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SA green hydrogen economy goes commercial
23 Sep 2024
When making a case for the Just Energy Transition Investment Plan (JET-IP), the Ramaphosa administration listed green hydrogen is listed as one of the three pillars, alongside a shift to renewables in the electricity mix, and electric expanding the nation’s electric vehicle fleet. Originally, the JET-IP allocated R320bn to developing the green hydrogen sector of the total R1.5trn it identified as the JET-IP funding requirements. HySA Systems, a hydrogen fuel cell company spun out of UWC research, is now seeking funding to commercialise its innovative solutions.
Source: DALL-E 3
Dr Wafeeq Davids, representing HySA Systems at the Stellenbosch University LaunchLab demo day, highlighted the company's value proposition in the green hydrogen economy.
“Diesel forklifts, while powerful, come with high maintenance costs, create a toxic environment, and are unsuitable for indoor use,” he explained.
“On the other hand, battery-powered forklifts suffer from long charging times, limited power during shifts, and the challenges associated with deep charging.”
HySA Systems' hydrogen fuel cell technology offers a compelling solution to these challenges.
The magic is in the metal hydride hydrogen storage that builds on the extensive research coming out of the university.
Solid-state storage is potentially cheaper and safer than the conventional compressed gas solution and holds promise for wider adoption.
"We increase productivity mainly because our fuel cell can operate at maximum power that is fast refuelling and more valuable storage," Davids explained about the advantages over standard battery electric applications.
Market potential
The company's technology also reduces operational expenses, increases workforce productivity, and offers a sustainable and recyclable approach.
The global hydrogen fuel cell market is projected to reach $125bn by 2030, with a significant portion dedicated to forklifts and industrial applications.
HySA Systems is strategically positioned to capitalise on this growth, targeting industries seeking efficient, sustainable, and reliable solutions.
"Our refuelling cost for one kilogram of hydrogen is around R25 and the competitive prices are around about R50 per kilogram of hydrogen," says Davids.
This advantage translates into substantial savings for businesses with electricity prices hovering around R3/kWh (incl. VAT), making HySA Systems' solutions even more attractive.
National development
Since Infrastructure South Africa gazetted nine strategic integrated projects (SIPs), the Green Hydrogen National Programme (GHNP) has attracted projects worth over R800 billion, with 20% at the bankable feasibility stage.
"South Africa only needed one percent of the country’s land area to support green hydrogen economy initiatives, creating jobs and improving the economy," said deputy minister of Public Works and Infrastructure Sihle Zikalala at the Green Hydrogen Devac conference in Sandton.
“We reiterate that South Africa as a green hydrogen investment destination still offers substantial additional investment opportunities including green shipping, green fertiliser production, electrolyser manufacturing, pipeline development, green field port developments’, said Zikalala.
Investment boost
South Africa is set to receive approximately R628m from the European Union to support its green hydrogen initiatives.
This was revealed in a briefing by Energy Minister Kgosientsho Ramokgopa, Trade Minister Parks Tau, and EU Commissioner Kadri Simson.
“The first grant, close to R100m, will help implement Transnet's strategy. Nearly half a billion Rand will fund infrastructure development in the green hydrogen value chain,” said Simson.
“These grants aim to add value to the local economy and advance South Africa’s strategic goals.”
