Prieska Power Reserve

Hydrogen Policy

South Africa’s hydrogen policy

RSAIs building the hydrogen regulatory framework, with a strong role of public investment support – implementation requires specific policies to be defined

Key elements of RSA hydrogen commercialization strategy 

RSA production and investment support targets for green hydrogen

Policy highlights

Direct public financial intervention in project development,

especially in the short term to support scale up of private players:

  • Preferred form of funding mechanism not yet detailed, to include both direct funding and public-private/international cooperation partnerships.
  • RSA to build up an investment fund to support public investment into pilot/early projects.
  • Issuing of government-backed green bond to support funding (based on a green finance framework to be developed).

    Possible measures being investigated to:
    Support export: leverage Special Economic Zones, alignment of

    Guarantees of Origin system to international standards, government-lead negotiation of favourable export tariffs with other countries.

    Develop domestic market: carbon pricing, extension of renewables incentives to green hydrogen, centralisation of permitting processes.

    • Explicit focus on Boegoes Bays Hub as lighthouse project, followed by export hubs around Saldanha and Port Elizabeth and Vaal as domestic hub.

    Hydrogen strategy not yet transposed into regulations to define the implementation. While this leads to policy uncertainty, it could create the opportunity for discussion with policymakers on regulations’ design.