Freeport Saldanha explores potential of green hydrogen

Freeport Saldanha and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH hosted a two-day event on green hydrogen and PtX, including a demonstration of hydrogen production and a networking event to explain the potential impact of the green hydrogen revolution on the region. Since the Saldanha Bay municipality plays an important role in the unlocking of investment and is a major stakeholder in the Ease of Doing Business at Freeport Saldanha, the training workshop expanded the knowledge of municipal officials on the topic and highlighted the potential impacts of the developments in the municipal area. The training workshop forms part of GIZ's H2.SA programme strategy to promote a green hydrogen economy in South Africa, implemented in close cooperation with The Presidency of South Africa. 

Speaking at the networking event in Saldanha Bay, Kaashifah Beukes, CEO of Freeport Saldanha, said the government's green hydrogen strategy was a "pivotal" moment that has set Freeport Saldanha on a new trajectory.

"Freeport Saldanha is a catalyst for what is possible in the future," she said. "But it will only happen in partnership, through public engagement and with sound governance. We have a chance to make a difference - we need to get it right and do it better." 

Saldanha Bay can become a significant player in the green hydrogen sector. Green hydrogen, produced through electrolysis using renewable energy sources, holds great promise as a clean and sustainable alternative to fossil fuels.

The availability of low-cost, clean (i.e. renewable) energy is a critical factor in making green hydrogen economically viable. A key factor that makes Saldanha Bay an ideal location for green hydrogen is its vast renewable energy potential. The region benefits from strong and consistent winds, making it a prime location for wind power generation, and is blessed with abundant solar resources. Saldanha Bay can power large-scale electrolysis plants to produce green hydrogen by harnessing these renewable resources. 

Beukes thanked the Saldanha Bay Municipality Executive Mayor Councillor André Truter for the ongoing cooperation and support he and his team had shown. She also thanked the keynote speaker, the Minister of Co-operative Governance and Traditional Affairs, Ms Thembisile Phumelele Simelane-Nkadimeng, for her leadership on these matters. Such support, she said, confirmed that government could provide favourable policies, incentives and regulatory frameworks to encourage investment and facilitate the development of a green hydrogen infrastructure. In addition, she said, private companies would play an essential role by investing in and operating various supply chain elements and developing new technologies to improve efficiency and reduce costs.

During the workshop on the regulatory and strategic planning environment, Mr Thabo Chauke, GIZ policy and regulatory framework advisor said the pressing issues to be addressed were what South Africa could do to forge a green economy in the next three years. Nine recommendations from a GIZ H2.SA policy review report were summarised by Frederico Villatico, an independent consultant with GIZ, who pointed out that compliance with evolving regional regulations, codes and standards (RCS) – such as the Guarantee of Origin (GO) – was a priority for South Africa to access export markets.

Developing a green hydrogen industry in Saldanha Bay can create new employment opportunities in the construction and operation of electrolysis plants and in supporting industries such as maintenance, logistics and infrastructure development. A green hydrogen cluster can also attract investment from local and foreign companies, fostering innovation and creating a thriving ecosystem of related industries. And as the global demand for clean energy continues to grow, countries seeking to reduce their carbon emissions will be eager to import green hydrogen. In addition, Saldanha Bay's location can provide easy access to key markets in Europe, Asia and beyond, giving it a competitive advantage.

By leveraging these advantages and fostering stakeholder collaboration, Saldanha Bay can contribute to the global transition to clean and sustainable energy while reaping the economic and environmental benefits for the local community and the country.

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