South Africa and the EU Explore Green Hydrogen Partnership
On Friday, senior officials from the South African government met with European Union representatives to launch the first round of talks under the SA‑EU Clean Trade and Investment Partnership (CTIP). The discussions centre on expanding renewable‑energy investment, with green hydrogen identified as a priority sector for both parties.
CTIP, unveiled in November 2023, aims to “promote investment opportunities in clean supply chains and create mutual benefits for the EU and South Africa” by directing capital toward technologies that support climate‑change mitigation. The partnership’s inaugural agenda covered hydrogen production, electricity‑grid upgrades, sustainable aviation fuels, and critical raw‑materials supply chains.
Why Green Hydrogen Matters for South Africa
Electricity and Energy Minister Kgosientsho Ramokgopa highlighted green hydrogen as a cornerstone of the country’s strategy to move away from coal‑dependent power generation. Produced by electrolyzing water using electricity from wind, solar, or other renewable sources, green hydrogen emits no carbon dioxide during its creation.
The process is especially valuable for sectors that are hard to electrify directly, such as heavy industry, long‑haul shipping, and aviation. While large‑scale deployment remains a work‑in‑progress, pilot projects worldwide have demonstrated that hydrogen can replace fossil‑fuel‑derived feedstocks in steelmaking, ammonia synthesis, and marine bunkering.
South Africa’s Hydrogen Society Roadmap
Launched in 2022, the Hydrogen Society Roadmap sets a national target of producing 500,000 tonnes of green hydrogen per year by 2030. According to a 2023 analysis by the National Business Initiative (NBI), South Africa could achieve this output at a cost of roughly US $1.60 per kilogram—among the lowest projected costs globally.
The NBI report cites the country’s abundant solar and wind resources, relatively low land‑acquisition expenses, and existing industrial infrastructure as key advantages. It also notes that realizing these cost projections will depend on securing financing, streamlining permitting, and developing skilled‑labor pipelines.
Potential Hydrogen Hubs
The roadmap has identified several regions where coordinated hydrogen production, storage, and export could be clustered:
- Northern Cape – high solar irradiance and proximity to the Sishen‑Saldanha rail corridor.
- Eastern Cape – strong wind corridors and access to the Port of Ngqura.
- Gauteng – existing petrochemical complexes that could be retrofitted for hydrogen use.
- Western Cape – proximity to the Port of Cape Town and emerging renewable‑energy zones.
These hubs would serve as focal points for CTIP‑facilitated investment, allowing European firms to partner with local developers on electrolyzer construction, renewable‑energy farms, and hydrogen‑handling infrastructure.
Broader CTIP Focus Areas
Beyond hydrogen, the talks examined opportunities in:
- Expansion of South Africa’s electricity grid – notably the 14,500 km of new transmission lines envisioned for the next decade.
- Sustainable aviation fuels derived from waste oils and biomass.
- Critical raw materials needed for clean‑energy technologies, such as lithium, cobalt, and rare‑earth elements.
Officials stressed that aligning regulatory frameworks and providing clear, stable trade policies will be essential to attract private capital. The involvement of senior government representatives from both sides aims to reduce uncertainty and accelerate project timelines.
Implications for Eskom and the Energy Transition
South Africa’s state‑owned utility, Eskom, is undergoing a restructuring that will separate generation, transmission, and distribution into three distinct entities. The transmission function has already been transferred to the newly formed National Transmission Company South Africa (NTCSA).
Eskom’s recent outreach to private security firms for grid protection and its openness to private sector participation in generation assets signal a broader shift toward market‑oriented reforms. These changes could create a more conducive environment for the large‑scale infrastructure projects required to support green‑hydrogen production and export.
EU‑South Africa Economic Ties
The European Union remains South Africa’s largest source of foreign direct investment, accounting for more than 40 % of inflows. In 2023, bilateral trade reached approximately €45 billion, underscoring the depth of the existing economic relationship.
CTIP seeks to deepen this partnership by channeling EU capital into clean‑energy ventures that help both regions meet their decarbonisation goals. For South Africa, successful hydrogen projects could diversify export earnings, reduce reliance on coal, and create skilled jobs in emerging green industries.
Looking Ahead
While the Friday meeting marked the start of a diplomatic process, concrete agreements will depend on follow‑up negotiations, feasibility studies, and the alignment of financing mechanisms. Stakeholders from industry, academia, and civil society will need to collaborate to ensure that hydrogen development delivers environmental benefits without compromising social equity or water security.
If the CTIP framework translates into tangible investment, South Africa could position itself as a competitive global supplier of green hydrogen—leveraging its renewable‑energy endowment to support both domestic industrial transformation and the EU’s climate ambitions.
