Rising oil prices and the ongoing Russia-Ukraine war have forced many countries around the world to seriously consider transitioning away from fossil fuels at a much faster rate.
One form of hydrogen that is growing in prominence is green hydrogen, a byproduct that is produced from water electrolysis using energy from renewable sources such as solar, wind, and hydropower, said Nabagala. According to the recently launched South African Hydrogen Valley Feasibility Study Report, the average cost of green hydrogen is forecast to be around $4 per kg by 2030 along the Platinum Valley corridor, representing a green premium of between $2-2.5 per kg above that of gray hydrogen.
Furthermore, have abundant land in proximity to oceans, and apart from producing green hydrogen, just 1%of South Africa’s land area could produce 10 megatons of the fuel, providing the by-product of desalinated water at less than 1c per kilogram. This would help water-stressed communities achieve water security, she said.
This project has also been earmarked as a Strategic Integrated Project in the South African National Development Plan .