Address by the Minister of Higher Education, Science and Innovation, Dr Blade Nzimande on the occasion of the Air Liquide & Energy Observer Event held at the Energy Observer Village in Cape Town
Programme Director;
Vice President of Air Liquide Large Industries South Africa (ALLISA), Mr Lasad Jaouani;
Group Executives of Air Liquide;
France’s Ambassador Designate to South Africa, Ambassador David Martinon;
Representatives from government departments;
Representatives from Institutional bodies;
Representatives from Academia;
Representatives from customers of Air Liquide;
Winners of the school poster session competition that was held during the 39th International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE) Education and Outreach Day event on 24 April 2023;
Members of the media;
Ladies and gentlemen:
I feel privileged and honoured to be speaking to you on this important occasion, the Air Liquide & Energy Observer Event.
I would first like to extend my sincere gratitude and heartfelt appreciation to Air Liquide for partnering with the Department of Science and Innovation (DSI) by offering the nine winners of the International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE) poster session competition for Universities of Technology (UoT) and Technical Vocational Education and Training (TVET) students, a unique opportunity to experience, first hand, the Energy Observer, a hydrogen powered boat that will be docked, for the first time in South Africa, at the V&A Waterfront in Cape Town.
As part of the winning package, Air Liquide went an extra mile to cover the costs associated with travel and accommodation for all the winners.
I have also been briefed that this kind gesture by Air Liquide was also extended to three students from Sci-Bono Discovery Centre in Johannesburg, which is a world-class science centre that supports maths, science and technology education.
This is indeed indicative of Air Liquide’s belief in investing and developing skills in young people to support a thriving hydrogen economy.
I would also like to extend my sincere gratitude to the Vice President of Air Liquide Large Industries South Africa (ALLISA), Mr Lasad Jaouani, for attending the recent IPHE Ministerial Gala Dinner which I hosted on 25 April 2023.
I believe it is through the fruitful and meaningful engagements that we had during the IPHE Ministerial Gala Dinner that made it possible for Mr Jaouani to extend an invitation for me to give a keynote address at this momentous and special event today.
We are therefore excited as the Ministry of Higher Education, Science and Innovation and as a country to welcome and experience the Energy Observer, a hydrogen powered boat, for the first time in South Africa.
I believe that the presence of the Energy Observer in South Africa will go a long way in creating awareness on the potential of a Hydrogen Economy.
The panel discussion focusing on the topic: “How to ensure that relevant portion of renewable hydrogen supply chain (electrolyser manufacturing, wind turbine and solar panel production, after sale services) is localised in South Africa and how a green economy would allow us to “retool/restart” South African manufacturing industry” is indeed topical.
Given that the National Development Plan (NDP) has identified science, technology and innovation (STI) as primary drivers of economic growth, job creation and socio-economic reform, the topic of the panel discussion remains relevant and critical in assisting to unpack the STI elements that can contribute to addressing challenges of unemployment, poverty and inequality.
Through its initiatives, the Department of Science and Innovation (DSI) strives to foster a national system of innovation (NSI) in which creativity, learning and entrepreneurship can flourish and address the socio-economic challenges faced by South Africa.
Let me indicate that our 2019 White Paper on STI emphasises the core themes of inclusivity, transformation and partnerships within the NSI. We are implementing our White Paper through our Decadal Plan which serves as a government-wide roadmap fostering interdepartmental collaboration and driving STI policy and programmes over the next 10 years.
The Decadal Plan has specific areas of focus and development, seeking to address a number of the challenges facing South Africa, from the current energy crisis to how we respond to natural disasters and prepare for future pandemics. This is why we value this relationship with Air Liquide.
The participation of South Africa in the energy research, development and innovation (RDI) Flagship Programmes seek to advance the aspirations of the South Africa’s National Development Plan (NDP) and our 2019 White Paper on STI.
This is the reason why the establishment of partnerships across the public and private sector is key to the successful implementation of our RDI programmes, which are guided by the following principles:
- Innovation in support of a developmental state;
- Increased investment artisanal/technician skills;
- Co-investments with private sector in technology innovation;
- Increased investments in local value addition;
- Support for the diversification of the energy mix through the development of low carbon technologies; and
- Support for local companies to maintain their global competitiveness through the reduction of the carbon footprint in their products.
Ladies and gentlemen
Our journey as South Africa towards the hydrogen economy is a culmination of a long-standing investment by the DSI in relevant scientific knowledge domains that we see as critical for advancing our national development and global competitiveness.
The DSI-led Platinum Valley initiative (PVI), South Africa’s version of a Hydrogen Valley, is one of the initiatives that is expected to spur South Africa’s move towards a hydrogen economy and the implementation of the Cabinet-approved National Hydrogen Society Roadmap 2021 (HSRM).
A feasibility study on the Hydrogen Valley was completed in partnership with Anglo American Platinum (Pty) Limited, Bambili Energy and Engie Energy Services SA and officially launched on 8 October 2021.
The study explored opportunities along the corridor that starts from Mogalakwena Mine in Limpopo, through Pretoria and Johannesburg, down to the coastal town of Durban, with the goal of promoting the use of hydrogen related technologies in various sectors of the economy along the corridor.
The study identified nine catalytic projects in the mobility, industrial and buildings sectors to kick-start the hydrogen economy in the Valley, which will cost approximately $1.2 billion to implement. The study projected a contribution of $3.9 to $8.8 billion to GDP (direct and indirect contributions) by 2050 and create approximately 14 000 to 30 000 jobs per year by 2030.
Some of the potential collaboration projects along the Hydrogen Valley corridor that could serve as low-hanging fruits are the heavy duty and mining trucks conversion with refuelling stations.
The Platinum Valley initiative was successfully registered with Infrastructure South Africa under Strategic Integrated Projects as gazetted by the Department of Public Works and Infrastructure on Government Gazette No. 47658 on 6 December 2022.
This is classified as a positive milestone that will prove to be favourable in attracting potential investments for the identified nine catalytic projects.
The Coal CO2 to X RDI Programme is also one of the initiatives that is expected to contribute effectively to the implementation of the HSRM and South Africa’s journey towards the hydrogen economy.
The Coal CO2 to X RDI Programme employs a CCU technology to capture carbon dioxide (CO2) from flue gas and convert it into sellable commodities, such as fertilisers.
The ability to create these valuable products out of the flue gas while minimising the negative impact of the flue gas on the environment makes CCU an attractive technology for climate change mitigation.
The Coal CO2 to X RDI Programme provides us an opportunity to link the existing coal sector with the incoming hydrogen economy in a tangible way by providing sustainable solutions for creating new industries and jobs that are anchored by South Africa’s resource endowment.
Through the investment in the four Energy RDI Flagship Programmes, the DSI seeks to support commercialisation and creation of new industries through:
- Local manufacturing of components based on publicly financed intellectual property (IP), with an emphasis on the development of value-added components emanating from the four Energy RDI Flagship Programmes; and
- Smart inbound technology transfer, where in its engagements with global original manufacturers, the DSI has insisted on potential partners agreeing to integrating locally developed technologies into their products, co-development of technology where synergies exist and embracing inbound technology where local expertise does not exist.
- In this regard, I would like to highlight that:
- South Africa can use its mineral endowment, renewable energy assets, land availability and local industry capabilities to create a globally competitive hydrogen economy as part of its Economic Reconstruction and Recovery Plan;
- Through the Just Energy Transition Investment Plan, South Africa can rebrand itself as a destination for Sustainable Investment that incorporates environmental, societal and good governance (ESG) principles;
- • Gender, Equality and Social Inclusion need to be at the core of the transition to a low carbon economy to tackle the triple challenges of poverty, inequality and unemployment; and
- • As a government, we continue to build stronger partnerships between government, private sector and civil society in an effort to create an enabling policy environment for the implementation of the Hydrogen Society Roadmap.
In conclusion, let me once more thank Air Liquide for partnering with my Department of Science and Innovation and for offering the nine winners of the IPHE poster session competition this valuable opportunity and experience.
I wish you a successful event and thank you for inviting me.
