South African Public Works and Infrastructure Deputy Minister, Sihle Zikalala, gave an update on the nine Strategic Integrated Projects (SIPs) Yesterday. The value of the investments required for all nine SIP’s is a Capex input of $17,2 billion.
The Green Hydrogen National Programme (GHNP) has already attracted projects with the capex value of over $45,9 billion with about 20% of the total investments at the bankable feasibility stage. According to Zikalala, most of these projects are at different stages of development ranging from prefeasibility to execution.
The projects include the Isondo Precious Metals (IPM) project in Johannesburg that will see the establishment of a fuel cell and electrolyser component manufacturing facility in Gauteng. Others include the Prieska Energy Cluster Green Ammonia production facility based in the Northern Cape, the Boegoes Bay Green Hydrogen Port Rail and Infrastructure Project that is being driven by the Northern Cape provincial government.
Zikalala indicated that South Africa only needed one percent of the country’s land area to support green hydrogen economy initiatives, creating jobs and improving the economy, with the added benefit that the land identified for these projects was unusable land for agriculture and human settlements.
‘The seventh administration, according to the Deputy Minister, “Has identified three priorities: driving inclusive growth and job creation, reducing poverty and tackling the high cost of living and building a capable, ethical and developmental state,”
He called on green hydrogen players to work with government in the creation of jobs in the green hydrogen economy. “We look up to you to take a lead in facilitating green hydrogen manufacturing capability in a manner that localises the production of upstream and downstream value-added products.
It was highlighted that South African could realize its potential to produce between six to 13 million tons of green hydrogen and derivatives per year by 2050. “We reiterate that South Africa as a green hydrogen investment destination still offers substantial additional investment opportunities including green shipping, green fertilizer production, electrolyser manufacturing, pipeline development, green field port developments’, stated Zikalala.
