- South Africa hopes to attract $1 billion in funding to implement its green hydrogen commercialisation strategy.
- One of the drawbacks to the technology is that it is more costly to produce green hydrogen than fossil fuel sources like coal.
South Africa has approved the implementation of its Green Hydrogen Commercialisation Strategy (GHCS). The country now hopes to become a major producer and exporter of green hydrogen. The Minister in the Presidency, Khumbudzo Ntshavheni, disclosed that Cabinet had approved the plan on Thursday to SA News.
The generation of green hydrogen is a new technological innovation that sees hydrogen molecules taken out of water using a process called electrolysis. The hydrogen is then made into a burnable gas which can be used to generate electricity. Unlike coal used in power plants, this hydrogen produces no carbon dioxide, which means it won’t contribute to global warming and climate change.
Thus, the marketing name of “green” hydrogen. However, some drawbacks to the technology are that it costs more money and energy to produce green hydrogen than fossil fuel sources like coal, and it is less safe, with hydrogen being a highly flammable and volatile element if treated carelessly.
The minister added, “The government has identified possible funding for green hydrogen projects, and the draft Green Paper received extensive feedback from stakeholders. The government hopes to leverage green hydrogen as an additional renewable energy source.”
According to Ntshavheni, South Africa hopes to attract $1 billion in funding to implement its green hydrogen generation strategy, which will pay off for the country in the long term. By 2050, a time few of us can fathom, South Africa’s green hydrogen economy could generate 370,000 jobs and increase the country’s GDP by 3.6 per cent, she explained.