Programme Director
\Executive Director of MISTRA, Joel Netshitenzhe
Dr Iraj Abedian, CEO of Pan-African Capital
MISTRA Council of Advisors
MISTRA Board of Governors
Representatives from industry
Members of the media
Distinguished guests.
I am honoured to address this conference on the "Use and Displacement of Strategic Minerals". I would like to offer some reflections on key developments in the area of energy and minerals. In particular, I wish to discuss what we are presently doing by way of harnessing South Africa's mineral endowments to promote both the hydrogen economy and renewable energy use. Three aspects of our current situation are of particular relevance.
Firstly, while South Africa has been richly bestowed with various minerals, this has historically been a curse as much as it has been a blessing. Our traditional minerals-based economy left us with the legacy of the migrant labour system, widespread environmental damage, and the so-called "Dutch disease", which means our mineral exports inhibited the development of other industries.
This hampered the development of a better-rounded employment profile. Our minerals-based economy was based on cheap labour, leaving us unprepared to compete in a world economy driven by innovation, skills and adaptability.
Secondly, we remain highly dependent on imported energy in the form of petroleum. Energy is the life-blood of an economy, and energy to drive transport is especially vital for a country such as ours, where we are spread across vast spaces and are far from many of our most important trading partners.
Too much of our energy arrives in container ships and is subject to the vagaries of international supply and demand pressure, as well as the whims of speculators. In the 1990s, petroleum accounted for less than 10% of our total imports, but in recent years it has been around 15% or more. Crude oil is by far our single biggest import, and dependence on crude oil imports is therefore a major burden on our balance of trade situation and is increasing our vulnerability.
Thirdly, although South Africa has made huge strides in improving access to basic services, we are reaching a threshold where further improvement is becoming ever more difficult and costly. Especially challenging, is extending the electricity transmission grid into sparsely settled rural areas, where the need is great but the economic returns are often low.
South Africa has thus decided to strive towards a knowledge-driven economy. This means that innovation will form the basis of our economy. This change in approach will lead to "decent work" and alleviate the burden on the environment, while improving the quality of life of South Africans from all walks of life.
Please do not mistake me: we are not forsaking our mineral resources, instead we are thinking more strategically in order to extract the greatest possible value from them.This is what this conference is all about. And I believe in this respect we are starting to do reasonably well. By way of illustration, may I draw your attention to some exciting developments that the Department of Science and Technology is driving.
In 2008, the DST formally launched the "National Hydrogen and Fuel Cell Technologies Research, Development and Innovation Strategy", which – thankfully has the shorter name "HySA". The HySA Strategy is based on the fact that South Africa possesses 75% of the world's Platinum Group Metals, known as PGMs. PGM-based electro-catalysts are an important component of most types of fuel cells. It is envisaged that, with the nascent "hydrogen economy", the demand for PGMs will increase.
The vision of HySA is to promote the development of clean technologies that make effective use of our strategic resources, putting us at the cutting edge of this important arena of technological development. It will also boost international demand for these resources. However, the HySA strategy is not only a nifty aspect of long-term economic strategy. We want it to establish a new standard for best-practice.
Our approach includes an aggressive capacity-development programme, involving inter alia three newly established centres of competence located in science councils and universities a partnership and institution-building strategy spanning the country and beyond an ambitious commercialisation strategy that seeks to exploit every conceivable angle associated with the emerging hydrogen and fuel cell economy and a spatial industry-development aspect, so that we can institutionalise innovation and ensure that manufacturing costs are driven down as quickly as possible. Allow me to elaborate:
The way in which hydrogen is produced and stored is central to the success of fuel cell technology and the hydrogen economy in general. Carbon dioxide-free production of hydrogen from renewable sources is a core R&D activity at "HySA Infrastructure" a component of the HySA strategy which is aimed at addressing sustainability and climate change issues. Clean hydrogen can be produced using an "electrolyser", a device that breaks water down into hydrogen and oxygen by means of an electric current passed through water.
For this hydrogen to be environmentally clean, the electric current used in the electrolysis process has to be derived from renewable sources. In this regard, we are encouraged by recent developments. HySA Infrastructure has demonstrated the production of hydrogen from solar photo-voltaics through a pilot plant, as well as advanced solid-state electrochemical hydrogen compression and separation technology using PGM catalysts.
Various "metal organic framework" structures are also being investigated for possible use in H2 storage. A metal hydride storage material for hydrogen has been demonstrated in the Ahifambeni tricycle and the golf cart through a patent developed at HySA Systems, at the University of the Western Cape. HySA Systems is currently establishing a manufacturing pilot plant, which will commissioned in April 2014, and a supply agreement has been concluded for this material with a French company.
We are therefore well on course towards harnessing hydrogen power for cleaner transport. With further refinement this will become increasingly affordable. Meeting rural communities' electricity needs is a challenge because of the cost of extending transmission capacity from existing power plants to far-flung settlements. Renewable energy sources are an obvious solution, whether these are integrated into the existing grid in closer proximity to targeted communities, or by way of so-called "off-grid" developments.
Either way, a key impediment to such solutions is the variable nature of energy generated by renewables sources such as solar and wind. The challenge is energy storage. Improved storage solutions are what will allow us to further integrate energy from renewable energy sources into the grid without destabilising it, or to establish off-grid solutions.
We believe that energy storage technologies such as hydrogen/electrolyser combinations can make an important contribution in this respect. This is being pursued by HySA. Energy storage solutions favour the integration of diverse energy sources, and through its diverse production paths, hydrogen provides a flexible energy storage and carrier option. When used as feedstock for fuel cells, hydrogen produces electricity efficiently with zero emissions, even for applications such as electric vehicles.
It is no coincidence therefore that DST is developing a research, development and innovation or RDI roadmap for energy storage. One alternative route is the development of lithium-based and sodium-based technologies, in which South Africa has comparative advantages in materials, engineering and production.
This is also informed by the fact that South Africa has 80% of the world's manganese reserves, and manganese is a key component of the cathode materials used in the lithium ion batteries. This is another example of our attempt to take advantage of our particular mineral wealth.
The energy storage RDI roadmap involves capacity-building programmes supported by my department, research into cathode materials at the CSIR, material-modelling at the University of Limpopo, battery-testing at Nelson Mandela Metropolitan University, and battery-cell manufacturing at the University of the Western Cape.
We hope that, through the collaborative networks that have been established to date with private sector partners, both locally and internationally, HySA will continue its efforts to seek the most cost-effective and sustainable ways of incorporating PGM-based components in hydrogen fuel cell and other technologies. This will result in commercialisation ventures and a viable industry around mineral beneficiation.
Ladies and gentlemen, the National Development Plan re-commits the government to a path towards increased R&D investment in the country. If we want to be an innovative nation, we have to drive technological change and stay ahead of the competition.
Increased government investment in human capital development and scientific research infrastructure are critical aspects of our plans for the future. Our collective efforts are necessary to constantly renew and extend the culture of innovation in the country, and to ensure that the early markets for hydrogen and fuel cell technologies cross the chasm that is often associated with early technology adoption.
As the Department of Science and Technology, we are working on collaboration with the Department of Energy to include hydrogen and fuel cell technologies in the Integrated Resource Plan, and with the Department of Trade and Industry to facilitate the deployment of fuel cells.
We have already witnessed a more coordinated approach through the formation of a Fuel Cells Solutions Task Team, and the Platinum Valley Special Economic Zone Steering Committee. All these efforts by government are aimed at accelerating the deployment of fuel-cell technologies. These are necessary steps to creating new enterprises, as well as extending existing industry branches, thereby creating employment opportunities and improving our quality of life.
I want to encourage the private sector, especially the mining houses operating in this country, to be involved in the work of HySA. In this regard, I would like to thank all the private sector partners, including mining houses, which are already involved with the HySA Programme, especially Anglo American Platinum and Impala Platinum, who have already partnered with HySA. I hope that other private sector companies will come on board to assist not only with the development but the deployment of fuel cell technologies.
In closing, I would like to express thanks to the Mapungubwe Institute for Strategic Reflection for organising and hosting this conference, and more generally for promoting forms of exploration and dialogue that help us develop a common vision for a brighter, better future.
I thank you.
