Germany and South Africa have agreed to collaborate on green hydrogen initiatives as part of Europe’s efforts to leverage Africa’s vast renewable resources in achieving their net zero goals by 2050.
The partnership entails Germany supporting the development of markets, facilitating imports, and connecting producers with technology partners in South Africa. The objective is to foster business opportunities between developers and off-takers in both countries.
Green hydrogen, produced by using renewable energy to split water into hydrogen and oxygen, holds significant potential as a fuel source across various industries, including transport, petrochemicals, and steel.
European nations are increasingly turning to Africa to secure future green hydrogen supplies, with substantial investments made in countries such as Namibia, Morocco, Egypt, and South Africa.
South Africa, being the continent’s most advanced economy and a significant greenhouse gas emitter, has made green hydrogen a crucial component of its decarbonization strategy.
President Cyril Ramaphosa has highlighted the need for substantial investment, estimated at 319 billion rands ($17.28 billion), to kick-start the industry.
Although an investment target was not specified in the recent agreement, South Africa has already received $700 billion out of the $8.5 billion pledged by countries like France, Germany, the United States, the United Kingdom, and the European Union.