EU and South Africa Partnership on Green Hydrogen: A Key Component of Global Energy Future
Key Ideas
  • The European Union sees green hydrogen as vital for decarbonising heavy industries and part of the transport sector, setting ambitious production and import targets for 2030.
  • EU's partnership with South Africa includes a substantial financial deal to support the country's green hydrogen agenda and rejuvenate key state-owned entities like Transnet.
  • While environmental groups raise concerns about colonial practices and water usage, President Cyril Ramaphosa highlights the potential economic benefits, including a GDP increase and job creation.
  • Despite the significant EU funding, experts warn that more substantial investments are needed for South Africa to become a major player in the global green hydrogen market.
The European Union views green hydrogen as a crucial element in the global energy transition and has emphasized its partnership with South Africa in fostering green hydrogen initiatives. Frank Oberholzer, representing the EU delegation to South Africa, highlighted the importance of green hydrogen for decarbonizing heavy industries and parts of the transport sector. The EU's hydrogen strategy aims to produce and import substantial amounts of green hydrogen by 2030. A recent deal worth R628 million includes support for South Africa's green hydrogen ambitions, with a portion allocated to revitalizing Transnet. While the EU believes the allocated funds will be appropriately managed through entities like Agence Française de Développement, concerns have been raised by environmental groups regarding potential negative impacts and colonial practices associated with the green hydrogen industry. Despite this, President Cyril Ramaphosa sees green hydrogen as a significant contributor to the economy, projecting GDP growth and job creation. Experts, however, caution that the EU grants may fall short of the considerable investments required for South Africa to emerge as a prominent player in the global green hydrogen market. The country's just energy transition plan, unveiled at COP28, positions green hydrogen as a key component for achieving decarbonization in an equitable manner. As the EU expresses full support for South Africa's green hydrogen agenda, it acknowledges that international cooperation is crucial for advancing green hydrogen initiatives.
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