The economic case for green hydrogen

With the debate about the threats posed by fossil fuels all but settled, the focus has shifted to enabling a more just transition towards environmentally sustainable economies.

Cognisant of the versatility of hydrogen and its potential in the economy, the Department of Science and Innovation (DSI) actively cultivates strategies to develop solutions in partnership with various stakeholders.

One such initiative was the establishment of Hydrogen South Africa (HySA). Initiated by the Department of Science and Technology (DST) and approved by the Cabinet in May 2007, as a long-term (15-year) programme within Department’s Research, Development, and Innovation (RDI) strategy, HySA officially launched in September 2008.

It is a national flagship programme aimed at developing intellectual property, knowledge, h  vcuman resources, products, components and processes to support the country’s participation in the nascent, but rapidly developing international platforms in hydrogen and fuel cell technologies.

The programme supports a knowledge-driven economy in which innovation is key to South Africa's economy, with a strong focus on:

• Use and Displacement of Strategic Minerals;
• Ways of harnessing South Africa’s mineral endowments to promote both the hydrogen economy and renewable energy use; and
• Seeking the most cost-effective and sustainable ways of incorporating PGM-based components in hydrogen fuel cell and other technologies (resulting in commercialisation ventures and a viable industry around mineral beneficiation).

The principal strategy of HySA is to execute research and development work, with the main aim of achieving an ambitious 25% share of the global Hydrogen and Fuel Cell market using novel Platinum Group Metal (PGM) catalysts, components and systems since South Africa has more than 75% of the world’s known PGM reserves.

To achieve this, the structure is aimed at the parallel development of knowledge and technology across all areas of the hydrogen and fuel cell value chain, allowing for the establishment of a strong Research and Development Hydrogen and Fuel Cell Technology exporting added value PGM materials, components and complete products.

We spoke to EPCM Global Engineering Chief Executive Officer and former HySA Advisory Board member Tumi Kgomo about the economic benefits of hydrogen in the context of transitioning to cleaner energy sources.

“The just energy and equitable transition concept says there is a justified need to transition into a cleaner way of managing coal and coal-related gases, which means it must not disrupt people’s lives,” Kgomo says. “A just transition is one that ensures the lives of those who had jobs due to coal mining and coal-related products are not disrupted.

“It will take us no less than 20 years to possibly transition to a mid-phase and even longer to a full transition in or out of coal. In and out because if you can scrub 99% of those flue gases coal is clean. Nothing is new. All this stuff has always been here it’s just that we’ve always mismanaged it. Indeed, the almost 4 000 existing boilers in the country do not have to move away from coal. They can run with coal, if done cleanly, to produce products that can be used as social development products, whether to issue fertiliser for free or to export these commodities into the world.

“Things like the sulphuric acid can be used for leeching the PGMs out of the soil. Basically, you start to have functional industries, including using carbon dioxide to produce tyres and become a tyre manufacturer, or you can take the carbon black to produce carbon nano tubes, which are batteries for drones.

“We can use our current endowed assets such as the coal and any other related material and any other mining-related material in a responsible manner, including steel to make green steel. That’s the only way you achieve a just transition. Any other process is bound to disrupt Net Present Value, which are the current assets we have,” he explained.

On the flip side, however, Kgomo is bullish about the potential benefits of hydrogen and the economic opportunities going into the future. He points out that as hydrogen can be used as a fertiliser it has a huge impact in the agricultural sector. In addition to its potential use as fuel for transport, it can also be used as fuel for electrification for houses.”

Kgomo also sees hydrogen playing a huge role in the manufacturing of future cars, even replacing the much-touted electronic vehicle market. “Currently, you need about 15 tons of lithium to make a 400kg battery and it takes anything between 18 and 24 months to cure the lithium in the sun to reach the requisite grade 15 tons only to get 400kg. When you imagine the number of vehicles you can manufacture at 15 tons per vehicle you then realise that it’s a non-solvable problem.

“However, hydrogen has become an opportunity. There are hydrogen combustion engines that will become the engines for buses and trucks and there’s also the electronic version where you take the hydrogen, put it through a fuel cell, create an electric charger and you can drive those. Already there are a number of truck manufacturers who’ve gone full hydrogen option.

“Hydrogen is going to be a big player in the micro grids space, in the energy transport space and in the energy space overall,” Kgomo points out.