TITLE OF THE REPORT TO GO HERE
Summary
The document examines South Africa's nascent green hydrogen economy, positioning the country in the 'technological readiness' phase of market development. It argues that while some input manufacturing is emerging, there is a critical need for coordinated industrial and energy policies—including capital grants and electricity tax exemptions—to drive commercial production. A central focus is the Technical and Vocational Education and Training (TVET) sector, where the author identifies a 'wide chasm' between graduates and employment. The paper advocates for a shift toward 'anticipatory governance' and 'skills foresight' to better align vocational training with the evolving demands of the green hydrogen value chain, ensuring a just transition for workers displaced from the coal industry.
Key insights
- South Africa is currently in the 'technological readiness' stage of green hydrogen market development, characterized by a lack of cost parity with grey hydrogen and a value chain that is not yet commercially developed.
- The domestic green hydrogen landscape is seeing rapid growth in input manufacturing, particularly in electrolysers and fuel cell systems, leveraging South Africa's global lead in platinum reserves for Proton Exchange Membrane (PEM) technology.
- The Department of Science and Innovation (DSI) has proposed a 'hydrogen valley' concept with hubs in Johannesburg, Durban/Richards Bay, and Mogalakwena/Limpopo, which is estimated to create between 14,000 and 30,000 jobs per year.
- There is a significant disconnect in the South African vocational skills system, where a 'wide chasm' exists between TVET graduates and employment, partly due to limited access to workplace-based learning.
- The South African government and TVET sector lack 'anticipatory governance' capabilities, relying on narrow quantitative forecasting rather than strategic skills foresight to prepare for technological disruptions.
- To support the green hydrogen transition, the document recommends that the Department of Trade, Industry and Competition (dtic) provide capital grants and concessional loans to reduce up-front investment costs for electrolyser and fuel cell manufacturing.
- The Integrated Resource Plan (IRP) 2019 is identified as insufficient for the current landscape because it sets no specific targets for electrolysers or dedicated renewables generation for hydrogen production.
- A 'Just Energy Transition Centre' is envisioned by the DSI to re-skill marginalised communities in regions likely to face job losses, such as Emalahleni and Secunda in Mpumalanga province.
Cite the original document
- APA
- South African Institute of International Affairs (n.d.). TITLE OF THE REPORT TO GO HERE. https://saiia.org.za/wp-content/uploads/2026/03/Workstream-4-TVET-Skills-in-the-South-African-Green-Hydrogen-Economy_Policy-Review.pdf
- Chicago
- South African Institute of International Affairs. TITLE OF THE REPORT TO GO HERE. n.d. https://saiia.org.za/wp-content/uploads/2026/03/Workstream-4-TVET-Skills-in-the-South-African-Green-Hydrogen-Economy_Policy-Review.pdf.
- Wikipedia
- {{cite report |author=South African Institute of International Affairs |title=TITLE OF THE REPORT TO GO HERE |url=https://saiia.org.za/wp-content/uploads/2026/03/Workstream-4-TVET-Skills-in-the-South-African-Green-Hydrogen-Economy_Policy-Review.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{southafricaninstituteofinternationalaffairsndtitle, author = {{South African Institute of International Affairs}}, title = {{TITLE OF THE REPORT TO GO HERE}}, institution = {South African Institute of International Affairs}, url = {https://saiia.org.za/wp-content/uploads/2026/03/Workstream-4-TVET-Skills-in-the-South-African-Green-Hydrogen-Economy_Policy-Review.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
Full text
Collected · Record updated