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UK to again SA’s inexperienced hydrogen plans with grant funding

President Cyril Ramaphosa shakes arms with King Charles III and Camilla, Queen Consort of the UK throughout his welcome ceremony at Horse Guards.

  • The UK will assist South Africa’s inexperienced hydrogen plans with grant-funded technical help.
  • Moreover, a $5 billion funding in creating a inexperienced ammonia plant in South Africa is predicted to create native jobs.
  • President Cyril Ramaphosa is on a state go to to the UK this week.
  • For extra monetary information, go to the News24 Business front page.

The UK authorities intends to assist South Africa’s plans to develop a inexperienced hydrogen sector with grant-funded technical help.

The announcement was issued on Tuesday morning as President Cyril Ramaphosa launched into a state go to to the UK this week.

The grant funding – a determine of which has not but been disclosed – is a part of the UK’s contribution to the Simply Vitality Transition Partnership.

At COP27, Ramaphosa shared that he had requested the Worldwide Companions Group that originally pledged $8.5 billion to assist South Africa’s transition, and which incorporates the UK, to enhance the grant funding part of their pledge.

Inexperienced hydrogen – which is produced utilizing renewable electrical energy and, due to this fact, much less carbon intensive than conventional gasoline sources – is without doubt one of the inexperienced industries South Africa seeks to develop by way of the JETP. Different sectors important to decarbonising the South African financial system that may profit from the JETP are the electrical energy sector and transport, particularly by way of the event of electrical automobiles.

The initiative on inexperienced hydrogen is linked to the UK’s Partnering for Accelerated Local weather Transitions (UK PACT) programme. The UK PACT has already been concerned in information sharing for the event of South Africa’s Hydrogen Society Roadmap, released earlier this year. The programme has additionally funded research on the employment alternatives and abilities wanted for South Africa’s inexperienced hydrogen financial system.

The partnership between the 2 international locations entails the continual alternate of information, with the UK sharing its experiences and classes in creating the Tees Valley Hydrogen Hub. South Africa additionally needs to develop its personal hydrogen valley. For that reason, Minister of Larger Schooling, Science and Innovation Blade Nzimande intends to go to Teesside to be taught in regards to the regional improvement alternatives enabled by way of a inexperienced hydrogen sector.

There can even be tutorial cooperation between the UK’s Teesside College and Stellenbosch College in South Africa, permitting for the sharing and exchanging of finest practices. The UK’s Teesside College had been instrumental in constructing a regional hydrogen financial system.

The UK authorities additionally flagged an upcoming $5 billion funding by a UK firm – Hive Vitality – to construct a inexperienced ammonia plant in South Africa. The plant will create native jobs whereas presenting an financial alternative for the UK and different companies concerned within the undertaking.

Overseas Secretary James Cleverly stated that the 2 international locations would additionally announce the creation of a Partnership on Minerals for Future Clear Vitality Applied sciences, seeing because the southern African area’s international locations are main producers of minerals for clear applied sciences. For instance, these embrace platinum group metals, used for hydrogen manufacturing; and vanadium and manganese, used for battery storage. The partnership will concentrate on the “accountable” exploration, manufacturing and processing of those minerals.

There’s additionally a brand new training and abilities partnership between the international locations to advertise youth employment. The small print haven’t been unpacked – however UK funding can be used to develop technical and entrepreneurial abilities in inexperienced industries like electrical automobile manufacturing.


In a press release, UK Prime Minister Rishi Sunak additionally shared that the 2 international locations will proceed to work collectively on their infrastructure partnership.

“… We now have formidable plans to turbocharge infrastructure funding and financial progress collectively,” stated Sunak.

“I look ahead to welcoming President Ramaphosa to London this week to debate how we are able to deepen the partnership between our two nice nations and capitalise on shared alternatives, from commerce and tourism and safety and defence,” he added.

The UK and South Africa entered right into a Memorandum of Understanding earlier this 12 months – permitting the UK to share technical information, recommendation, abilities and experience with South Africa to handle capability gaps in getting ready infrastructure initiatives to draw finance available on the market.

“The Infrastructure Partnership will assist South Africa to translate finances commitments into extra prime quality, bankable initiatives that may be dropped at market,” the UK authorities stated in response to questions from News24.

In flip, UK corporations would enter into aggressive bidding processes – in keeping with South Africa’s procurement laws – to take part in infrastructure initiatives value £5.37 billion (R110 billion) over the following three years. 

READ | UK extends support to bolster SA’s capacity to deliver infrastructure projects

“Our partnership with Infrastructure South Africa has already supported the event of a top quality pipeline standing at roughly R400 billion of precedence initiatives to be dropped at market…” the UK authorities stated.

South Africa is the UK’s greatest buying and selling associate in Africa, with commerce value £10.7 billion (R220 billion) yearly.

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