Coming clean: In a bid to lower its carbon footprint, Anglo American this year is using the world’s biggest green-hydrogen powered nuGen truck at the Mogalakwena mine in Limpopo, owned by Anglo American subsidiary Anglo American Platinum.
South Africa will be shut out of global trade if it doesn’t have clean technology suitable for the future of the energy sector by 2030, warned James Mackay, chief executive of the Energy Council.
“This will lead to a rapid decline in the manufacturing and energy industry,” Mackay said at the Hydrogen Economy Discussion 2023 held in Johannesburg on Friday.
He added that there was no more time for ideological debates about the protection of coal constituencies when there’s a rapid shift towards cleaner energy in other parts of the world and that South Africa needed to start acting on green hydrogen projects or risk losing out on investments.
Green hydrogen has been considered the “fuel of the future” because of its ability to produce energy without harmful greenhouse gas emissions. When used in fuel cells, it generates electricity by combining hydrogen with oxygen, producing only water and heat as byproducts.
But green hydrogen is not without its problems. The International Council on Clean Transportation has said that green hydrogen is only truly green if it is made from renewable energy.
Local experts, including Rod Crompton, of the African Energy Leadership Centre at the University of Witwatersrand, have warned that although green hydrogen does not emit greenhouse gases, it is expensive to produce and to transport.
Crompton said another concern was that hydrogen is volatile and “extensive safety measures are required to prevent leakage and explosions”.
“Hydrogen is more difficult to handle than conventional fossil fuels. It is a colourless, odourless and tasteless gas, unlike conventional hydrocarbons. This makes leak detection more difficult and increases the risk of fire or explosion. Hydrogen fires are invisible to the human eye.”
He also said South Africa lacked skilled professionals who know how to handle hydrogen.
In 2021, the department of science and innovation released its final Hydrogen Valley report, which stretches from the Bushveld complex — where platinum group metals are mined — to the larger region around Mogalakwena in Limpopo’s Waterberg area, Johannesburg and Durban/Richards Bay.
Funding
During the Hydrogen Economy Discussion, the representative for the department of science and technology, Rebecca Maserumule, said more clarity was required about funding hydrogen initiatives.
“If we don’t get projects on the ground, we don’t get the funding. We’re going to lose confidence. I say let’s get some money on the ground.
“Don’t make the conditions so onerous that people just say it’s just not worth it and then go back to traditional sectors, where it’s pretty easy,” she said.
Gauteng Industrial Development Zone chief investment facilitator Maidei Matika said although there was money to support the green economy, the difficulty was getting the funds.
She said South Africa is in the process of finalising an agreement between Germany and the Industrial Development Zone regarding finances.
Money was allocated for hydrogen in the $8.5 billion pledged by wealthy countries at Cop27 last year. According to the treasury, 22% about (R319 billion) is for the hydrogen industry.
But, said Matika, political, economic and infrastructural constraints have hindered the smooth execution of hydrogen projects.
Roadblocks
One of the major roadblocks is the reliance on traditional fossil fuels, such as coal, as the primary source of energy.
The Presidential Climate Commission’s report, released in June, said shifting away from fossil fuels requires political will and substantial investments in renewable energy sources, which have been slow to materialise.
It added that South Africa’s inconsistent approach to renewable energy regulations has created an environment of uncertainty that stifles innovation and investment.
This comes after Electricity Minister Kgosientsho Ramokgopa was given a green light to keep Eskom’s coal-fired power plants functioning past their decommissioning years.
The Presidential Climate Commission’s report also notes that the delays in South Africa’s transition to renewable and hydrogen energy risked ceding market leadership to other countries that have already made progress in the hydrogen economy.
Mandisa Nyathi is a climate reporting fellow, funded by the Open Society Foundation for South Africa.