South Africa is ramping up its efforts to become a global leader in green hydrogen, attracting significant foreign investment as part of its ambitious renewable energy initiatives. This momentum is underscored by the recent visit of South Africa's Minister of Electricity and Energy, Dr. Kgosientsho Ramokgopa, to Japan from December 9 to 11, where he focused on enhancing partnerships with leading Japanese companies and financial institutions.
During this visit, Minister Ramokgopa announced a groundbreaking project pipeline aimed at developing green hydrogen projects worth $17.8 billion over the next decade. This initiative is not just about boosting South Africa's energy capacity; it is also about positioning the nation as a major supplier of hydrogen and ammonia to meet the global demand for cleaner energy alternatives.
Japan's interest is particularly pivotal, as the country is the world's third-largest economy and has long been at the forefront of sustainable energy innovations. Major Japanese corporations like Mitsui, IHI, ITOCHU, MHI, and JERA are key players globally and have shown considerable interest in South Africa's green hydrogen sector.
South Africa's renewable energy resources, particularly wind and solar, offer fertile ground for hydrogen production, making it well-suited as a competitive player on the global hydrogen market. Noteworthy flagship projects include the construction of the Boegoebaai hydrogen production hub, which will be supported by extensive infrastructure developments, including new ports and railways. The Coega Green Ammonia hub, spearheaded by Hive Energy and BuiltAfrica, will produce green ammonia using 372 MW from Genesis Eco-Energy’s wind farms, contributing significantly to the Eastern Cape's economy.
Minister Ramokgopa's visit reinforces South Africa's commitment to internationally collaborative energy solutions. It sets the stage for upcoming discussions at the Invest in African Energy (IAE) Forum, scheduled for May 2025, which will bring global stakeholders together to explore investment opportunities across Africa.
Investment opportunities within South Africa's renewable sector were also represented through the announcement of the Preferred Bidders under the 7th Bid Window of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and the 2nd Bid Window of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP). Among the 16 selected projects, eight solar PV initiatives were awarded Preferred Bidder status, totaling 1,760 MW and representing investments of R31.4 billion. These projects are expected to generate thousands of jobs and bolster local economies.
Specifically, the selected solar projects include:
- Highveld Solar Consortium (Mpumalanga): 240 MW
- Palladium Solar 1 Consortium (Limpopo): 240 MW
- Copper Solar 1 Consortium (Limpopo): 240 MW
- Vanadium Solar 1 Consortium (Limpopo): 150 MW
- Middlepunt Solar PV (Free State): 240 MW
- Mercury Solar PV 2 (Free State): 240 MW
- Onderstepoort Solar 1 Consortium (North West): 220 MW
- Onderstepoort Solar 2 Consortium (North West): 190 MW
These initiatives promise significant socio-economic impacts, including approximately 6,971 job opportunities and R7.8 billion allocated to local content during construction, along with R3 billion earmarked for Black Enterprise Procurement.
Meanwhile, the BESIPPPP Bid Window 2 has identified eight battery storage projects with a total contracted capacity of 615 MW and investments totaling R12.8 billion, focusing on improving grid stability across the North West, Gauteng, and Free State provinces.
The importance of transitioning away from fossil fuels has also been highlighted through recent legal developments. On December 4, 2024, the High Court in Pretoria delivered a landmark ruling against the South African government's plans to add more coal-fired power stations. The court found the government's Integrated Resource Plan inconsistent with the Constitution, emphasizing the need to protect future generations from the harmful effects of coal power.
Civil society groups argued the government’s plans disregarded children's rights to a healthy environment and clean air. The court's decision marks a significant victory for environmental advocates and reinforces the need to focus on sustainable practices and energy sources.
The ruling aligns with South Africa's commitment to cut greenhouse gas emissions, having pledged to reach net-zero carbon by 2050 as part of its obligations under the Paris Agreement. The court's emphasis on considering long-term ecological impacts over immediate gains echoes the sentiments expressed by advocacy groups pushing for the country's energy transition.
Overall, the combination of significant investment initiatives, strategic international partnerships, and landmark judicial rulings signify South Africa's commitment to shaping its energy future within the framework of sustainability and equity. With promising projects underway and the eyes of the world increasingly focused on renewable solutions, South Africa aims to establish itself as a leader in the global energy transition.
