Green Hydrogen Program Attracts Over R800 Billion Investments

The Green Hydrogen National Program (GHNP) attracted over R800 billion in new projects, with about 20% of these investments are now at the bankable feasibility stage, according to a statement from Public Works and Infrastructure Deputy Minister, Sihle Zikalala.

The news follows after the government announced nine Strategic Integrated Projects (SIPs) with a capital value of R300 billion

Public Works and Infrastructure Deputy Minister Sihle Zikalala revealed this investment information on Wednesday during the Green Hydrogen Devac conference in Sandton, Johannesburg.

"The seventh administration has identified three priorities: driving inclusive growth and job creation, reducing poverty and tackling the high cost of living and building a capable, ethical and developmental state," Public Works and Infrastructure Deputy Minister Sihle Zikalala said, SA News reported.

He added, "We look up to you to take a lead in facilitating green hydrogen manufacturing capability in a manner that localizes the production of upstream and downstream value-added products. Working together, South Africa can realize its potential to produce six to 13 million tons of green hydrogen and derivatives per year by 2050."

Zikalala emphasized that South Africa remains a promising destination for green hydrogen investment, stressing that there are still many opportunities for investment in areas like green shipping, green fertilizer production, electrolyzer manufacturing, pipeline development and new port projects.

Infrastructure South Africa (ISA), an arm of the Department of Public Works and Infrastructure, announced the SIPs in 2022. According to Zikalala, these projects are at various stages of development, from early planning to actual implementation.

Some of the projects include the Isondo Precious Metals (IPM) facility in Johannesburg, which will manufacture fuel cells and electrolyzers in Gauteng. Another project is the Prieska Energy Cluster's Green Ammonia Production facility in the Northern Cape.

The Northern Cape provincial government is also leading the Boegoes Bay Green Hydrogen Port Rail and Infrastructure Project.

Other notable projects are the Hive Green Ammonia export project in the Eastern Cape, the Arcelor Mittal South Africa (AMSA) Saldanha Green Steel Project in the Western Cape and the Sasolburg 60MW H2 production project in Gauteng.

Zikalala stated that South Africa only needs one percent of its land to support green hydrogen projects. This land is currently not suitable for farming or housing and using it for green hydrogen could create jobs and boost the economy.

He also mentioned that ISA plays a key role in helping the government support green hydrogen opportunities in the country.