Deputy Minister of Public Works and Infrastructure, Sihle Zikalala, announced that the Green Hydrogen National Programme (GHNP) has attracted over R800 billion in projects since Infrastructure South Africa (ISA) gazetted nine Strategic Integrated Projects (SIPs) in 2022.
At the Green Hydrogen Devac Conference in Sandton, Zikalala noted that around 20% of these investments have progressed to the bankable feasibility stage.
The range of projects spans from prefeasibility studies to execution and includes significant initiatives such as the Isondo Precious Metals (IPM) fuel cell and electrolyser manufacturing facility in Gauteng, the Prieska Energy Cluster’s Green Ammonia Production facility in the Northern Cape, and the Hive Green Ammonia export project in the Eastern Cape.
Additional projects encompass the Boegoes Bay Green Hydrogen Port Rail and Infrastructure Project in the Northern Cape, the ArcelorMittal Saldanha Green Steel Project in the Western Cape, and a 60MW hydrogen production facility in Sasolburg, Gauteng.
Zikalala emphasized that only 1% of South Africa’s land is needed to support initiatives in the green hydrogen economy, ensuring that agricultural and residential areas remain unaffected. Furthermore, an additional 5.2 million hectares in Renewable Energy Development Zones could be used for these projects.
He highlighted that ISA, a part of the Public Works Department, has played a crucial role in enabling South Africa’s green hydrogen potential. By designating the GHNP as a SIP, projects benefit from streamlined development processes, including quicker approvals.
Zikalala outlined the government’s priorities under the seventh administration: promoting inclusive growth and job creation, alleviating poverty, and establishing a capable, ethical, developmental state.
He urged industry leaders to collaborate with the government in localizing manufacturing within the green hydrogen value chain, pointing out that South Africa has the capacity to produce between six to 13 million tons of green hydrogen annually by 2050.
He concluded by noting that South Africa remains an attractive destination for green hydrogen investments, with further opportunities in green shipping, green fertilizer production, electrolyser manufacturing, pipeline development, and new port developments.
