SA’s ‘hydrogen valley’ plan
PROJECTION: SET TO ADD R146BN TO GDP
Country can become ‘global centre for green hydrogen production’.
South Africa is looking to unlock its nascent hydrogen economy with government envisioning the development of an expansive “hydrogen valley” stretching from Limpopo to Gauteng and down to KwaZulu-Natal – a plan that is being backed by mining giant Anglo American.
Speaking at the conglomerate’s unveiling of its first hydrogen-powered nuGen Zero Emissions Haulage Solutions truck at the Mogalakwena mine in Limpopo on Friday, Anglo American Platinum (Amplats) CEO Natascha Viljoen said the group is championing the plan.
“Hydrogen has a significant and wide-ranging role to play in achieving a low carbon future – particularly as an energy carrier enabling the development of a renewables-based power generation system …
“We are particularly excited about the potential of nuGen, among other opportunities, as we work to champion the development of South Africa’s hydrogen valley. South Africa is one of only four countries that can generate more renewable energy than what we need for ourselves. This means we can become an effective exporter of energy which will create a whole new economy.”
In October 2021, the department of science and innovation (DSI), together with the SA National Development Institute, published a feasibility report for the proposed hydrogen valley, noting it would span about 835km from Mogalakwena, Limpopo, along the industrial and commercial corridor in Joburg and lead to the south of Durban.
The study notes the proposed valley has the potential to add between R65 billion and R146 billion to the country’s GDP through direct and indirect contributions.
It estimates that between 14 000 and 30 000 jobs can be created annually by 2050 by kickstarting SA’s hydrogen economy. The report also predicts the demand for hydrogen within the valley alone (including the hub cities and provinces along the route) could reach up to 185kt by 2030.
Speaking at the Anglo American hydrogen truck launch, President Cyril Ramaphosa said the hydrogen valley would position SA as a “global centre for green hydrogen production”.
He added: “It will lead to the creation of new industries, aid the decarbonisation of sectors like transportation, manufacturing and construction, and create new jobs for our people in all these provinces.”
The hydrogen valley proposal follows Ramaphosa 2021 State of the Nation Address in which he cited hydrogen fuel cells as an integral alternative energy source of national priority.
He also established the Presidential Coordinating Commission on Climate Change to facilitate a climate resilient economy and aid the transition to a low-carbon economy.
Director-general at the DSI Dr Phil Mjwara believes the hydrogen valley is an important national initiative that will aid SA’s post-Covid Economic Reconstruction and Recovery Plan. “The establishment of a South African hydrogen valley is therefore seen as an opportunity that has great potential to unlock growth, revitalise the industrial sector, and position South Africa to be an exporter of cost-effective green hydrogen to the world,” he said.
“Hydrogen, therefore, remains an integral part of our Economic Reconstruction and Recovery Plan.”
Mogalakwena mine is the first in SA to successfully launch a hydrogen plant and nuGen hydrogen-powered mine haul truck. The trucks are expected to replace the mine’s 40 diesel haul trucks and will supersede the company’s fleet of around 400 trucks by 2040.
The mine’s head of technology development, mining and sustainability, Julian Soles, said the move will be equivalent to removing 500 000 diesel cars off the road.
Soles says although the truck is fully functional, a few commissioning procedures remain outstanding which hinder it from functioning on a commercial scale just yet. This transition is expected to “take form” in 2026.