[{"bbox": [86, 153, 307, 180], "category": "Section-header", "text": "### Green Hydrogen Focus:"}, {"bbox": [85, 197, 1145, 454], "category": "Text", "text": "Green hydrogen is pivotal for expanding South Africa's renewable energy capacity and advancing its hydrogen economy. The country's significant renewable resources, expertise in various technologies and access to PGMs for electrolysers position it to become a leading global supplier in the green hydrogen market. This also enables South Africa to establish new value chains in CRMs, crucial for the global net-zero transition. The focus on green hydrogen and derivatives is also linked to EU interests, ie. the contribution to domestic decarbonisation through investments of EU companies and export of EU based technology, goods and services (ie. electrolyser supply-chains) as well as for the potential use for export back to the EU (ie. green ammonia or e-SAF). In this sense, cooperation is required with South Africa on regulatory convergence to recognise the green hydrogen character, also for purposes of exports to the EU, as well as on renewable energy and electricity grid investments, key inputs for green hydrogen production."}, {"bbox": [85, 471, 1080, 499], "category": "Text", "text": "Cooperation on ports and infrastructure improvement is key for both green hydrogen and CRM value-chains."}, {"bbox": [86, 563, 506, 594], "category": "Section-header", "text": "## 1.3 Zone benefitting from the Action"}, {"bbox": [85, 609, 1115, 692], "category": "Text", "text": "The Action shall be carried out in the Republic of South Africa, included in the list of the ODA recipients, in the context of the regional CRM value chain. Where possible, the geographical focus of the Action will be on the North-South corridor (Durban-Lubumbashi)."}, {"bbox": [86, 722, 323, 753], "category": "Section-header", "text": "# 2 RATIONALE"}, {"bbox": [86, 788, 234, 814], "category": "Section-header", "text": "## 2.1 Context"}, {"bbox": [85, 845, 1145, 1003], "category": "Text", "text": "South Africa's abundant renewable energy resources and potential position it as a prime location for green hydrogen production. Green hydrogen, created using additional renewable energy, has the potential to decarbonize key and hard to abate industries such as transport, steel, and chemicals. At the same time it will contribute to decarbonise the extraction and processing of CRMs. Developing this sector requires a robust value chain encompassing renewable energy generation, green hydrogen production, storage, distribution, and use, including derivatives like methanol, ammonia, and sustainable aviation fuel."}, {"bbox": [85, 1029, 1145, 1137], "category": "Text", "text": "A robust Green Hydrogen sector also includes resolving the water and electricity/energy supply issues that the country faces. This is why the national government and key stakeholders in the country have prioritized (amongst others) to resolve these issues and, in recent months key infrastructure maintenance and upgrades regarding both electricity/energy and water supply has commenced and progressed in South Africa."}, {"bbox": [85, 1160, 1145, 1268], "category": "Text", "text": "South Africa is establishing itself as a global green hydrogen hub, attracting international investments and partnerships that promise economic growth, reducing reliance on fossil fuels and supporting EU and global objectives such as the significant scale up of SAF, including e-SAF for which green hydrogen is necessary – hence referred to as green hydrogen derivative, the large-scale transition of air transport towards SAF and e-SAF"}, {"bbox": [85, 1292, 1145, 1475], "category": "Text", "text": "The country also holds significant reserves of essential minerals, including platinum group metals (PGMs), vanadium, chromium, nickel, and manganese, critical for industrial processes. It has significant unexploited clean energy potential, and modern technology. While mining remains central to South Africa's economy, addressing challenges such as infrastructure deficits, lack of skilled labour, environmental and social concerns, and global supply chain volatility is essential for sustainable growth. Strategic investments in mining technologies, processing, and refining infrastructure can enhance local value addition and maintain the country's competitive edge in global markets."}, {"bbox": [85, 1502, 1145, 1636], "category": "Text", "text": "The automotive sector, contributing 5% of GDP and 15% of export earnings, faces a challenge as the EU and UK ban internal combustion engines by 2035. Transitioning to EV production, including developing a local battery supply chain, or integrating the sector through sourcing batteries in the EU, is crucial for South Africa to continue preferential exports to these regions. Currently dominated by seven manufacturers, including four European firms, the sector's transformation will require significant investment and innovation."}, {"bbox": [1038, 1682, 1144, 1706], "category": "Page-footer", "text": "Page 5 of 31"}]