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South Africa's green hydrogen hub: EU grants not nearly enough to get industry going, say chemical engineers

South Africa is poised to become a major player in the global energy transition, thanks to its vast renewable energy resources (sun and wind) and its plans for green hydrogen production.

Green hydrogen is produced through electrolysis, where renewable electricity splits water into hydrogen and oxygen. Unlike gray hydrogen, which is derived from fossil fuels, green hydrogen emits no greenhouse gases—only water vapor. It is seen as a good alternative to fossil fuels in sectors that are hard to electrify, such as heavy industry, aviation and long-haul transportation.

We are chemical engineers, with over five decades of combined experience in the petrochemical industry, who have researched the potential for green hydrogen commercialization in South Africa.

The European Union's recent pledge of €32 million (R628 million) in grants to support South Africa's green hydrogen industry shows that the country's potential is being recognized. However, our research shows that it is not enough. Getting a green hydrogen industry started will need more than this grant.

Green hydrogen production is expensive, costing between US$5 and US$8 (R89-R143) per kilogram—around five times the cost of hydrogen derived from fossil fuels.

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