‘By 2030, South Africa can unlock around 200,000 tonnes of hydrogen production demand from ships, sharply rising to up to 2 million tonnes by 2050,’ according to a new World Bank report.
Noting that the South African government and the private sector are ‘strategically positioning the country as an investment destination for green hydrogen’, the report maintained that: ‘International shipping can be a catalyst to commercialise South Africa’s green hydrogen economy.’
Explaining how maritime could play a ‘key role’ in the energy transition, the report said: ‘In a base case, up to 56,000 tonnes of annual hydrogen demand could come from the supply of marine fuel, as early as 2030. By 2050, this demand could rise to over 0.5 million tonnes per year.
‘If capturing the demand from ships passing by the Cape, South Africa could supply international fleets with up to 182,000 tonnes by 2030 and a substantial 2 million tonnes of green hydrogen by 2050.’
Furthermore, the report argued that: ‘As opposed to other hydrogen markets – for which South Africa would compete on price in distant economies – the demand from ships is unique. When “the customer comes to South Africa”, the country could reduce competition over countries which may have better renewables resources or access to lower financing cost.’
In a notice posted on LinkedIn yesterday (24 September), Maximilian Weidenhammer, one of the report’s authors, said: ‘Global shipping needs South Africa to fuel its green energy targets. The country’s strategic ports can become pivotal hubs in the global green hydrogen economy, driving innovation and creating new economic opportunities.’
The report, Creating a Green Marine Fuel Market in South Africa, was published on the World Bank Open Knowledge Repository on Friday (20 September). Click here to download.
