Deputy Minister Sihle Zikalala gives update on Hydrogen Economy Strategic Projects

Public Works and Infrastructure Deputy Minister Sihle Zikalala says since the gazetting of nine Strategic Integrated Projects (SIPs) by Infrastructure South Africa (ISA), an entity of the department in 2022, at a CAPEX value of R300 billion, the Green Hydrogen National Programme (GHNP) has attracted projects with the CAPEX value of over R800 billion with about 20% of the total investments at the bankable feasibility stage.

Speaking at the Green Hydrogen Devac conference in Sandton, Johannesburg today, the Deputy Minister said most of these projects are at different stages of development ranging from prefeasibility to execution. These projects include the Isondo Precious Metals (IPM) in Johannesburg which entails a fuel cell and electrolyser component manufacturing facility in Gauteng, the Prieska Energy Cluster Green Ammonia Production facility in the Northern Cape, Boegoes Bay Green Hydrogen Port Rail and Infrastructure Project driven by the Northern Cape Provincial Government, the Hive Green Ammonia export project in the Eastern Cape, Arcelor Mittal South Africa (AMSA) Saldanha Green Steel Project in the Western Cape  and the Sasolburg 60MW H2 production in Gauteng.

Zikalala said South Africa only needed 1% of the country’s land area to support Green Hydrogen economy initiatives, creating jobs and improving the economy. He said this was unusable land for Agriculture and Human Settlements.  He said there was a further 5.2MHa available in the Renewable Energy Development Zones.

The Deputy Minster said ISA acted as one of the government enablers for the South African Green Hydrogen opportunity.  He said by gazetting the GHNP as a SIP, ISA enabled projects to be placed on an expedited path to development with prescribed and shortened timeframes for various project approvals and authorisations.

‘The Seventh Administration has identified three priorities: Driving inclusive growth and job creation, Reducing poverty and tackling the high cost of living and Building a capable, ethical and developmental state’, said the Deputy Minister.

He called on the Green Hydrogen players to work with Government in creation of jobs in the GH economy.  ‘We look up to you to take a lead in facilitating green hydrogen manufacturing capability in a manner that localises the production of upstream and downstream value-added products. Working together, South Africa can realise its potential to produce 6 to 13 million tons of green hydrogen and derivatives per year by 2050.  We reiterate that South Africa as a green hydrogen investment destination still offers substantial additional investment opportunities including green shipping, green fertiliser production, electrolyser manufacturing, pipeline development, green field port developments’, concluded Deputy Minister Zikalala.

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