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Green hydrogen is a way to marry Africa’s mineral riches with our renewable energy endowment to decarbonise heavy industries, said President Cyril Ramaphosa South Africa has invested more than R1.49 billion (around $83.5 million) in the Hydrogen South Africa programme, while fostering regional and international collaborations to sketch a roadmap for this nascent sector that holds immense socio-economic promise for Africa. In his opening address at the Green Hydrogen Summit 2025 at the Century City Conference Centre in Cape Town, South Africa’s President Cyril Ramphosa said that Africa is perfectly placed given its renewable energy resources to be a major green hydrogen producer. “Green hydrogen is a way to marry Africa’s mineral riches with our renewable energy endowment to decarbonise heavy industries, to create jobs, to stimulate investment and to unlock inclusive growth across borders,” said Ramaphosa. Ramaphosa said that tapping into the potential of the hydrogen economy is a matter of urgency for Africa. “We have put the African voice at the centre of global energy discussions… hydrogen can be a new major export commodity for Africa.” Ramaphosa pointed out that the continent has borne the brunt of climate change and the devastation it causes in communities and economies. “To date, South Africa has invested more than R1.49 billion in our Hydrogen South Africa programme. “The recently launched Green Hydrogen Report is a consolidation of 35 underlying studies, providing the most comprehensive insight to date into the continent’s green hydrogen potential.” In terms of cross-border cooperation, the President pointed out that the Africa Green Hydrogen Alliance brings together a number of African nations, including Egypt, Kenya, Mauritania, Morocco, Namibia and South Africa. “More than 52 large-scale green hydrogen projects have been announced across the continent. “As demand for green hydrogen grows, so does demand for platinum group metals, sustaining and expanding our continent’s mining and refining industries. “The growing global demand for clean hydrogen as countries decarbonise their industries, transport, and energy systems presents unlimited opportunities for our continent,” said Ramaphosa. The President emphasised the need for collaboration between countries, saying the AU has a key role to play in the continent’s renewables hydrogen and clean energy ambitions. Expanding transmission infrastructure to support green hydrogen developments Ramaphosa highlighted the Coega ammonia and the Sasol aviation fuel projects as key examples of key developments in the development of the hydrogen sector in South Africa. The President also highlighted the importance of he expansion of the country’s transmission infrastructure, which he said was essential given the growth of renewable energy projects in South Africa. Earlier Western Cape Premier Alan Winde pointed out that if “we cannot get water and energy right” South Africa will not be able to get the requisite investment to help the green hydrogen sector grow. In his address, Minister of Electricity and Energy Kgosientsho Ramokgopa said hydrogen from renewables must be understood within the context of being a strategic enabler of Africa’s structural transformation and can help position the continent as a competitive industrial competitor. “… green steel to synthetic fuels… can be produced but will depend on policy frameworks, investment and technology transfers that serves the interests of the continent.” Ramokgopa said of developed to its full potential, the green hydrogen sector can help Africa wean itself off being a foreign donor destination. “We have to negotiate our space at the green agenda table… grounded in African realities.” He said the green hydrogen industry, for South Africa is not a conceptual debate as it is rooted in the country’s three national priorities which encompasses job creation, poverty reduction and building a capable state “Green hydrogen speaks to all these,” said Ramokgopa. Africa’s potential for green hydrogen production The South African Minister of Electricity and Energy said that in terms of clean energy, Africa is not starting from scratch “but we cannot wait” as Africa is the most promising green hydrogen zone. This is based on the fact that Africa has an abundance of renewable energy resources. He said South Africa’s ambition for the green hydrogen sector is “not aspirational, it is structured.” The Minister believes the country is primed for electrolyses manufacturing and to becoming a major hydrogen fuel producer. Hydrogen created from renewables sits at the nexus of energy manufacturing and transport logistics, the Minister reminded. Ramokgopa pointed out are more than 1,000 hydrogen projects currently planned around the world, with $570bn earmarked for investment. The hydrogen sector overall could support up to two million jobs globally by 2040, with research showing that it could provide for around 40,000 jobs in South Africa. “To move with urgency, agency and coherence, let the decisions we take today resonates beyond [the summit]. Let’s make sure Africa is a force that shapes the world’s… energy future,” said Ramokgopa. Announcement at green hydrogen summit Two major developments are also being announced today at the Summit that mark a significant acceleration of the country’s green hydrogen ambitions: The Public Investment Corporation (PIC), Development Bank of Southern Africa (DBSA), and Industrial Development Corporation (IDC) have committed R656 million (~$37 million) to the SA-H2 Fund, a blended finance facility advancing South Africa’s energy transition and green hydrogen economy. SA-H2 has made its first investment, committing $20 million in development funding to the Hive Coega Green Ammonia Project – South Africa’s first industrial-scale green ammonia plant, targeting 1 million tonnes of annual production for export, avoiding 2.6 million tCO2e each year, and creating over 20,000 jobs. |
