South Africa’s potential to lead green hydrogen production could be pivotal in securing a sustainable and economically viable energy future but it is not without significant challenges.
This was the view of industry experts speaking on a panel at the second South African National Energy Development Institute annual energy conference in Midrand, Johannesburg, last week where they presented a case study illustrating how green hydrogen could play a pivotal role in South Africa’s decarbonisation journey.
“Hydrogen presents immense opportunities for South Africa and other African countries, especially in industries like steel and cement, which are challenging to decarbonise,” said Darija Susac, Research and Technology Development Manager for Fuel Cells and Electrolysers at the University of Cape Town, HySA Catalysis. It could also decarbonise the mobility sector, particularly in heavy-duty trucks and buses, Susac added.
However, there are significant challenges. Developing green hydrogen infrastructure requires substantial investment, regulatory clarity and strategic partnerships, the panel said. The cost of green hydrogen production often emphasises electrolysis but two crucial and less-discussed factors – transportation and storage –influence overall costs, said Professor Dimitri Bessarobov, Director at HySA Infrastructure Competence Centre.
“The direct factors influencing hydrogen production costs can be summarised into three key elements. First is the capacity factor, which measures the effective operational time of electrolysis. Ideally, electrolysis should run continuously, 24 hours a day, but when linked with renewable energy sources, it often operates for only a few hours a day,” said Bessarobov.
“The second factor is the cost of capital, which must be repaid. However, the main determinant of cost is the price of renewable electricity. If we can reduce this to US$0,01 (R0,18) per kilowatt-hour, the production cost of on-site green hydrogen will be on par with steam reforming methods.”
Investment in innovation is crucial to reduce hydrogen production costs, said Susac. “We need to fast-track promising technologies into frontline hydrogen production. Currently, green hydrogen production is costly, especially when using proton exchange membrane electrolysis, which is four to five times more expensive than alkaline electrolysis.” She also noted the need for advancements in catalysts and material recycling to bring costs down.
Susac said innovation in the catalyst, materials and ways of recycling the materials will decrease the cost.
Despite the high costs associated with green hydrogen production, its use as a clean energy source cannot be ignored, said Professor Lwazi Ngubevana, Eskom RT&D Senior Manager: Technology Strategy and Research Management.
Green hydrogen can address some Sustainable Development Goals (SDGs) such as SDG 13 (“urgent action to combat climate change and its impacts”), said Ngubevana. “If we start using hydrogen as an energy vector, we will reduce our CO2 emissions. I think, if we do it right, it can also address SDG 9, which speaks to sustainable industrialisation.”
Green hydrogen is clean energy, Ngubevana pointed out. “The fact of the matter is that the business case for green hydrogen is still not very strong but I think it is an opportunity for us to provide clean and, hopefully, affordable energy.”
