Public procurement notice: Contract Award Notice
Published: 2022-11-30
Buyer: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Country: DE
Contract type: Services
Procedure: Competitive procedure with negotiation
CPV classification: 65400000 | 71314000: Energy and related services
Estimated value: 516495 EUR
Award criteria: The most economic tender

Technical requirements: In the context of a rapidly decreasing global carbon budget and urgency to identify adequate solutions for decarbonizing the so-called hard-to-abate sectors, the demand for "green" hydrogen (H2), which refers to H2 produced on basis of renewable energy sources via electrolysis, and renewable hydrogen-based products (PtX) such as ammonia and synthetic jet fuels, is steadily increasing. Many off takers (e.g. Germany, the EU, Japan) are willing to pay a premium price and to sign long-term supply agreements to stimulate the renewable H2/PtX market development. Renewable hydrogen, however, also offers domestic use opportunities to countries like South Africa, characterized by favorable solar and wind energy conditions, sufficient mineral resources and existing hydrogen value chains and industries. Given this potential, and within the framework of the German National Hydrogen Strategy, the Governments of Germany and South Africa agreed to cooperate on a renewable hydrogen project with the objective to contribute to the establishment of a green hydrogen economy for South Africa. The project "Promoting the development of a hydrogen economy for South Africa (H2.SA)" is part of the Development Cooperation (DC) program "Energy and Climate (Green Economy) in South Africa". The program aims to support the partner government in achieving its climate goals and to contribute to a more environmentally sustainable and less coal-based as well as climate-smart economy.
the first consortia of companies are currently building their first major plants around the world, with investment costs in the hundreds of billions of dollars. A participation in these new markets will require a massive expansion of RE capacity, far beyond the South African government's previous expansion plans; but in change, it offers new, alternative job opportunities, especially for workers employed in the crisis-ridden coal sector.
The overall goal of this project is defined as: The conditions for the development of a green hydrogen / power-to-X economy in South Africa are improved.
(1) Decision makers have a basis for improving the strategic and regulatory framework for a hydrogen economy.
(3) The technical capabilities of selected actors from politics, business, research, and civil society on the subject of hydrogen have been strengthened.
(4) Relevant stakeholders' knowledge of the potential environmental and social impacts of a hydrogen economy is improved.
The activities included in this tender "South Africa: Renewable H2 market potential and value chain analysis" are focused on an improvement of the conditions for companies to participate in a South African green hydrogen economy, generating and improving information about the renewable H2 market potential for South Africa and assessing most feasible applications in different time horizons. The H2/PtX value chain is to be analysed in detail to detect its strengths as well as weaknesses, according to the requirements of the emerging H2 market. From this, opportunities and recommendations for business enterprises and local research academia shall be developed, to close the identified gaps along the value chain. Besides this, the activities of this tender aim at strengthening the technical capabilities of selected actors from politics, business, research and civil society on the subject of (renewable) hydrogen.
The fulfilment of these two main targets may pave the way for South African companies to participate in a South African (green) hydrogen economy and for improved technical capabilities.
The contractor is responsible for actively contributing to the achievement of following targets/outputs of the project "Promoting the development of a hydrogen economy for South Africa (H2.SA)":
- Module target: The conditions for building a green hydrogen/power-to-X economy in South Africa have improved.
- Module objective indicator 3: An H2/PtX technology roadmap developed by national and international research institutions to increase value creation in South Africa has been published.
- Output 2: The conditions for companies to participate in a South African hydrogen economy have improved.
- Output 3: The technical capabilities of selected actors from politics, business, research, and civil society on the subject of hydrogen have been strengthened.
(1) Green H2 market potential of South Africa, based on a H2 applications - competitiveness analysis between fossil and renewable alternatives.
Work package (1) includes a H2 application-competitiveness analysis, the elaboration if a dynamic LCOX tool for monitoring future price and cost developments of renewable hydrogen/its derivates, the identification of the renewable H2 market potential for South Africa, as well as the dissemination of results and capacity building of selected stakeholders.


Winner: GFA Consulting Group GmbH
Award value: 516495
Number of bids: 5