Hydrogen Energy in SA and the European Union's Influence

The Minister of Electricity introduced the future implementation of the green hydrogen economy, which provides the best opportunity to re-industrialise the South African economy, drive localisation, preserve and create new jobs, and introduce new skills for development.

Reportedly, the European Commissioner for Energy Kadri Simson, Minister for Electricity and Energy Kgosientsho Ramokgopa and Minister of the Department of Trade, Industry and Competition Parks Tau announced that the European Union (EU) has committed around R628 million (€32 million) in grants to support the development of South Africa’s emerging green hydrogen industry. 

“This partnership between the European Union and South Africa focuses on efforts to build more renewable energy infrastructure, improve energy efficiency, and promote sustainable practices,” said Simson, Ramokgopa and Tau in a joint statement.

The Minister of Electricity conveyed how this new deal would propel the South African economy and job creation. 

“We think that green hydrogen provides some of the best opportunities for the country to reindustrialise given the fact that we are sitting on significant mineral endowments in our country, our ability to beneficiate locally and our ability to access more lucrative markets – the European Union being one of those markets”.

"We think that green hydrogen provides some of the best opportunities for the country to really industrialise”, said Kgosientsho Ramokgopa

To go in-depth, the first allocation of money which is about R490 million grant, is said to leverage infrastructure investments across the hydrogen value chain, covering production, transportation, storage, and downstream industries. The second grant of R138 million is said to assist Transnet.

During the second green hydrogen summit last year on October 13, the government predicted the hydrogen economy has the potential to add 3.6 percent to our GDP by 2050 and approximately 370,000 jobs.

This new hydrogen implementation is deemed to be one of the big frontier strategic sectors expected to attract foreign and domestic direct investment.