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Exploring Economic Expansion of Green Hydrogen Production in South Africa

Author

Listed:
  • Noluntu Dyantyi-Gwanya

    (Directorate of Research and Innovation, Walter Sisulu University, Mthatha 5117, South Africa)

  • Solomon O. Giwa

    (Department of Applied Sciences, Faculty of Natural Sciences, Walter Sisulu University, Buffalo City Campus, East London 5200, South Africa)

  • Thobeka Ncanywa

    (Department of Business Management Education, Faculty of Education, Walter Sisulu University, Mthatha 5117, South Africa)

  • Raymond T. Taziwa

    (Department of Applied Sciences, Faculty of Natural Sciences, Walter Sisulu University, Buffalo City Campus, East London 5200, South Africa)

Abstract

Hydrogen is a crucial energy carrier for the Clean Energy Sustainable Development Goals and the just transition to low/zero-carbon energy. As a top CO 2 -emitting country, hydrogen (especially green hydrogen) production in South Africa has gained momentum due to the availability of resources, such as solar energy, land, wind energy, platinum group metals (as catalysts for electrolysers), and water. However, the demand for green hydrogen in South Africa is insignificant, which implies that the majority of the production must be exported. Despite the positive developments, there are unclear matters, such as dependence on the national electricity grid for green hydrogen production and the cost of transporting it to Asian and European markets. Hence, this study aims to explore opportunities for economic expansion for sustainable production, transportation, storage, and utilisation of green hydrogen produced in South Africa. This paper uses a thematic literature review methodology. The key findings are that the available renewable energy sources, incentivizing the green economy, carbon taxation, and increasing the demand for green hydrogen in South Africa and Africa could decrease the cost of hydrogen from 3.54 to 1.40 €/kgH 2 and thus stimulate its production, usage, and export. The appeal of green hydrogen lies in diversifying products to green hydrogen as an energy carrier, clean electricity, synthetic fuels, green ammonia and methanol, green fertilizers, and green steel production with the principal purpose of significant energy decarbonisation and economic and foreign earnings. These findings are expected to drive the African hydrogen revolution in agreement with the AU 2063 agenda.

Suggested Citation

  • Noluntu Dyantyi-Gwanya & Solomon O. Giwa & Thobeka Ncanywa & Raymond T. Taziwa, 2025. "Exploring Economic Expansion of Green Hydrogen Production in South Africa," Sustainability, MDPI, vol. 17(3), pages 1-25, January.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:3:p:901-:d:1574120
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    References listed on IDEAS

    as
    1. Vladimir Kindra & Igor Maksimov & Maksim Oparin & Olga Zlyvko & Andrey Rogalev, 2023. "Hydrogen Technologies: A Critical Review and Feasibility Study," Energies, MDPI, vol. 16(14), pages 1-18, July.
    2. Khatiwada, Dilip & Vasudevan, Rohan Adithya & Santos, Bruno Henrique, 2022. "Decarbonization of natural gas systems in the EU – Costs, barriers, and constraints of hydrogen production with a case study in Portugal," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    3. Zainal, Bidattul Syirat & Ker, Pin Jern & Mohamed, Hassan & Ong, Hwai Chyuan & Fattah, I.M.R. & Rahman, S.M. Ashrafur & Nghiem, Long D. & Mahlia, T M Indra, 2024. "Recent advancement and assessment of green hydrogen production technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PA).
    4. Heping Xie & Zhiyu Zhao & Tao Liu & Yifan Wu & Cheng Lan & Wenchuan Jiang & Liangyu Zhu & Yunpeng Wang & Dongsheng Yang & Zongping Shao, 2022. "A membrane-based seawater electrolyser for hydrogen generation," Nature, Nature, vol. 612(7941), pages 673-678, December.
    5. Velazquez Abad, Anthony & Dodds, Paul E., 2020. "Green hydrogen characterisation initiatives: Definitions, standards, guarantees of origin, and challenges," Energy Policy, Elsevier, vol. 138(C).
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    Cited by:

    1. Patrizia Ghisellini & Renato Passaro & Sergio Ulgiati, 2025. "Is Green Hydrogen an Environmentally and Socially Sound Solution for Decarbonizing Energy Systems Within a Circular Economy Transition?," Energies, MDPI, vol. 18(11), pages 1-55, May.
    2. Sandile Mtolo & Emmanuel Kweinor Tetteh & Nomcebo Happiness Mthombeni & Katleho Moloi & Sudesh Rathilal, 2025. "Optimization of Green Hydrogen Production via Direct Seawater Electrolysis Powered by Hybrid PV-Wind Energy: Response Surface Methodology," Energies, MDPI, vol. 18(19), pages 1-44, October.
    3. Blessed Sarema & Gibson P. Chirinda & Sören Scheffler & Stephen Matope & Ulrike Beyer, 2025. "Areal Assessment in the Design of a Try-Out Grid-Tied Solar PV-Green Hydrogen-Battery Storage Microgrid System for Industrial Application in South Africa," Sustainability, MDPI, vol. 17(19), pages 1-15, September.

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