Public-private partnerships are required to help steer green hydrogen energy start-ups away from the “valley of death” – the critical stage of a start-up yet to generate revenues – and to create “mountains of opportunity”, Dr Sanjiv Malhotra, a veteran of the global battery and fuel cell sectors and seasoned adviser to the US government on energy-related policy has stressed.
He was participating in a fireside chat with EE Business Intelligence MD Chris Yelland, during a webinar titled ‘Positioning South Africa for the Green Economy – Execution Strategies’ and co-hosted by the Department of Trade, Industry and Competition and Isondo Precious Metals on July 16.
Malhotra talked about his experience as an entrepreneur in the new energy trajectory and the important role that the youth of today will play in the emerging new energy order.
He reflected on his learnings from his time in the public sector in Washington DC, where he was the inaugural director of the Clean Energy Investment Center under the Barack Obama-led administration and also highlighted some pillars of innovation that are critical in accelerating new emerging industries.
Malhotra said research and development institutions and universities should be the hub for innovation and intellectual property (IP) generation.
Another pillar is start-ups that bring these innovations to life, he noted.
Malhotra cited chemicals company Sasol as an important example of a “big brother/sister” that provides critical support in taking the technology developed by a start-up to the market, and in creating the eco-systems for the technology to thrive.
Automotive companies are also a good example in this regard, he highlighted.
Lastly, Malhotra talked about the public sector and the importance of accessible funding and making available the capability present in publicly funding research institutions and laboratories to foster innovation.
He also mentioned that, in the US, he has recommended that an office that is dedicated to scale-up be established by the new administration. This could also be developed in South Africa, he suggested.
Malhotra emphasised that the pillars must work together in some form of private-public partnership (PPP). He said this was a crucial lesson for South Africa, as PPPs would prevent start-ups from failing and would create opportunities.
Yelland asked Malhotra how he sees the US and South Africa working together in this new green energy economy.
Malhotra highlighted key linkages that he thinks could be exploited between the countries, including technology partnerships, IP licensing, and in particular, scale-up.
“The time is extremely ripe right now, to look at scale-up. That’s a lesson that hydrogen and fuel cells should take from batteries. This is the time to go in for the kill, scale up and get into production. We need to look beyond research and development and put the technologies that are ready . . . into production,” he said.
To support scale-up, the manufacturing ecosystem and the complete fully integrated value chain from mine to final product must be developed between the countries when it comes to green hydrogen and fuel cells.
Isondo is currently setting up a manufacturing plant at the OR Tambo Special Economic Zone, in Gauteng. The plant will manufacture the key platinum group metal- (PGM-) containing components that enable the green hydrogen economy, and this serves as an example of this.
Malhotra also said it was important for the South African government to attract finance and venture capital from the US.
Malhotra was asked how South Africa could leverage its natural endowments of solar, wind and PGMs to capitalise on green hydrogen economy opportunities.
He stated that the hydrogen industry should take a leaf out of the battery playbook and create ecosystems and integrated supply chains. A focus on one or two markets would be key, he noted.
“South Africa with its platinum, solar and wind at its disposable has the best shot of making this [the green hydrogen economy] happen and the government needs to support it, as [has] happened in the US,” Malhotra said.