Opinion piece: Establishing Green Hydrogen and Ammonia Production Facilities

By Vuyokazi Gwabeni, Business Development Manager

The global shift towards clean and renewable energy sources has created a growing demand for sustainable fuel alternatives. Green hydrogen and ammonia are two such alternatives; having gained significant attention in recent years. Vuyokazi Gwabeni, a Business Development Manager for the Coega Development Corporation, shares her views on establishing green hydrogen and ammonia production facilities, highlighting the potential benefits, and providing examples of the Coega Development Corporation’s initiatives in this field.

Green hydrogen is produced through electrolysis, a process that splits water molecules into hydrogen and oxygen using electricity generated from renewable sources. This form of hydrogen has immense potential as a clean energy carrier since it can be produced with zero carbon emissions. Ammonia, on the other hand, is a hydrogen carrier that can be produced by combining hydrogen with nitrogen, making it a versatile fuel alternative for various industries such as transportation and power generation.

Establishing green hydrogen and ammonia production facilities holds numerous benefits for both the environment and the economy. Firstly, it provides a sustainable solution to reduce carbon emissions, thereby mitigating the impacts of climate change. The utilisation of renewable energy sources for hydrogen and ammonia production ensures that these fuels have a minimal carbon footprint throughout their lifecycle. By adopting these alternatives, countries can significantly reduce their dependence on fossil fuels, and transition to a green and sustainable energy system.

Moreover, this shift towards green hydrogen and ammonia production can also create a plethora of economic opportunities. The establishment of these facilities would lead to job creation, attracting investments, and driving economic growth in the regions where the projects are implemented. In this regard, Coega has a vital role to play in fostering a green hydrogen and ammonia industry in South Africa. The Coega Special Economic Zone (SEZ) offers several advantages that make it an ideal location for the establishment of green hydrogen and ammonia production facilities including abundant renewable energy resources such as wind and solar, which are vital to produce green hydrogen and ammonia.

When Coega’s business development team began looking into the opportunity of green hydrogen, which was not included in our initial master plan four years ago, we were coincidently working on our re-imagined strategy. Sustainability became the forefront of that Strategy, and the opportunity presented itself when an investor approached us, sparking an interest in our region’s potential as a hub for exporting green ammonia.

We realised that our existing assets and infrastructure, tailored for becoming a transshipment and export hub, could be harnessed to facilitate the green energy revolution for the country as well as for Africa. This was in line with our vision as laid out in the SEZ Act. We were able to identify that the Eastern Cape is an ideal location with the elements required for green hydrogen production. It was a learning curve for us in a sense that we had to work with our partners to enable this opportunity.

Our first task was to assess whether the assets we have could provide the necessary resources for green hydrogen production. The journey started with a feasibility study. We delved into electrolysing technology, understanding the essential elements that would make green hydrogen production feasible in our region. It was not just about the renewable energy resources; it was also about water availability as a critical input. At the time, this took place in the context of a regional drought crisis. Fortunately, the potential for a desalination plant project, a dual-purpose initiative to secure water supply for our SEZ and support the development of the aquaculture development zone was already being investigated. This presented an additional opportunity to leverage the synergies around a salt manufacturing plant that produces a lot of wastewater, which could be cleaned and diverted in the electrolyser.

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Our connection to the deepwater Port of Ngqura is a key enabler to ensure that the product reaches its intended market, and the availability of sufficient storage capacity and export infrastructure was a plus for us.

Over and above the physical infrastructure, benefits provided by the SEZ include assistance with incentives and advice on the required Environmental Impact Assessments (EIAs). Our aim was to create an environment that attracts, and facilitates the growth of, green energy projects.

With these pieces in place, the Coega SEZ serves as a crucial export hub for green hydrogen and ammonia in the region. What began as a humble reimagining of our strategy, transformed into a beacon of green energy innovation in the Eastern Cape.

The development of the Eastern Cape Green Hydrogen Strategy will further enhance the opportunity for the region to become an export hub and look at how the localisation of the industry could be achieved for the benefit of economic growth.

The Coega SEZ is a tool to create sustainable and inclusive economic benefits by attracting investments in various sectors, focusing on the localisation of the renewable energy value chain. The Corporation’s commitment to renewable energy is evident in its initiatives, with a recently approved Coega SEZ Energy Strategy that seeks to develop of solar parks and other forms of alternative energy generation methods.

The Coega Development Corporation recognises green hydrogen and ammonia as a promising sector for investment and growth. The Corporation is actively engaging with potential investors and stakeholders to develop projects related to these fuels.

By leveraging its strengths, including its supportive regulatory environment, skilled workforce, and existing infrastructure, the Coega Development Corporation aims to attract partnerships and investments to establish green hydrogen and ammonia production facilities. The Corporation’s strategic location and focus on sustainability make it an ideal partner for companies looking to tap into the green energy market.

To network with Vuyokazi, email [email protected].

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