The hydrogen economy is one of the most promising renewable energy technologies, with the potential to help address climate change challenges while also creating jobs along the hydrogen economy value chains. According to a recent Masdar-ADSW report, the African hydrogen industry could generate 1.9-3.7 million jobs and contribute $60 billion to GDP by 2050. With its natural and technological resources, South Africa has the potential to become a global leader in green hydrogen production. However, little attention is being paid to the hydrogen economy’s skill needs and the growing green hydrogen skills gap. As a result, it is critical that we prioritise the training and development of a green hydrogen workforce in order to be ready when the promise of this renewable energy technology arrives on our doorstep.
The first step toward expanding South Africa’s hydrogen economy is to invest in the development and training of a hydrogen-ready workforce. This will prevent critical skills from being imported from other countries. The Chemical Industries Education and Training Authority (CHIETA) has identified 17 future skills needed for success in the hydrogen economy and developed a roadmap for the “Top Ten Hydrogen Skills.” It also intends to train 1,000 chemical engineers to become hydrogen systems engineers by 2025.
The development of hydrogen infrastructure is the second most important driver of growth. This entails progressing hydrogen projects from pre-feasibility and feasibility to actual investment. Hydrogen initiatives in South Africa must be implemented as soon as possible. The slow pace of completing hydrogen infrastructure projects could significantly stifle South Africa’s hydrogen economy’s growth.
Growing the hydrogen economy requires a comprehensive set of legislation, policies, and regulations to facilitate a more enabling environment. Perhaps a “Minister of Hydrogen” could take the lead in developing an enabling environment and the legislation that goes with it. What we need are transformative regulations that reduce the risks associated with all aspects of the hydrogen economy, not crippling regulations. South Africa requires a well-coordinated national hydrogen policy as well as a standardised hydrogen certification framework. The third key driver of growth is the development of enabling legislation, policies, and regulations for effective risk mitigation.
The establishment of government support schemes would be the fourth driver of rapid and significant job creation in the hydrogen economy. The South African government should consider establishing a Hydrogen Innovation Fund and Hydrogen Bank, as well as a dedicated support fund for hydrogen-related small, medium, and micro enterprises (SMMEs). Countries such as Morocco have seen a significant share of hydrogen production—nearly 30%—attributed to local SMMEs. Government subsidies for hydrogen are not new, and examples can be found all over the world. In the context of South Africa, deliberate and intentional government support would ensure that hydrogen opportunities are localised.
The fifth major driver of hydrogen growth is the need for improved coordination and cross-sector collaboration. The private sector cannot play the role of coordination because its primary goal is profit maximisation. The government should be responsible for coordinating all stakeholders in the hydrogen economy. As an enabler of growth and development, the government should facilitate structured collaborative agreements between the leading sectors of the economy involved in the hydrogen value chain, namely the energy, chemicals, transportation, agriculture, and mining sectors.
Sector education and training authorities (SETAs) have been leading the way in terms of skills development and training through collaborative agreements. Agreements are in the works between the Chemical Industries Education and Training Authority (CHIETA) and the Energy and Water Sector Education and Training Authority (EWSETA), as well as between CHIETA and the Transport Education and Training Authority (TETA).
In addition to these five growth drivers, there is a need to reduce the carbon footprint of hydrogen.
