South Africa in talks with investors on green hydrogen projects

South Africa’s government is in talks with potential investors in green hydrogen projects, with Germany having identified the country as a key source of the fuel, Trade, Industry and Competition Minister Ebrahim Patel said.

President Cyril Ramaphosa on Thursday announced that the government has plans that support the development of a pipeline of green-hydrogen projects worth about 270 billion rand ($17.8 billion) over the next decade. The fuel is made using renewable energy.

“Green hydrogen has been recognized by the president as a big win for South Africa,” Patel said in a phone interview. “We are in discussions with a number of private companies about this and also, what is very positive, is that Germany has identified South Africa as a primary source of green hydrogen.”

The government plans to develop a domestic market for hydrogen, with the excess to be exported, the minister said. “We are hoping that the market for hydrogen will go further than just Germany,” he said.