UK to back SA's green
hydrogen plans with grant funding
News24 – 24 November 2022
President Cyril Ramaphosa shakes hands with King Charles III and Camilla, Queen Consort of the UK during his welcome ceremony at Horse Guards.
Leon Neal/Getty Images
- The UK will support South Africa's green hydrogen plans with grant-funded technical assistance.
- Furthermore, a $5 billion investment in developing a green ammonia plant in South Africa is expected to create local jobs.
- President Cyril Ramaphosa is on a state visit to the UK this week.
The UK government intends to support South Africa's plans to develop a green hydrogen sector with grant-funded technical assistance.
The announcement was issued on Tuesday morning as President Cyril Ramaphosa embarked on a state visit to the UK this week.
The grant funding – a figure of which has not yet been disclosed – is part of the UK's contribution to the Just Energy Transition Partnership.
At COP27, Ramaphosa shared that he had asked the International Partners Group that initially pledged $8.5 billion to aid South Africa's transition, and which includes the UK, to improve the grant funding component of their pledge.
Green hydrogen – which is produced using renewable electricity and, therefore, less carbon intensive than traditional fuel sources – is one of the green industries South Africa seeks to develop through the JETP. Other sectors critical to decarbonising the South African economy that will benefit from the JETP are the electricity sector and transport, specifically through the development of electric vehicles.
The initiative on green hydrogen is linked to the UK's Partnering for Accelerated Climate Transitions (UK PACT) programme. The UK PACT has already been involved in knowledge sharing for the development of South Africa's Hydrogen Society Roadmap, released earlier this year. The programme has also funded studies on the employment opportunities and skills needed for South Africa's green hydrogen economy.
The partnership between the two countries involves the continuous exchange of knowledge, with the UK sharing its experiences and lessons in developing the Tees Valley Hydrogen Hub. South Africa also wants to develop its own hydrogen valley. For this reason, Minister of Higher Education, Science and Innovation Blade Nzimande intends to visit Teesside to learn about the regional development opportunities enabled through a green hydrogen sector.
There will also be academic cooperation between the UK's Teesside University and Stellenbosch University in South Africa, allowing for the sharing and exchanging of best practices. The UK's Teesside University had been instrumental in building a regional hydrogen economy.
The UK government also flagged an upcoming $5 billion investment by a UK company – Hive Energy – to build a green ammonia plant in South Africa. The plant will create local jobs while presenting an economic opportunity for the UK and other firms involved in the project.
Foreign Secretary James Cleverly said that the two countries would also announce the creation of a Partnership on Minerals for Future Clean Energy Technologies, seeing as the southern African region's countries are leading producers of minerals for clean technologies. For example, these include platinum group metals, used for hydrogen production; and vanadium and manganese, used for battery storage. The partnership will focus on the "responsible" exploration, production and processing of these minerals.