Sustainable Development Goal

SEZ

Special Economic Zone

SIP

Strategic Integrated Project

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GLOSSARY (CONTINUED)92

ACRONYM

DEFINITION

SMME

Small, Medium and Micro Enterprise

SOEs

State Owned Entities

STI

Science, Technology and Innovation

t

Tonne

TCO

Total Cost of Ownership

TVET

Technical and Vocational Education and Training

UAV

Unmanned Aerial Vehicle

UCT

University of Cape Town

UK

United Kingdom

UN

United Nations

UNFCCC

United Nations Framework Convention on Climate Change

USA

United States of America

USD

United States Dollar

UWC

University of the Western Cape

WHO

World Health Organisation

ZAR

South African Rand

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
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95

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1.

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2.

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3.

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4.

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16.

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17.

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18.

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19.

DMRE, White Paper on the Energy Policy of the Republic of South Africa, 1998, energy.gov.za/files/policies/whitepaper_energypolicy_1998.

20.

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21.

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22.

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23.

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DoT, Green Transport Strategy for South Africa: (2018-2050), transport.gov.za/documents/11623/89294/Green_Transport_Strategy_2018-2050_
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26.

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27.

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28.

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29.

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30.

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31.

Department of Forestry, Fisheries and the Environment (DFFE), South Africa’s updated Nationally Determined Contribution (NDC), 2021, nfccc.int/sites/
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32.

Department of Environmental Affairs (DEA), South Africa’s National Climate Change Response Policy, 2011, environment.gov.za/sites/default/files/
legislations/national_climatechange_response_whitepaper.

33.

National Treasury, Explanatory memorandum on the carbon tax bill, 2018.

94

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DEPARTMENT OF SCIENCE AND INNOVATIONREFERENCES (CONTINUED)

34.

The national inventory for 2017 amounts to 482,016 GgCO2e when land sinks are included.

35.

DFFE, National GHG Inventory Report South Africa 2017, 2021, environment.gov.za/mediarelease/creecy_greenhouse-gas-inventory_report.

36.

University of Cape Town, Technical analysis to support the update of South Africa’s first NDC’s mitigation target ranges, 2021, doi.org/10.25375/
uct.16691950.

37.

ClimateWatch, Historical GHG Emissions, 2018. https://www.climatewatchdata.org.

38.

BRICS is the term to describe the group of major emerging markets comprising Brazil, Russia, India, China and South Africa.

39.

https://mg.co.za/tag/world-health-organisation/.

40.

International Energy Agency, The future of hydrogen: Seizing today’s opportunities, 2021, iea.org/reports/the-future-of-hydrogen; Hydrogen Council,
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41.

International Renewable Energy Agency, Green Hydrogen Cost Reduction: Scaling up Electrolysers to meet the 1.5°C Climate Goal, 2020, irena.org/
publications/2020/Dec/Green-hydrogen-cost-reduction.

42.

For example, emerging and maturing technologies such as Anion Exchange Membrane (AEM) and Solid Oxide Electrolysis Cell (SOEC).

43.

State of California, Low Carbon Fuel Standard, ww2.arb.ca.gov/our-work/programs/low-carbon-fuel-standard.

44.

Hydrogen Council (2020). A path to hydrogen competitiveness: A cost perspective. https://hydrogencouncil.com/wp-content/uploads/2020/01/Path-toHydrogen-Competitiveness_Full-Study-1.pdf.

45.

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46.

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project delays likely, 2020, ieefa.org/wp-content/uploads/2020/08/Asia_Australia_Euro pe-Lead-Green-Hydrogen-Economy_August-2020.pdf.

47.

Ibid.

48.

IEA, Global Hydrogen Review 2021 – Progress in five key areas for hydrogen policymaking, 2021, ea.org/reports/global-hydrogen-review-2021.

49.

Federal Ministry of Education and Research (Germany), Karliczek: Germany and Namibia form partnership for green hydrogen, n.d. bmbf.de/bmbf/shareddocs/
kurzmeldungen/en/Karliczek-Germany-and-Namibia.html.

50.

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51.

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52.

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53.

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54.

Minerals Council SA, 2019.

55.

Hydrogen Council, 2017 Hydrogen Council (2017). Hydrogen scaling up: A sustainable pathway for the global energy transition. https://hydrogencouncil.
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56.

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mineralscouncil.org.za/industry-news/publications/presentations.

57.

https://www.wri.org/just transitions/south-africa/.

58.

International Energy Agency, Global Hydrogen Review 2021.

59.

Department of Transport, Green Transport Strategy, 2018.

60.

South Africa Hydrogen Valley Final Report, October 2021.

61.

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62.

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63.

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64.

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65.

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66.

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67.

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Feasibility_Study_Report_Final_Version.pdf.

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REFERENCES (CONTINUED)

68.

Ibid.

69.

Ibid.

70.

Ibid.

71.

‘Sasol takes lead role in feasibility study for Boegoebaai green hydrogen project’, Engineering News, 6 October 2021, engineeringnews.co.za.

72.

Presidency presentation to Champions: Investment & infrastructure office/infrastructure green hydrogen (H2) South Africa.

73.

Ibid.

74.

Ibid.

75.

‘Sasol announces lead role in feasibility study for the Boegoebaai green hydrogen project’, Sasol, 6 October 2021, sasol.com/media-centre/media-releases/
sasol-announces-lead-role-feasibility-study-boegoebaai-green-hydrogen.

76.

Ibid

77.

Ibid.

78.

‘South Africa’s Sasol firm plans for large hydrogen plant’, Construction Review Online, 8 October 2021. constructionreviewonline.com/news/southafricas-sasol-firm-plans-for-large-hydrogen-plant/;

79.

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energy/527194/sasol-looking-at-massive-green-hydrogen-project-in-south-africa-creating-6000-new-jobs/.

80.

Ed Reed, ‘Sasol signs up green hydrogen study in northwest’, Energy Voice, 6 October 2021. energyvoice.com/renewables-energy-transition/hydrogen/africa-hydrogen/354588/sasol-study-hydrogen-boegoebaai/; See the Just Transition Centre, ituc-csi.org/just-transition-centre.

81.

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IATA Sustainable Aviation Fuel Roadmap, IATA, 2015, iata.org/contentassets/d13875e9ed784f75bac90f000760e998/safr-1-2015.pdf.

84.

‘South Africa’s Sasol forms consortium to produce sustainable aviation fuel’, Reuters, April 14 2021.

85.

reuters.com/world/africa/south-africas-sasol-forms-consortium-produce-sustainable-aviation-fuel-2021-04-14/.

86.

Ibid.

87.

Mission Innovation Discussion Paper, launched at COP26, November 2021.

88.

“Future skills and job creation through renewable energy in South Africa: Assessing the co-benefits of decarbonising the power sector”, cobenefits.info/
resources/co-benefits-south-africa-jobs-skills.

89.

United Nations, “Policy Assessment for the Economic Empowerment of Women in Green Industry: Synthesis Report of the Country Assessments in
Cambodia, Peru, Senegal and South Africa”, unido.org/sites/default/files/files/2021-06/Synthesis_Report_Final.pdf.

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HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONAPPENDICESHYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

99

APPENDIX A: APPROACH AND METHODOLOGY

Deputy Director-General: Technology Innovation, Dr Mmboneni Muofhe
and Dr Philimon Modisha of HySA Infrastructure at the Cofimvaba fuel cell
deployment-October 2021
The purpose of this high-level roadmap is to develop a shared vision forthe hydrogen society of South Africa and translate it into actionable goals
and actions. The roadmap enables multiple stakeholders to collaborate anddevelop a common path towards achieving a preferred future for South
Africa’s hydrogen society. A three-pronged approach was adopted towards
developing the high-level roadmap, which integrates the use of a futures
framework foresight method, a roadmap-development process, and ahydrogen-sector development model. Each component of the methodology
is outlined below.

to developing a roadmap to the future of hydrogen. A futures frameworkhas been adopted to guide the development of foresight into the future ofhydrogen. It offers a systematic study of possible, probable and preferable
futures, including the world views and myths that underlie each future. The
framework is grounded on the following key assumptions about the future tohelp frame the approach to developing the roadmap (Figure 12-1):

THE FRAMEWORK FORESIGHT
METHOD

Therefore:

The emergence and exploration of novel technologies for adoption in the
future presents a multiplicity of contexts which are not predictable with any
measure of accuracy. This is a key principle of developing this roadmap, as the
future of hydrogen in energy is fraught with varying measures of ambiguity,
turbulence, uncertainty, novelty and unpredictability. These ever-pervasive
dynamic environmental conditions prescribe an open-minded approach

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HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION•

There are multiple futures of a hydrogen energy system over thelong term; and•The future is not predictable with any measure of accuracy.

•

Adopt an approach based on plausibility as opposed to probability
when studying the future;•

Develop scenarios and reach consensus on a preferred future; and•Draw from hindsight, and insights from the baseline assessment, todevelop strategic foresights for several plausible scenarios for the futureof hydrogen.

APPENDIX A: APPROACH AND METHODOLOGY (CONTINUED)HINDSIGHT

FORESIGHT

Alternative Futures

LIMIT
S OF

EVIDE
NCE
AND
FACT
S

INSIGHT

ILITY
AUSIB
OF PL
LIMITS

Plausible
Futures:
Preferable
FutureTrendsandDrivers

Hydrogen
DomainDescription

Current
Assessment

Commercial
Modeling

BASELINE
FUTURE

2025

2030

Expected
Future2040

Probable
Future

SECUR
E, BUIL
AND
2050
CAPA D AND EX
BILITIEPS FOR LOIT ASSET
S, RES
THE F
OURC
UTUR
E
ES

O
ITIES T
RTUN
OPPO PABILITIES
D
N
A
A
C
ES
S AND
KNESS
, WEA CES, ASSET
GTHSR
STREN OIT RESOUEXPLPRESENT

PAST

Fossil Fuel –Coal-based
economyDomain Baseline Assessment

POSSIBLE FUTURES

Increasingly
transitioning towards
a renewables-based
economyRoadmap to the prefered futureNet-zero carbonbased economy

Figure 12.1: The Framework Foresight Illustration

THE SOUTH AFRICA HYDROGEN
DEVELOPMENT MODEL
The core team established a hydrogen-development model to enable theidentification of strategic impacts and outcomes needed to deliver benefits ofa material and strategic nature to the South African people, while addressing
global challenges. Secondly, the model had to consider high-priority sectors
for hydrogen application in South Africa.The process of identifying the sectors
took into consideration unemployment, energy poverty, facilitating a justtransition, the addition of socioeconomic value, and sustainable environmental
outcomes and impacts. Thirdly, the framework also considered enablersof hydrogen growth and development such as infrastructure, research,knowledge and innovation, human capital and technological capability. The
hydrogen-development model formed the basis for identifying the ambitions,aspirations and strategic actions required to achieve the identified outcomes
and impacts.

The following elements form the core of the hydrogen-development model:•

Purpose: The reasons and rationale for unlocking South Africa’shydrogen potential and developing a high-level roadmap.

•

Stakeholder benefits: The key impacts and outcomes that South
Africa can achieve in leveraging its hydrogen opportunity.

•

Growth areas: The critical sectors of the economy where hydrogencan most benefit South Africa.

•

Growth enablers: The critical success factors that will enable South
Africa to effectively benefit from the hydrogen opportunity.

HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

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APPENDIX B: STAKEHOLDER ENGAGEMENT
Stakeholders are both beneficiaries and actors, whose perspectives anddesires are critical to developing a deep understanding of the issues, gaps
and opportunities that can be addressed by the roadmap. A collaborative,
multi-stakeholder and multi-disciplinary approach was integrated into theroadmap-development process, with the objective of directing all information,
perspectives and efforts towards unlocking the country’s full hydrogen
potential. The team deployed tools and events to solicit insights from aprioritised list of stakeholders across essential parts of the sector. To this end,a phased stakeholder-engagement process was applied, as outlined below aswell as in Figure 13.1.

STAKEHOLDER QUESTIONNAIRES
The stakeholder-engagement processes started off with questionnaires
sent to stakeholders targeted by the project, based on initial research andconsultation with the DSI and the NWU, to solicit hydrogen insights andforesight. The questionnaires were used to assess the level of engagementof individual stakeholders and groups, identifying growth-area champions toengage in the expert working-group sessions.

INTERVIEWS
Like the questionnaires, individual stakeholders were interviewed to solicit
their insights on how hydrogen could benefit their respective sectors. The
outcomes of the interviews were also used to draft hypotheses presented in
the expert working-group sessions.

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HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONEXPERT WORKING GROUPS
The expert working-group sessions were conducted with stakeholders
from the chosen sectors (namely energy, mining, transport, export, industry,buildings, and RDI), to discuss the questionnaire and interviews, test
hypotheses relevant to their respective sectors, and address gaps identified
in the baseline assessment and interviews. The sessions were also geared atbuilding consensus among stakeholders, and co-developing aspirations for theSouth African Hydrogen Society.

INDUSTRY REFERENCE GROUPS
The draft roadmap was distributed to key stakeholders to solicit their input.
These stakeholders were selected based on their intimate knowledge ofthe sectors in which they operate, that were deemed to be relevant to thedevelopment of the hydrogen economy.

COLLABORATION WORKSHOPS
Post-workshop stakeholder engagement culminated in a collaboration
workshop. The purpose of the workshop was to present the outcome ofthe stakeholder consultation process and confirm the action plan in the draft
roadmap.The session also aimed to inform the stakeholders about the sharedaspirations and secure buy-in for the hydrogen society roadmap, and the
proposed action plan in particular.

HYDROGEN SOCIETY ROADMAP — STAKEHOLDER ENGAGEMENTMILESTONESDSI EXCO approves
the HSRM terms ofreference

Establishment of
Stakeholder Groups(IGC, IRG, EWG)

EWG Consultations
through Workshops>50 Orgs

Theory of ChangeWorkshop with key
stakeholders

Feedback received
from IGC and IRG

MARCH 2020

JULY AUGUST 2020

SEPTEMBER2020

FEBRUARY
2021

JUNE 2021

AUGUST 2019

JUNE 2020

AUGUST SEPTEMBER 2020

Government Task
Team met to develop
the Terms ofReference for the
HSRM

KPMG appointed tolead the stakeholder
consultations

Bilateral talks withgovernment
departments

ACADEMIA/COUNCILS/ R&I

JANUARY FEBRUARY 2021
Stakeholder
consultations on
Theory of Change

GOVERNMENT/PARASTATAL

MAY 2021

JULY 2021

HSRM Draft sharedwith IGC and IRG for
inputsCollaboration
workshop held with
>90 participants

INDUSTRIAL REFERENCE GROUPSTAKEHOLDERS

Figure 13.1: HSRM stakeholder agreement

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HYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATIONHYDROGEN SOCIETY ROADMAP FOR SOUTH AFRICA
DEPARTMENT OF SCIENCE AND INNOVATION

102DEPARTMENT OF SCIENCE AND INNOVATIONDSI Building (Building No. 53)(CSIR South Gate Entrance)
Meiring Naudé Road
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Pretoria
0001
South Africa
Switchboard: +27 12 843 6300
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