“By designating these as priorities, government and its partners now have a mechanism to help the remaining five projects reach final investment decision, construction and production. A second wave of projects will follow, bringing further credible projects into the portfolio,” President Ramaphosa said.

The President said Africa has an opportunity to become a major global hub for green hydrogen, supported by its abundant renewable energy and water resources and reserves of critical minerals.

However, he warned that the continent should not remain merely a supplier of renewable energy, minerals or hydrogen molecules.

“Africa must participate across the value chain as owner, manufacturer, technology partner, producer and market.”

He said the green hydrogen economy must contribute to Africa’s industrialisation through areas such as fertiliser production, green iron and steel, sustainable fuels, equipment, engineering and related services.

The President noted that the development of the green hydrogen economy will be aided by the African Continental Free Trade Area, which will open larger markets and enable seamless regional value chains.

“The green hydrogen economy must harness African talent and capacity for innovation while expanding local procurement, manufacturing, employment and skills transfer. It must sustainably support continental energy transition and decarbonisation. It must involve communities as stakeholders, not passive bystanders,” the President said.

The President also called on technology partners to establish manufacturing, training and research capacity on the continent, warning that Africa should not simply be seen as a market for imported equipment.

“African nations must step up practical cooperation on standards, certification, infrastructure corridors and project preparation, including through the Africa Green Hydrogen Alliance. While we continue to work with our BRICS (Brazil, Russia, India, China and South Africa) and European partners to diversify financing, African development finance institutions must be at the forefront,” President Ramaphosa said.

African development finance institutions, he said, should increase project-preparation funding and provide financing instruments suited to the risks associated with first-of-a-kind projects.

He also called on prospective buyers to convert non-binding expressions of interest into credible, long-term offtake agreements capable of supporting project finance.

“Since last year’s Summit, we have moved from an undifferentiated pipeline to a managed priority portfolio.  This demonstrates that with partner support, public and private financing and proper planning, African nations can move from a concept on paper to projects in development,” the President said. – SAnews.gov.za

Source:   FCW Team