Hydrogen Valley, South Africa

26th November 2021

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 at 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 Impact, the South African National Energy Development Institute (Sanedi) and clean energy solutions provider Bambili Energy.

Project Description
A Hydrogen Valley aggregates multiple demand segments along key hydrogen production routes within a specific geographic region.

A feasibility study completed on the proposed Hydrogen Valley project, published on October 8, aims to accurately define the potential benefits of a progressive transition to using hydrogen along the N1/N3 corridor.

Three catalytic green hydrogen hubs have been identified in the Hydrogen Valley – Johannesburg, Durban/Richards Bay, and Mogalakwena – that will host pilot projects and contribute to the launch of the hydrogen economy. Hydrogen demand in these hubs could reach up to 185 000 t of hydrogen by 2030.

In Johannesburg, hydrogen demand could reach up to 74 000 t by 2030 in a high uptake scenario. Demand is primarily driven by the industrial sector, with large hydrogen uptake in Sasolburg’s chemicals, iron and steel sectors.

There is also significant demand from heavy-duty trucks servicing the N3 freight corridor, and public buses and buildings within the Johannesburg/Durban metropoles.

In Durban, hydrogen demand could reach 70 000 t by 2030 in a high uptake scenario. Demand is primarily driven by the mobility sector, with the growth of fuel cell-driven heavy- and medium-duty trucks along the N3 freight corridor as they reach cost parity with diesel trucks. The ports of Durban and Richards Bay present opportunities for hydrogen in port operational vehicles, such as forklifts and cold ironing from fuel cells, as well as marine bunkering in the long-term. Some industrial demand, such as pulp and paper factories, and public building, is also foreseen.

Mogalakwena/Limpopo is positioned as the mining hub, with 90% of its nearly 40 000 t of hydrogen driven by possible demand from mining trucks across the region’s mines. The flagship Limpopo Science and Technology Park will also provide demand for fuel cells to power its building stock.

For all hubs, solar photovoltaic energy has been recommended for green hydrogen production, with some onshore wind as the cost-optimal supply mix.

Potential Job Creation
The project could create about 14 000 to 30 000 jobs a year.

Capital Expenditure
Not stated.

Planned Start/End Date
Not stated.

Latest Developments
Key actions for the next stage of the project include:

  • launching the feasibility study in line with the public dissemination plan;selecting suitable pilot plans;
  • identifying project sponsors and coalitions for each pilot plan;
  • launching the tender process for the detailed feasibility studies of the pilot projects once sponsorship has been secured; and
  • starting engagement with regulatory authorities for near-term priority policy and regulatory enablers.


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

Contact Details for Project Information
Anglo American, Nevashnee Naicker, tel +27 11 638 2592 or email nevashnee.naicker@angloamerican.com.
DSI, tel +12843 6300.
ENGIE Impact, tel +33 1 44 22 66 29 or email ir@engie.com.
SANEDI, tel +27 12 843 6300.
Bambili Energy, tel +27 11 513 3587 or emailinfo@bambilienergy.com.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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