South Africa's Ambitions in the Green Hydrogen Economy
Key Ideas
  • South Africa aims to produce 1mt/yr of green hydrogen by the end of the decade, potentially adding ZAR$74b to the economy by mid-century.
  • The country's vast renewable resource potential could allow it to produce 10mt of green hydrogen by developing just 1% of its landmass.
  • The government expects this volume of green hydrogen to hold a 7% share of the global market, positioning South Africa as a key player in the green hydrogen industry.
  • Despite opportunities, challenges like a funding gap and a lack of regulatory framework need to be addressed for South Africa to fully capitalize on the green hydrogen economy.
South Africa is eyeing a significant role in the global green hydrogen export market, aligning with the trend observed in Saharan countries. The government's ambitious target of producing 1mt/yr of green hydrogen by the end of the decade highlights the country's commitment to renewable energy. With the potential to contribute ZAR$74b to the economy by mid-century, green hydrogen offers a promising economic opportunity for South Africa. The abundance of renewable resources positions the country favorably, as utilizing just 1% of its landmass could result in the production of 10mt of green hydrogen. This volume is expected to give South Africa a notable 7% share in the global market. Despite these prospects, challenges such as a funding gap and regulatory hurdles pose significant obstacles. Overcoming these challenges is crucial for South Africa to fully leverage the benefits of the green hydrogen economy and emerge as a key player in the international market for green hydrogen and synthetic e-fuels.
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