Premier
With regard to the memorandum of understanding (MOU) signed with the Northern Cape, as announced in the State of the Province Address (SOPA): (1) (a) What are the details of this MOU and (b) can a copy be made available; (2) with regard to the work that his government is doing with partners and the Northern Cape government in the drive for green hydrogen (GH2), as reported in the SOPA: (a) what are the details and purpose of the GH2 hub and corridor and (b) what is the (i) detailed list of all the stakeholders involved and (ii) role of each stakeholder and (c) what is the total (i) budget for and (ii) expenditure on the GH2 drive; (3) whether the national government was involved in the agreements signed with international partners, such as the Namibian government, to make optimal use of the potential of green hydrogen in the region; if not, why not; if so, (a) what are the relevant details and (b) what is the detailed list of all the international partners involved?
((1)(a) “Heads of Agreement” between the Western Cape Government and the Northern Cape Government were signed by Premier Saul and myself on 28 November 2022 on the margins of the Green Hydrogen Summit, which was hosted by the Presidency and Infrastructure South Africa in Cape Town.
(b) The Heads of Agreement contain a confidentiality clause. I would like to consult the Premier of the Northern Cape on this matter.
(2) (a)The purpose is to develop the opportunities in the Green Hydrogen (GH2) economy, as per market demand by major developers to produce GH2 via electrolysis for local consumption (e.g. heavy transport and steel production) as well as export (e.g. bulk green ammonia exports). The Freeport Saldanha Industrial Development Zone (FSIDZ) is envisaged to be a hub for GH2, while a corridor is envisaged between the Western Cape and the Northern Cape (from Saldanha Bay to Boegoeberg se Baai in the Northern Cape).
- (i) and (ii)The Western Cape Coordination Work Group currently has representation from Wesgro, FSIDZ, Atlantis SEZ, Provincial Treasury, the Department of Economic Development and Tourism (DEDAT), the Department of the Premier (International Relations) and the Saldanha Bay Municipality.
The Work Group members are working as a team and the specific roles of the entities vary greatly and are not pre-defined, but rather linked to the mandates of the organisations, e.g. Wesgro – investment promotion, Freeport Saldanha – investor facilitation and the Department of the Premier - International Relations.
The broader stakeholder environment is very wide and includes:
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- International financing organisations and public sector linkages (at country level [e.g. Spain, the UK] and regional level, e.g. the EU)
- Private developers ((as announced at the Presidential Summit last year, including Sasol, AMSA, Mainstream Power, as well as many other proposed projects)
- The skills environment, including the DEDAT Skills Unit and some of the SETA’s
- National linkages with the Department of Trade, Industry and Competition (DTIC), the Industrial Development Corporation (IDC) (Commercialisation Strategy) as well as Infrastructure South Africa (ISA), the Council for Scientific and Industrial Research (CSIR), Promoting a South African Green Hydrogen Economy (H2.SA) and the Department of Science and Innovation
- Businesses – responses to questions by local businesses and the local community
- (i) The budget allocations for the financial year are as follows: A direct allocation of R5 million for Green Hydrogen Development to Freeport Saldanha and Wesgro, as well as a portion of R6.7 million from DEDAT’s budget also allocated to Green Hydrogen.
(ii) The only expenditure on Green Hydrogen was for hosting “Saldanha Day” as part of the Presidential Summit, which amounted to R328 264 during the 2022/23 financial year. No expenditure has been incurred for the 2023/24 financial year.
- (a) The Presidency/ISA indicated that discussions are underway between South Africa and Namibia towards the conclusion of an agreement. It is understood that Green Hydrogen is among the topics being discussed.
(b) International stakeholders include: GIZ (the German International Cooperation agency), the European Investment Bank (EIB) and a number of other EU member states (e.g. the Netherlands, Spain), the UK, the US Trade Development Agency, Namibia, etc.
