Southern Africa pushes green hydrogen

Industrialisation
Namibia, South Africa seek deeper regional hydrogen cooperation
Staff Reporter

Namibia and South Africa are looking to deepen regional cooperation on green hydrogen and associated industries as Southern Africa seeks to build new industrial value chains around its renewable-energy resources.


Namibia is participating in the African Green Hydrogen Summit in Cape Town, South Africa, from 15-16 September, just days after hosting the Africa Green Industries Summit in Swakopmund.


The back-to-back summits have placed renewed focus on the region's ambitions to move beyond the export of raw resources and develop industries that can capture more value from Africa's renewable-energy potential.


Speaking on the sidelines of a technical briefing ahead of the Cape Town summit, Joseph Mukendwa, interim head of the Namibia Green Hydrogen Programme, said continental platforms were important for advancing economic diplomacy, attracting investment and strengthening regional cooperation.


Mukendwa said Namibia and South Africa could leverage their respective strengths to advance green industrialisation within the Southern African Development Community (SADC).


This could include developing regional value chains, creating economic opportunities and positioning Southern Africa as a competitive producer of green products for international markets.


"The strength of the region lies in how we can complement each other," Mukendwa said.


The Cape Town summit brings together governments, development partners, investors, project developers and other stakeholders to accelerate the development of green hydrogen, Power-to-X and associated green industrial value chains across Africa.


Commitments thus far 


The summit has also highlighted growing international financial support for the sector.


The European Union announced €20 million in grant funding for South Africa, with the potential to mobilise a further €200 million through Germany's KfW development bank.


An additional €37 million was announced through the EU's Global Gateway initiative, while the African Development Bank announced US$20 million in reimbursable grant funding for four projects in Morocco, Egypt, South Africa and Namibia.


The funding commitments come as African countries seek to translate their renewable-energy resources into industrial capacity, rather than relying primarily on the export of unprocessed commodities.


For Namibia, the regional developments come as the country seeks to establish green hydrogen and Power-to-X industries spanning green ammonia, sustainable fuels and other products.


South Africa moves into project phase


South Africa has used the summit to announce the first wave of its national green hydrogen programme, signalling a shift from developing the policy framework towards projects with defined milestones and investment commitments.


Six priority projects have been identified across green ammonia, sustainable aviation fuel, green steel and domestic industrial applications.


The Phelan Green Group's Saldanha Bay project has emerged as an early benchmark for the programme after reaching a final investment decision and securing the necessary offtake to move towards construction.


The projects are intended to establish new industrial capacity and create economic value within South Africa while supporting the development of a wider green industrial ecosystem.


For Namibia, South Africa's progress could strengthen the case for greater regional integration around green hydrogen, including shared supply chains, infrastructure, skills and potential markets.