WESGRO arranges MoU for green hydrogen deal across Cape and Namibia

The new initiative includes the Northern and Western Cape provinces, Namibia and the Netherlands in a joint operation to transport and manufacture hydrogen for fuel cells





May 16, 2024

WESGRO arranges MoU for green hydrogen deal across Cape and Namibia

Several prominent entities, including Wesgro, NCEDA, Namibia’s Environmental Investment Fund, Gasunie, and Climate Fund Managers, have joined forces in a commercial partnership aimed at exploring the feasibility of a green hydrogen pipeline connecting the Western Cape, Northern Cape, and Luderitz. This initiative, known as the Western SADC Green Hydrogen production corridor, marks a significant step towards advancing sustainable energy solutions in the region.

The memorandum of understanding (MoU) signed by these parties kickstarts a pre-feasibility study to assess the viability of constructing the green hydrogen pipeline. This study, expected to be completed by the end of 2024, will evaluate technical, commercial, financial, socio-economic, and operational aspects to determine the feasibility of establishing the corridor. The project aims to integrate communication systems and intelligence-sharing between the regions involved, enhancing connectivity and promoting economic growth.

The collaborative effort underscores South Africa's commitment to adopting green hydrogen as a key driver of economic expansion and environmental sustainability. It builds upon previous agreements between South Africa, Namibia, and the Netherlands, demonstrating a shared commitment to exploring cross-border green hydrogen infrastructure.

Green hydrogen, derived from renewable energy sources, is being touted as a vital renewable energy resource, though much of it is dependent on Western global manufacturing subsidies, and is regarded by many engineers as an inefficient means of energy storage. Nevertheless, while favourable market conditions prevail, this offers a lucrative opportunity.

Namibia, known for its abundant sunlight and vast expanses, seeks to leverage green hydrogen production to establish itself as a renewable energy hub in Africa. In South Africa, green hydrogen offers a viable solution to supplement renewable energy sources by providing a reliable energy storage medium.

The MoU signing is seen as a significant step towards developing this temporary opportunity. It sends a clear signal to investors that renewable energy is a priority, accelerating the transition towards a low-carbon future. The partnership also highlights Africa's potential to lead in Just Energy Transition Partnerships, showcasing the continent as a global player in sustainable energy solutions.

The initiative has received widespread support from key stakeholders, including government officials, industry experts, and environmental advocates. It is viewed as a strategic infrastructure investment that will not only drive economic growth and job creation but also contribute to the global effort to combat climate change.

Wesgro is currently engaging with a diverse array of stakeholders at the World Hydrogen Summit to gather insights and strategies for boosting investments in green hydrogen initiatives. The collaborative effort reflects a shared vision for a greener, more sustainable future, underpinned by strategic partnerships and innovative solutions.

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