South African President Addresses 2nd Green Hydrogen Summit, Highlights Its Importance for the Nation

South African President Cyril Ramaphosa delivered a significant address at the 2nd South African Green Hydrogen Summit, emphasizing the vital role that green hydrogen plays in the country’s development and global energy transition.

The President, unable to attend in person, conveyed his pleasure in addressing the summit, recognizing its importance for South Africa. He emphasized the nation’s goal to establish itself as a major global player in the green hydrogen industry, which has been designated as a key strategic sector for attracting foreign and domestic investments.

South Africa’s Investment Strategy, approved earlier this year, identifies green hydrogen as a pivotal sector expected to spur economic growth, create jobs, and support vulnerable workers, communities, and small businesses. It has been estimated that by 2050, the hydrogen economy could contribute up to 3.6 percent of the nation’s GDP and generate approximately 370,000 jobs.

President Ramaphosa stressed the urgency of harnessing the potential of the green hydrogen economy. Noting that 64 countries, accounting for 89 percent of global emissions, have committed to net-zero targets by 2050, he highlighted the anticipated sevenfold increase in global green hydrogen demand by 2050. To limit global warming to less than 1.5 degrees, green hydrogen will need to constitute 10 to 20 percent of the global energy mix.

South Africa has also committed to ambitious emission reduction targets, with estimates suggesting that green hydrogen could reduce 10 to 15 percent of domestic emissions, contributing to the nation’s long-term energy security.

The President acknowledged the collaborative efforts through the African Green Hydrogen Alliance, which includes several African countries, aiming to jointly call for technical support, funding, and market access from international public and private sector partners. Last year’s inaugural summit laid a strong policy foundation, while this year’s focus is on project development and technological advancements.

To unlock Africa’s green hydrogen potential, President Ramaphosa stressed the need for close cooperation between public, private, and financial partners, which will enable mass-scale demand for green hydrogen, and cooperation on production, storage, and distribution infrastructure.

Investment in green hydrogen projects will require innovative financing structures sourced from multiple stakeholders. In June 2023, South Africa initiated the SA-H2 Fund, designed to secure $1 billion in funding from various sources, locally and globally, to promote the green hydrogen sector and circular economy.

The President also highlighted key developments, including a Joint Declaration of Intent with the German government, an MOU with the Netherlands, and a forthcoming Memorandum of Cooperation between Sasol, Anglo American, and BMW in the green hydrogen mobility sector.

In conclusion, President Ramaphosa expressed gratitude to the partners and sponsors who made the summit possible and extended his well wishes to the business and government delegations, emphasizing their collective effort to shape Africa’s green hydrogen agenda for the benefit of economies and societies now and into the future.