Mantashe talks up multi-billion-rand hydrogen revolution in South Africa
The minister of mineral resources and energy, Gwede Mantashe, says that it is in the best interests of South Africa to continue to mobilise its investments in exploration for the development of green hydrogen initiatives.
Speaking at the continent-wide Africa Energy Indaba, the minister said that South Africa, alongside the Democratic Republic of Congo and Mozambique, has a significant share of global reserves for key minerals.
He said the continent accounts for 40% of the global reserve of cobalt, manganese, and platinum – minerals crucial for battery and hydrogen technology construction.
“We believe that it is in the interest of Africa that a rigorous mineral exploration programme is implemented to uncover these unknown deposits in many other countries of our continent,” Mantashe said.
“For its part, South Africa continues to mobilise investments in exploration, informed by the understanding that it is the lifeblood of mining, which has been the backbone of our economic development for over 150 years.”
“Unless we explore, there can be no beneficiating from the mineral reserves that our continent is endowed with,” he added.
The two largest producers of platinum group metals with potential for hydrogen development are South Africa and Zimbabwe, Mantashe said.
The export and creation of green hydrogen are expected to be a highly profitable industry for South Africa.
According to Precedence Research, the global market for green hydrogen is predicted to grow at a CAGR of 54% from 2021 to 2030, reaching $89 billion by 2030.
“Today, there is no doubt that if African leaders work together, we will achieve a great deal for the continent in the hydrogen revolution,” said Mantashe.
“Africa has the potential to produce 5,000 megatonnes of hydrogen per year at less than $2 per kilogramme—equivalent to global total energy supply today.”
Green hydrogen is produced by extracting hydrogen from water using renewable energy sources like wind and solar power.
South Africa has already received a budget of up to R300 million to research the industry, with input from Germany and Japan. The country also aims to attract around $250 billion for green hydrogen.
Green hydrogen initiatives form part of the country’s Just Transition Framework to shift the country away from an overreliance on fossil fuels.
Mantashe has consistently supported coal production and the reliance on coal-fired plants at the embattled Eskom over renewables.
In early February this year, Mantashe said that mining companies should not abandon their coal exploration prematurely to shift toward renewables.
President Cyril Ramaphosa has also supported the use of coal as a key energy source, despite making a move toward renewables.
South Africa finds itself in a difficult situation where it needs to decrease its dependence on coal to comply with its Just Transition plan, but at the same time, it remains heavily reliant on coal due to the pressing energy crisis. This creates a catch-22 for the country.
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