Hydrogen has been described as ‘the fuel of the future’, always promising results that somehow seem just out of reach. Now it looks like the future has arrived. 

South Africa is not only well positioned to adopt the manufacture of green Hydrogen but this could also provide some much needed economic benefits for the country.

What is green Hydrogen?

Hydrogen is the most abundant element in the universe with a high energy density. Unlike distressing images of the Hindenburg would suggest, Hydrogen is much safer than commonly thought. In recent decades, it has become increasingly attractive as an alternative to fossil fuels. Hydrogen is a compelling form of energy transportation and storage that could unlock greater potential for other forms of renewable electricity generation. Hydrogen provides a crucial solution to intermittent supply and demand peaks associated with wind, solar and hydro electricity generation. To this effect, hydrogen offers a viable means of storing energy which can then be converted to electricity.

Several countries have touted green hydrogen as a vital component of their decarbonization strategies and post-fossil-fuels-based economies. This is because, the byproducts of hydrogen through combustion or electrochemical reaction are, simply, heat and water. Green hydrogen, then, is hydrogen that has been produced using renewable energies through a process of electrolysis (see Figure 1).


Source: Guy Bowden


Why now?

Since 2012 hydrogen has gathered renewed and significant interest. Patel (2020) notes that this has been driven by a strong global emphasis on emissions reduction and hydrogen’s ability to meet policy objectives such as:

  • energy security
  • local air pollution 
  • economic development
  • energy access
  • increased synergies between renewable electricity generation and hydrogen as a means of energy storage
  • investment momentum stemming from other sustainable technology success. 

In particular, demand for green hydrogen has been accelerated by the European Union, Japan and South Korea who are positioning themselves as large importers of green hydrogen (Patel, 2020). This creates a significant opportunity for countries with high levels of renewable energy potential such as South Africa to become major exporters of green hydrogen.

Forbes has described this green Hydrogen revolution as the future, stating that “seven of the biggest green hydrogen project developers (have) come together to launch the Green Hydrogen Catapult Initiative in a bid to increase the production of green hydrogen 50-fold in the next six years.”
Due to this new initiative, the cost of green hydrogen could be cut to less than $2/kg, which would sway manufacturing intensive countries to convert and help to cut emissions from the world’s most carbon-intensive industries including steelmaking, shipping, chemicals production and power generation. 


South Africa as a hub for renewable energy and green Hydrogen production

South Africa has been identified as a major potential hub for green Hydrogen production. The country has abundant wind and solar potential – among the highest in the world (Hydrogen Council, 2020; Roos & Wright, 2021). As a mining hub, the country also possesses 80% of the world’s Platinum group metals – critical resources used in the production of Hydrogen through electrolysis as well as electricity generation from hydrogen using fuel cells (Minerals Council South Africa, 2019). On top of this South Africa already possesses significant knowledge, intellectual property and expertise in hydrogen and fuel cell technology production. SASOL and Petro SA have existing expertise and infrastructure that can be used in the production, storage and transport of hydrogen. SASOL is experienced in producing brown hydrogen from coal. While brown hydrogen is not environmentally friendly, this can be combined with carbon capture storage to reduce carbon emissions by around 90% (Hydrogen Council, 2020). This would allow South Africa to capture a first mover advantage while infrastructure for green hydrogen production is developed (Patel, 2020). Furthermore, Petro SA’s large gas-to-liquids refinery near Mossel Bay is running out of natural gas and is well positioned if it is to be repurposed to produce Hydrogen. The facility’s close proximity to the Coega SEZ and deep-water Port of Ngqhurha has further made it an attractive hub for the production, storage and export of Hydrogen gas (Roos & Wright, 2021).

Economic opportunities for green hydrogen

According to Air Products South Africa (Pty) Ltd, the price of grey hydrogen in South Africa is approximately R300 per kg in February 2021. This is far from the Japanese target price for imported blue/green hydrogen set at R52.20 per kg. However, this has been labelled as achievable for South African hydrogen producers (M. Creamer, 2020). Furthermore, a joint European Union and South African investigation into power fuels and green hydrogen found that a long-term price of R26.50 per kg for exported South African green hydrogen is possible (Roos & Wright, 2021).

Table 1: SA hydrogen prices

Hydrogen Prices Price (ZAR per kg)
Current price for industrial hydrogen in South Africa 300.00
Japanese target import price for green hydrogen 52.20
Long term price of South African green hydrogen 26.50

Source: (Air Products South Africa (Pty) Ltd, 2021; M. Creamer, 2020; Roos & Wright, 2021)


Source: (Enertrag, 2021)

Figure 2 shows the potential for surplus renewable energy generation to produce hydrogen in South Africa. For renewable energy to meet South African electricity demand there will be inevitable surpluses during off peak hours as well as when wind and solar electricity generation operate at the same time. This surplus electricity generation would otherwise be curtailed. The figure shows a significant opportunity for green hydrogen production through renewable energy in South Africa that would otherwise be wasted. 

Green hydrogen in the transport sector

Green hydrogen has been targeted as a viable energy source for the transport sector, especially in sectors where CO2 abatement is difficult (Metcalfe, Burger, & Mackay, 2020). For heavy-duty and long-range transport applications hydrogen-powered vehicles are expected to become more cost-effective than battery electric vehicles in the short term (Hydrogen Council, 2020). Table 2 shows the expected timeframe for various road-based hydrogen-powered vehicles to reach the total cost of ownership parity with an internal combustion engine and battery electric alternatives. It is important to note that the total cost of ownership refers to both purchasing and running costs. Longer time frames (indicated in yellow) suggest less suitability for hydrogen power as battery electric alternatives will become more established. Table 2 shows that HCVs (heavy commercial vehicles) and XHCVs (extra-heavy commercial vehicles) show the most potential for reaching cost competitiveness with ICEVs (internal combustion engine vehicles) and BEVs (battery electric vehicles). Furthermore, the table also shows good cost-effectiveness potential for most vehicle types except for small short-range PVs (passenger vehicles) and short-range busses.

Table 2: Total cost of ownership of H2 powered vehicles versus ICEVs and BEVs

Type of vehicle Usage Range Year of parity with ICEVs Year of parity with BEVs
Small PV Short range 200 km 2035 2050
Large PV (i.e. SUV) Long range 600 km 2030 2030
LCV Long range 650 km 2030 2025
MCV Short range 300 km 2025 2030
HCV Long range 500 km 2025 2020
XHCV Long range 600 km 2025 2020
Buss Short range 150 km 2025 2040
Buss Long range 450 km 2025 2025
Coach Long range 500 km 2025 2025

Source: Adapted from Hydrogen Council, 2020, p. 33-41


Hydrogen provides a game changing opportunity for the South African energy landscape. Its use in various applications, to replace fossil fuels, is quickly becoming a reality. Not only does the country possess many of the resources to become a world leader in green hydrogen production, but it already has a first mover advantage. Hydrogen provides clear opportunities for South Africa to become a major global energy exporter as well as build a new environmentally friendly and secure energy future for itself.

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Air Products South Africa (Pty) Ltd (2021). [Industrial price of South African Hydrogen].

Creamer, M. (2020). South Africa’s potential to export green hydrogen boosted Engineering news. Retrieved from https://www.engineeringnews.co.za/article/south-africas-potential-to-export-green-hydrogen-boosted-2020-05-26

Creamer, T. (2017). New study points to 90% renewables mix being least cost by 2050. Engineering news. Retrieved from https://www.engineeringnews.co.za/article/new-study-points-to-90-renewables-mix-being-least-cost-by-2050-2017-09-15

Enertrag (Producer). (2021). Green Hydrogen Export Opportunity for South Africa. [Presentation] 

Hydrogen Council. (2020). Path to hydrogen competitiveness: A cost perspective. Retrieved from 

Metcalfe, J., Burger, L., & Mackay, J. (2020). Unlocking South Africa’s hydrogen potential. Retrieved from 

Minerals Council South Africa. (2019). National Platinum Strategy. Retrieved from 

Patel, M. (2020). Green Hydrogen: A potential export commodity in a new global marketplace. Retrieved from 

Roos, T., & Wright, J. (2021). Powerfuels and Green Hydrogen. Retrieved from