Trade, Industry and Competition Minister Parks Tau says government views green hydrogen as a key catalyst that could advance South Africa’s reindustrialisation.

He was speaking at the Africa Green Hydrogen Summit, being held in Cape Town this week.

He added that hydrogen, together with sustainable aviation fuels, green chemicals and green shipping fuels, advanced manufacturing and new export industries would be key to realising the country’s industrialisation agenda objectives.

“These are the industries that will determine South Africa's competitiveness in the decades ahead.

“Our ambition is clear. We must export more value and less raw potential. We must move up the value chain. We must become producers, not merely providers of resources,” Tau says.

Further, he noted that through the Just Energy Transition Investment Plan programme management office at the Industrial Development Corporation, government had identified 24 strategic integrated projects, with several already through prefeasibility, and backed by German development finance institute Kreditanstalt für Wiederaufbau Development Bank.

“In August, investment company Climate Fund Managers closed the first R3-billion of the South Africa Green Hydrogen Fund, anchored by the European Commission through the Global Gateway commitment secured with the EU at last year's G20.

“That same Global Gateway has put a further R628-million in grants on the table directly, [with] R490-million to leverage hydrogen infrastructure investment, [and] projected to mobilise R10-billion more, and R138-million to help State-owned rail and logistics company Transnet green its own operations,” Tau adds.

Moreover, he pointed out that South Africa's industrial transition pathways pointed to “tens of thousands” of additional jobs and billions of rands in economic activity over the years ahead.

He also revealed that, through the Critical Infrastructure Programme Fund, the Department of Trade, Industry and Competition was supporting green hydrogen and green ammonia project developer Hive Hydrogen in developing South Africa’s lighthouse green hydrogen project, commonly known as the Coega green ammonia project, in the Eastern Cape.

“This funding announcement today is particularly significant as it practically puts in motion the decarbonisation pillar of our Industrial Development Strategy.

“Hive Hydrogen concludes financial due diligence unlocking R12.5-million of R25-million project development funding with a further funding application for R25-million to be submitted at financial close.

“This will not only benefit the region but will also contribute to the broader economic landscape of South Africa,” Tau concluded.