Professor Sampson Mamphweli, the head of the department and innovation’s energy secretariat at the Sanedi, on Friday said South Africa held the keys to the development of large-scale hydrogen technology as home to 70% of the world’s deposits of platinum-group metals.
The South African National Energy Development Institute (Sanedi) said on Friday that it foresees as much as R300 billion foreign direct investment in the next three to five years by Japanese companies, who want to benefit from South Africa's green hydrogen economy.
Green hydrogen is when the energy used to power electrolysis comes from renewable sources like wind, water or solar.
This comes after the Japan External Trade Organisation (Jetro) earlier this month hosted a high-profile Japanese business delegation from more than 30 companies, together with South African private and public sector delegates at a green hydrogen seminar in Johannesburg.
The seminar followed the signing of a memorandum of cooperation (MoC) between Japan’s Ministry of Economy, Trade and Industry and South Africa’s Department of Higher Education, Science and Innovation in October last year.
Professor Sampson Mamphweli, the head of the department and innovation’s energy secretariat at the Sanedi, on Friday said South Africa held the keys to the development of large-scale hydrogen technology as home to 70% of the world’s deposits of platinum-group metals (PGMs).
Mamphweli said Africa’s inability to beneficiate its natural resources had hamstrung development on the continent for dozens of decades, and South Africa was determined to not repeat the mistake in its transition to a new energy era.
He said South Africa’s partnership with Japan was accelerating the development of the hydrogen economy to a significant degree.
“It is an opportunity we cannot afford to waste,” Mamphweli said.
“The multibillion-rand foreign direct investment – as much as R300 billion in the next three to five years – will not only transform the green-energy sector, but our country in its entirety in ways we might not even fully grasp yet.”
Hydrogen-related engagements between the countries started three to four years ago when Japan first expressed an interest in buying green hydrogen from South Africa.
The South African government welcomed the approach having already identified the east Asian nation as the global leader in hydrogen economy technology and a valuable potential partner in realising South Africa’s hydrogen society roadmap.
Meetings at the highest levels of government resulted in the signing of a memorandum of cooperation between South Africa and Japan in November 2023 when a South African delegation led by Higher Education Minister Blade Nzimande travelled to Japan.
Since then, progress has been made to implement the provisions of the agreement, with local companies Hive Energy and Sasol having already signed agreements with Japanese investors and companies.
The Hive Energy project alone will create in excess of 1 500 jobs.
On its visit earlier this month, the Japanese delegation went to the University of Cape Town where researchers presented the technologies they have developed, focusing on membrane electrode assemblies (MEAs) that Japanese companies want to use in their products at an industrial scale.
Manufactured, using one of the platinum group metals (PGMs) abundantly available in South Africa, MEAs are at the heart of hydrogen fuel cell and electrolyser applications.
“Getting Japanese companies to work with us on catalytic projects such as these, will allow our hydrogen economy to take a quantum leap forward,” noted Mamphweli.
The delegation also visited the University of the Western Cape where they inspected the hydrogen-powered forklifts and scooters that had been developed there, as well as refuelling systems.
In addition to job creation, green hydrogen production will also alleviate South Africa’s grid-energy shortage.
Mamphweli said the energy needed to run hydrogen systems was mostly consumed at night, leaving it available during the day to supplement grid electricity.
He said this electricity could then be used or stored for later use, and this might assist with easing the pressure on the grid, with the Nelson Mandela Bay Municipality having already entered into an agreement with Hive Energy to take some of their green energy.
“Collaboration with Japan is invaluable in helping us understand what is required to stimulate the hydrogen economy,” Mamphweli said.
“Our goal is to develop a value chain that starts with the mining of PGMs and ends with established industries that supply technology and products for local use and export. We want to build the hydrogen sector on local beneficiation of our Platinum Group Minerals.”
BUSINESS REPORT