South Africa’s PGM Sector Gains Momentum with EU’s €4.7 Billion Green Hydrogen Investment
Following the European Commision’s announcement of a €4.7 billion investment package, South Africa’s world-leading Platinum Group Metals (PGM) industry has received a significant boost. This investment aims at advancing clean energy and green hydrogen initiatives. Moreover, the EU-South Africa announced this during their summit in Cape Town. To be more precise, where European Commission President Ursula Von der Leyen shed lights on the critical role of South Africa’s mineral worth in driving global decarbonisation efforts. Additionally, and in order to create high job opportunities, Von der Leyen highlighted the importance of beneficiating the country’s metals and minerals. With annual trade between South Africa and the EU nearing €50 billion and 98% (quota free).
As Von der Lyen explained, the Clean Trade and Investment Partnership will support South Africa. In terms of adding more value to its local production, in the clean hydrogen value chain precisely.
“You have clean energy in abundance, from wind to sun. You have raw materials that are critical for electrolysers, including %91 of the world’s PGM reserves, and you have a rising industry to produce clean hydrogen and strong export ambitions,” she said.
This positions the country as a rising player in producing clean hydrogen and pursuing strong export ambitions. This partnership marks a historic milestone as South Africa becomes the first country to sign such an agreement with the EU, focusing on the clean energy transition, skills development, technology transfer, and strategic industries across the entire supply chain.
A Major Leap Toward South Africa’s Just Energy Transition
According to Mining Weekly, the bulk of the €4.7 billion Global Gateway investment package, €4.4 billion, will be invested in projects supporting South Africa’s crucial Just Energy Transition. Representing a considerable commitment in the context of the Scaling up Renewables in Africa campaign, launched by Von der Leyen and Ramaphosa on the Margins of last year’s G20 Summit in Rio.
The Global Gateway initiative, which aims to invest in infrastructure projects worldwide, will culminate in a major pledging event at the upcoming G20 Summit in Johannesburg in November. The initiative also focuses on enhancing connectivity infrastructure, both physical and digital, and uplifting South Africa’s pharmaceutical industry.
Why PGM Are Essential for Green Hydrogen and Decarbonisation
Platinum Group Metals (PGMs) are indispensable to the hydrogen value chain, playing a vital role in producing green hydrogen. Besides, converting the produced green hydrogen into clean electricity with water as the only byproduct. According to the World Platinum Investment Council (WPIC), PGMs are used across various applications in the hydrogen value chain. Including upstream electrolysis and downstream fuel cell technologies. Furthermore, PGM catalysts, particularly iridium and ruthenium, are critical for proton exchange membrane (PEM) electrolysers. They split water into oxygen and hydrogen using renewable energy. PGMs, especially Platinum, are also essential in hydrogen fuel cells used in mobility (land, sea, and air transport). As well as stationary power generation.
By 2030, hydrogen-related Platinum demand is forecast to exceed 600,000 ounces annually. For more details, check this article.
