The European Union (EU) and South Africa have strengthened their collaboration with a R94-billion (€4.7-billion) investment package announced at the EU-South Africa Summit in Cape Town. European Commission President Ursula von der Leyen emphasized that clean energy and green hydrogen will form the cornerstone of this partnership, leveraging South Africa’s abundant renewable resources and its 91% share of global platinum group metals (PGM) reserves.
Von der Leyen highlighted the potential for South Africa to create quality jobs through the beneficiation of its metals and minerals, particularly in the clean hydrogen value chain. “You have clean energy in abundance, from wind to sun. You have raw materials critical for electrolysers, including PGMs, and a rising industry to produce clean hydrogen,” she stated. The Clean Trade and Investment Partnershipaims to support South Africa in adding value to local production, with a focus on clean energy, raw materials, and green hydrogen.
The partnership aligns with South Africa’s Just Energy Transition, with €4.4-billion of the investment package dedicated to renewable energy projects. This initiative is part of the Scaling up Renewables in Africa campaign, launched by Von der Leyen and South African President Cyril Ramaphosa at last year’s G20 Summit. The collaboration also includes investments in connectivity infrastructure and the local pharmaceutical industry.
PGMs play a critical role in the hydrogen economy, particularly in proton exchange membrane (PEM) technology for electrolysers and fuel cells. The World Platinum Investment Council (WPIC) notes that PGMs are essential for producing green hydrogen and enabling its use in decarbonization efforts. By 2030, hydrogen-related platinum demand is projected to exceed 600,000 ounces, driven by applications in mobility, stationary power, and midstream processes like ammonia cracking and liquid organic hydrogen carriers (LOHC).
South Africa’s Anglo American Platinum and venture capital firm AP Ventures are already supporting the commercialization of LOHC technology, which allows hydrogen to be transported using existing fuel infrastructure. This innovation, alongside the production of e-fuels like sustainable aviation fuel, underscores the versatility of PGMs in the energy transition.
Von der Leyen expressed her commitment to co-hosting the Scaling up Renewables in Africacampaign with Ramaphosa, aiming to bring clean, affordable power to the continent. “Together, we’ll help accelerate Africa’s clean energy journey,” she said.
