South Africa has the potential to be a global leader in green hydrogen production due to its natural and technological endowments.
The hydrogen economy can help to address climate change by reducing greenhouse gas emissions, while simultaneously creating employment.
According to a recent report by Masdar-ADSW, the African hydrogen industry could create about 1.9- to 3.7-million jobs and boost GDP by $60bn (about R1.1-trillion) by 2050.
However, little attention is being paid to the skills needs of the hydrogen economy and the widening green hydrogen skills gap. To drive growth, it is therefore imperative that we prioritise the training and development of such a workforce so we are ready when this renewable energy technology reaches our doorstep. This will also ensure essential skills are not imported from abroad.
The Chemical Industries Education and Training Authority (CHIETA) has identified 17 future skills for success in the hydrogen economy and developed a Top Ten Skills in Hydrogen road map. It has also embarked on a plan to upskill 1,000 chemical engineers to become hydrogen systems engineers by 2025.
Another key driver of growth is hydrogen infrastructure development. This entails shifting pre-feasibility and feasibility hydrogen projects to investment.
Hydrogen initiatives in South Africa need swift execution. The slow pace of hydrogen infrastructure projects could significantly stifle the growth of the country’s hydrogen economy.
Growing it requires comprehensive policies and regulations to facilitate a more enabling environment.
Perhaps a “minister of hydrogen” could have led the development of an enabling environment and its accompanying legislation. What we need are not debilitating regulations, but transformative ones that mitigate the risks associated with all aspects of the hydrogen economy.
These drivers of growth would lead to a job-creating hydrogen economy in South Africa within the next few years
South Africa needs a coherent national hydrogen policy and a standardised hydrogen certifications framework. The development of enabling legislation, policies and regulations for effective risk mitigation constitutes the third key driver of growth.
The fourth, for swift and substantial job-creation growth, would be the establishment of government support schemes. The government should establish a hydrogen innovation fund, hydrogen bank and dedicated support fund for hydrogen-related SMMEs.
Countries such as Morocco have witnessed a significant share of hydrogen production (almost 30%) being attributed to local SMMEs. Government support schemes for hydrogen are not new and examples can be found in other parts of the world. In the context of South Africa, deliberate and intentional government support would ensure the localisation of hydrogen opportunities.
The fifth significant driver of hydrogen’s growth is better co-ordination and more cross-sector collaboration. The private sector cannot play the role of co-ordinator as its primary focus would be profit maximisation. The role of co-ordinating stakeholders in the hydrogen economy should be left to the government.
As an enabler of growth and development, the state should facilitate structured collaborative agreements between the leading sectors of the economy involved in the hydrogen value chain, these being the energy, chemicals, transport, agriculture and mining sectors.
From a skills development and training perspective, sector education and training authorities (SETAs) have led the way with collaborative agreements between CHIETA and the Energy and Water SETA (EWSETA), as well as CHIETA and the Transport Education Training Authority (TETA).
In addition to these drivers, there is a need to reduce hydrogen’s carbon footprint as hydrogen energy is not entirely zero carbon. The production of hydrogen may lead to substantial carbon emissions which vary depending on, for example, installation and distribution.
It is therefore incumbent on all stakeholders to formulate a clear plan for zero-carbon hydrogen production.
These drivers of growth would lead to a job-creating hydrogen economy in South Africa within the next few years. The country needs a mixed-energy policy and hydrogen constitutes a vital addition to the basket of success.
What is needed is swift implementation of hydrogen initiatives and a clear co-ordination plan, with collaboration a priority. Let us hope South Africa seizes the hydrogen opportunity before it is too late.
• Pillay is CEO of the Chemical Industries Education and Training Authority (CHIETA)
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