Germany and South Africa have announced a collaborative effort to advance green hydrogen projects, marking Europe's latest endeavor to leverage Africa's abundant renewable resources in order to meet their respective net zero targets by 2050.
As part of the agreement, Germany will provide support in developing markets, facilitating imports, and connecting producers with technology partners, as stated by Masopha Moshoeshoe, an executive from South Africa's presidency office responsible for investments and infrastructure.
Moshoeshoe emphasized that this partnership will “facilitate business-to-business opportunities between our developers and off-takers in Germany.”
Green hydrogen, which is generated by splitting water into hydrogen and oxygen through the use of renewable energy, holds significant potential as a clean fuel source across various industries, including transportation, petrochemicals, and steel.
European nations are increasingly turning to Africa to secure future supplies of green hydrogen, with substantial investments being made in projects spanning countries such as Namibia, Morocco, Egypt, and South Africa.
Recently, the Netherlands and Denmark jointly launched a $1 billion green hydrogen fund in South Africa, following the footsteps of a similar fund established in Namibia last year.
South Africa, as the continent's most advanced economy and the world's 14th largest emitter of greenhouse gases, has prioritized green hydrogen as a key element in its decarbonization efforts.
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President Cyril Ramaphosa has expressed the need for up to 319 billion rand ($17.28 billion) in investments to kick-start the industry within the country.
To date, South Africa has received $700 billion dollars out of the $8.5 billion pledged by a consortium of affluent nations including France, Germany, Britain, the United States, and the European Union. The agreement announced on Tuesday, however, did not specify any investment targets from either participating nation.
