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Hydrogen Valley, South Africa – update

Image depicting green hydrogen from renewable sources

15th April 2022

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Hydrogen Valley.

Location
The proposed hydrogen valley will extend about 835 km from Anglo American’s Mogalakwena platinum group metals (PGMs) mine near Mokopane, in South Africa’s Limpopo province, along the industrial and commercial corridor to Johannesburg, in Gauteng, and to the south coast of Durban, in KwaZulu-Natal.

Project Owner/s
The project is a collaboration between Anglo American and South Africa’s Department of Science and Innovation (DSI). The collaboration includes energy and services company ENGIE, the South African National Development Institute (Sanedi) and clean energy solutions provider Bambili Energy.

Project Description
Anglo American announced a collaboration agreement in March 2021 to complete a feasibility study to develop a “hydrogen valley” anchored in the platinum group metals-rich Bushveld geological region.

The study identified tangible opportunities to build hydrogen hubs and explore the potential for green hydrogen production and supply at scale.

The project’s objective was to identify up to three hydrogen hub zones – with a high concentration of hydrogen demand and access to green hydrogen – which will act as a hydrogen ecosystem. Hubs identified include the Johannesburg hub, the Mokgalakwena/Limpopo hub and the Durban/Richards Bay hub.

The study identified nine catalytic projects in the mobility, industrial and buildings sectors across the three hubs to start the hydrogen economy in the valley.

The regional PGMs industry will be central to such a hydrogen valley, with PGMs playing an important role in polymer electrolyte membrane electrolysis used to produce hydrogen at scale and in fuel cells.

Potential Job Creation
The implementation of the South African Hydrogen Valley corridor could potentially contribute $3.9-billion to $8.8-billion to gross domestic product (direct and indirect contributions) by 2050, and create 14 000 to about 30 000 direct and indirect jobs a year by 2030. In terms of platinum contribution, the study has projected a contribution of up to $70-million to the platinum industry in South Africa by 2030.

Capital Expenditure
The identified nine catalytic projects could cost about $1.2-billion to implement.

Planned Start/End Date
Not stated.

Latest Developments
Engagements with key stakeholders have been initiated to mobilise resources through partnerships and create an ecosystem where investment decisions can be made to scale up the identified nine catalytic projects.

Further, activities with key stakeholders on the hydrogen valley are at an advanced stage. Engagements are aimed at establishing strategic partnerships that will promote the manufacturing of locally developed intellectual property across the Hydrogen Valley corridor and the export of green hydrogen and ammonia, as well as the sale thereof to the local and international markets, based on the nine identified catalytic projects.

Key Contracts, Suppliers and Consultants
ENGIE Impact (feasibility study).

Contact Details for Project Information
Anglo American, Nevashnee Naicker, +27 11 638 2592 or email nevashnee.naicker@angloamerican.com.
DSI, Veronica Mohapeloa, email veronica.mohapeloa@dst.gov.za.
Engie, tel +33 6 88 29 72 37 or email  engie@volanov.com.
Bambili Energy, tel +27 11 513 3587 or email info@bambilienergy.com.

Edited by Creamer Media Reporter

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