South Africa’s abundant platinum group metals (PGMs) have received a significant boost, with the European Union’s backing of green hydrogen generation at the EU-South Africa Summit in Cape Town. European Commission President Ursula von der Leyen emphasized clean energy and green hydrogen as key components of the €4.7 billion (R94 billion) investment package announced during the summit.
South Africa, a country with a wealth of natural resources, has become a global leader in platinum mining. Von der Leyen highlighted the nation’s vast potential in clean energy production, citing its wind and solar resources, coupled with its critical role in the green hydrogen value chain. She pointed out that South Africa holds 91% of the world’s platinum reserves, a critical resource needed to produce green hydrogen and turn it into clean electricity, with water as the only byproduct.
The EU-South Africa summit also led to the establishment of a Clean Trade and Investment Partnership, marking South Africa as the first country to sign such an agreement. This partnership will facilitate the development of strategic industries along the entire clean energy supply chain, including the production of green hydrogen, creating jobs in South Africa and the wider African continent. This partnership aims to boost local production, skill development, and technology transfer in South Africa’s energy sector, aligning with the global push for a green energy transition.
A key focus of the partnership is the €4.4 billion allocated to projects supporting South Africa’s Just Energy Transition. This includes efforts to scale renewable energy across Africa, an initiative championed by von der Leyen and South African President Cyril Ramaphosa at the G20 summit last year. The Global Gateway investment, which forms part of this package, will support clean energy projects, enhance infrastructure, and strengthen the local pharmaceutical industry.
Hydrogen Value Chain and Platinum Group Metals
Hydrogen, the most abundant element on Earth, plays a crucial role in the energy transition, particularly when produced as green hydrogen using renewable energy sources. PGMs are indispensable in this process, serving as catalysts in several stages of the hydrogen value chain.
Platinum, in particular, is essential for electrolyzers that split water into hydrogen and oxygen, as well as for fuel cells that generate power from hydrogen. The use of platinum in fuel cells for mobility (land, sea, and air transport) and stationary applications is forecast to drive substantial demand for PGMs in the coming years. By 2030, hydrogen-related platinum demand is projected to exceed 600,000 ounces.
In addition to its role in electrolysis and fuel cells, PGMs are involved in midstream hydrogen applications such as purifying hydrogen from electrolysers, ammonia cracking, and loading hydrogen into liquid organic hydrogen carriers (LOHC) for transport and storage. The development of e-fuels, including sustainable aviation fuel, is another growing sector where PGMs play a vital role.
South Africa’s own Anglo American Platinum and AP Ventures are helping to fund innovations in hydrogen transportation and storage, including LOHC technology. These developments make it easier to transport hydrogen using existing oil-based fuel infrastructure, addressing the challenges of hydrogen’s low volumetric energy density.
As the hydrogen economy grows, the need for efficient transportation systems will increase, particularly to connect hydrogen production facilities with emerging global demand. Hydrogen can be transported in forms like ammonia or LOHCs, with PGMs such as ruthenium and platinum serving as catalysts in the chemical processes that enable these transportation methods.
A Path Forward for South Africa’s Green Hydrogen Future
With the EU’s support, South Africa is well-positioned to become a global leader in the green hydrogen economy, leveraging its vast PGM resources. The Clean Trade and Investment Partnership with the EU will provide the necessary incentives to attract further investment, fostering a clean energy revolution in South Africa.
As President von der Leyen noted, Africa’s clean energy journey is gaining momentum. With international backing and the vast potential of South Africa’s platinum reserves, the nation is set to play a key role in the global green hydrogen market, helping to bring affordable and sustainable energy to Africa and the world.
