New project to create 30,000 jobs a year in South Africa
Higher Education, Science and Innovation minister Blade Nzimande says his department has begun work on the country’s new Hydrogen Valley Corridor project.
Hydrogen and fuel cell technologies offer an alternative source of clean electricity, while hydrogen allows for energy to be stored and delivered in usable form.
Using hydrogen as an energy carrier could potentially reduce South Africa’s dependence on fossil fuels that cause climate change while reducing the country’s reliance on imported oil.
Hydrogen valleys have been used successfully in other countries to promote clean emerging technologies and their commercial viability in support of emissions reduction.
Presenting his annual budget speech on Thursday (3 June), Nzimande said the Hydrogen Valley Corridor covers three hubs with a high concentration of hydrogen demand and access to green hydrogen, one in Johannesburg Hub, one in Mogalakwena/Limpopo and one in Durban/Richards Bay.
“The study identified nine catalytic projects across the mobility, industrial and buildings sectors to kick-start the hydrogen economy. These projects will cost approximately $1.2 billion to implement.
“In terms of socio-economic benefits for South Africans, the implementation of the South African Hydrogen Valley corridor could create 14,000 to 30,000 direct and indirect jobs per year by 2030, and by 2050, potentially contribute $3.9 billion – $8.8 billion (R60.2 billion – R123 billion) to GDP through direct and indirect contributions,” he said.
South Africa’s proposed hydrogen valley will start near Mokopane in Limpopo, where platinum group metals (PGMs) are mined, extending through the industrial and commercial corridor to Johannesburg and leading finally to Durban.
The hydrogen valley will serve as an industrial cluster, bringing various hydrogen applications in the country together to form an integrated hydrogen ecosystem.
Jobs
A study focusing on the valley, published at the end of 2021, shows that as many as 32,000 jobs could be added by 2030 – with these figures based on initial investments only. Fuel cell investment may further contribute to job creation beyond these figures, the department said.
“This job growth may be seen in sectors across the whole hydrogen value chain, starting at the sourcing of resources such as water resources management and platinum mining, to production including electrolyzer development, to transport including the pipeline and trucking industries, to storage such as liquefaction, to finally applications such as fuel cell manufacturing.
“Jobs span the entire hydrogen value chain from R&D, engineering, maintenance, training and outreach. This job creation also has the potential to contribute to the just transition; for example, jobs requiring training the workforce will put male and female workers on equal footing.”
Costs
South Africa will need to attract investment of $14 billion if it is to develop a substantial green hydrogen industry, Bloomberg reported in May, citing the head of the government’s climate finance task team.
An initial amount of $1 billion would be needed to create an industry that could export 20,000 tons of the climate friendly fuel annually and a further $13 billion to attain a 270,000 ton target, Daniel Mminele, the task team head said.
Mminele, a former central banker, was this year appointed to negotiate details of an offer of $8.5 billion in climate finance from some of the world’s richest nations to help South Africa cut its reliance on coal.
The $8.5 billion funding package has been put together by the UK, US, Germany, France, and the European Union – designed to drive a shift to green energy.
Still, he said that some of that money would need to go toward developing green hydrogen and electric-vehicle industries in South Africa.
“By decommissioning coal-fired power stations through a managed process and rapidly expanding alternative sources of power, South Africa can achieve greater security of supply,” he said.
“In addition, investments in green hydrogen and electric vehicles are essential complementary investments.”
Loading ...