Hydrogen exports could become South Africa’s next major specialty and competitive advantage. ENGIE counts to develop its own projects in the country.
Hydrogen exports: a $100 billion a year market
Exporting hydrogen could be a big win for South Africa. Indeed, $10 billion per year would be achievable for its domestic market, as well as $100 billion for exports. The production of hydrogen would thus meet a strong internal demand from the mining, steel, transport and petrochemical sectors.
But, it would be even more profitable at the international level. The trade war is on between world powers, with many investing in this potentially carbon-neutral energy. The South African government could thus benefit by supplying countries that do not have the logistical capacity to manufacture.
Potentially, South African hydrogen is already of interest to Europe, Japan, Chile and Australia.
ENGIE interested in exporting hydrogen
Recently, Koen Langie, hydrogen solutions developer at Engie Africa Power and Gas, showed particular interest in this South African hydrogen.
ENGIE has also just signed a partnership with the South African holding company of the British company Anglo American for a hydrogen extraction truck for mines. The latter is also currently working on a concept known as “Hydrogen Valley” to decarbonize transportation.
South Africa is therefore well on its way to becoming one of the leaders in hydrogen exports.