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President Cyril Ramaphosa will chair an inter-Ministerial committee that is being established to coordinate further work on the country’s just transition plan, as well as the R131-billion climate-finance offer made to South Africa at the recent COP26 climate gathering.

Following a briefing on the outcomes of the Glasgow summit by Forestry, Fisheries and the Environment Minister Barbara Creecy this week, Cabinet welcomed what it described as the “historic Just Transition Partnership” established with France, Germany, the UK, the US and the European Union and announced at COP26.

Cabinet also acknowledged the offer of the partnership to mobilise R131-billion over the next three to five years to support South Africa’s just transition plans.

The political declaration outlining the offer makes provision for the establishment of a task force, comprising representatives from South Africa and the international partners, to finalise the funding mechanism, including the breakdown between grants and concessional loans.

Cabinet agreed this week on the composition of a financial team that will consider the technical aspects of the partnership and offer.

The team will comprise representatives from the National Treasury, the Industrial Development Corporation, the Department of Forestry, Fisheries and the Environment, Eskom and other finance experts.

Speaking on a separate platform on Thursday, Rudi Dicks, who is programme management officer in the private office of the President, said South Africa was preparing to move into the next phase of “fleshing out the details of the offer”.

“It’s going to be a critical area of focus over the next six months as we conclude that deal,” Dicks told participants to a webinar hosted by Trade & Industrial Policy Strategies (TIPS) on financing just transition projects.

Dicks indicated that, while electric vehicle and green hydrogen aspects had been added to that of electricity, there would be a big initial focus on projects in-and-around Eskom’s Komati power station, which is set for full decommissioning in 2022.

He said that Komati could be used as a case study and "we have to get it right if we want to see this cascaded out to other towns that will see similar decommissioning of coal-fired power stations".

TIPS meanwhile is making progress in researching a ‘roadmap towards financing a just transition’, which is focused primarily on securing finance for just-transition interventions in the coal region of Mpumalanga.

An analysis of 26 potential just-transition projects indicates that these lie on a spectrum ranging from low-ambition projects, where the focus is primarily on replacement jobs and reskilling, through to high-ambition interventions, that also seek to integrate economic diversification, broad-based community upliftment and ecological rehabilitation.

Finance for low-ambition projects with high capital costs, such as some of the repowering projects being proposed by Eskom, are likely to be able to secure finance, probably with the help of development finance institutions and climate finance.

Financing high-ambition and smaller-scale projects will prove far more challenging, however, with the financial architecture still largely absent in South Africa for such initiatives.

TIPS expects to publish its final roadmap report in early 2022.

Meanwhile, Cabinet also approved the 'Company-Level Carbon Budget Allocation Methodology' approach for implementation and announced that a mandatory carbon budget system, targeting high-emitting companies, would be implemented in 2023.

"The carbon budgets system will compel high-emitting companies to adopt assigned amounts of greenhouse gas emissions as five-year commitment allocations.

"The carbon budget allocation methodology sets out the scope of mandatory carbon budget implementation and details operational frameworks to be used to calculate and allocate company-level carbon budgets for the first mandatory phase and beyond."

South Africa is firmly on the path to digital migration, said Communications and Digital Technologies Minister Khumbudzo Ntshavheni during a monthly update on the country’s long-delayed transition from analogue broadcasting to digital terrestrial television under the broadcasting digital migration programme.

The department has completed the analogue switch-off (ASO) in the Free State, with zero transmission black-outs recorded, while the last site in the Northern Cape is on schedule for switch off by November 26.

The analogue signals in the North West will be switched off in line with the targets of the first week of December, she added.

Sentech has switched off all 84 Multichoice analogue transmission sites, 113 out of 288 SABC analogue transmission sites and four of the 95 eTV analogue transmission sites.

By the end of October, there were 48 453 new registrations of beneficiary households, which are households earning a salary of less than R3 500 that government committed to assisting with installation of set-top boxes to ensure universal migration, bringing the total number of registered households to 1.28-million, with 572 255 of the registered beneficiary households having been migrated.

Over 30 000 new registrations have been record so far in November.

The qualifying households who registered before October 31 will be connected before the ASO, while households that had registered after the cut-off date will only be connected within three to four months after the ASO.

Developing green hydrogen export capacity at the ports of Saldanha Bay and Ngqura would have decarbonisation spinoffs for nearby hard-to-abate sectors, a new Council for Scientific and Industrial Research (CSIR) study shows.

Produced as a follow-up to an earlier research report that assessed whether South Africa could be competitive in producing green hydrogen and derivative products for export to Europe and Japan, the new study homes in on the domestic offtake prospects at the two ports identified in the initial study as potential export hubs.

That earlier study concluded that South Africa could produce green hydrogen competitively for export into Europe and would be able to meet Japan’s $3/kg cost target before 2030.

The new study does not analyse domestic prospects for the greenfield hydrogen special economic zone being proposed for Boegoebaai, in the Northern Cape, which is being proposed for development as a high-potential hub for the export of hydrogen derivative products to Europe.

Releasing the results during a webinar hosted jointly by EE Business Intelligence and the European Union (EU) Delegation to South Africa, which commissioned the study, CSIR principal research engineer Thomas Roos said the new study included updated calculations reaffirming that green hydrogen could be produced competitively at the two ports.

It also identifies potential domestic offtakers within a 150-km radius of the Port of Saldanha Bay, in the Western Cape, and within a 50-km radius of the Port of Ngqura, in the Eastern Cape.

ArcelorMittal South Africa’s (AMSA’s) mothballed Saldanha Works is earmarked in the study as a potential offtaker, as the Midrex technology at the plant is able to use hydrogen to produce hot briquetted iron (HBI).

AMSA estimates that it would require 104 000 t/y of hydrogen to produce 1.5-million tons yearly.

Using green-hydrogen-derived ammonia as a marine bunker fuel at the ports of Saldanha Bay, Cape Town, Gqeberha and Ngqura could be another significant source of demand, with the study calculating yearly demand at Saldanha Bay and Ngqura alone at 498 000 t and 242 000 t respectively.

Other possible sources of demand could arise from Cape Town’s MyCiti bus service should the city choose to operate a fuel-cell bus fleet in future, as well as to run port equipment at Transnet harbours, or ground vehicles at the nearby airports.

The study concludes that should the bunker fuel and AMSA opportunities materialise, dedicated green hydrogen production would be required, while the balance of the opportunities could be accommodated by the export-focused facilities.

Speaking on the same platform, Boston Consulting Group’s Kesh Mudaly said that South Africa had the solar, wind and land resources to produce more than six-million tons of green hydrogen yearly by 2050, split almost evenly between exports and domestic use.

Reaching such a scale would not only require a massive 130 GW renewables fleet dedicated to supplying a 60 GW electrolyser fleet, which would consume 57 GL of mostly desalinated water yearly, but would also hinge on South Africa adopting a coherent national strategy.

“A nationally coordinated approach and an enabling regulatory environment is critical,” Mudaly said.

EU Ambassador to South Africa Dr Riina Kionka said that green hydrogen imports would be important for Europe’s transition to net-zero carbon emissions by 2050 and that the EU was confident that it could work with South Africa in a way that could also support South Africa’s own decarbonisation.

She stressed that the EU’s participation in the $8.5-billion just energy transition financing facility offer announced at COP26 was designed to support South Africa’s transition, with “full respect for South Africa’s policies and legislation”.

The lion’s share of the facility is expected to be directed towards the electricity transition, but the South African government also plans to use the concessional funds to support the development of the green hydroge...

The new Ranger bakkie – or the new Ranger midsize truck, as it is known in the US – finally broke cover on Wednesday.

Production of the pickup is set to start at Ford South Africa’s Silverton plant in Pretoria next year for the local market, as well as for more than 100 export markets.

The new vehicle, somewhat resembling the US’ top-selling F-150 truck, abides by the trend of the expanded use of bakkies in recent years – it’s no longer just about work, but also about play.

The next-generation Ranger project was led by Ford’s Product Development Centre in Australia.

The bakkie’s design features a new square grille, as well as C-clamp headlights at the front. For the first time, the Ranger also offers matrix LED headlights.

Beneath the new bodywork, the upgraded chassis rides on a wheelbase 50 mm longer and a track 50 mm wider than the previous Ranger.

A hydro-formed front-end structure creates more space in the engine bay for a new V6 engine and helps future-proof the Ranger for other propulsion technologies, such as plug-in-hybrid technology.

It also opens up the front of the pickup to allow more airflow to the radiator, which helps keep running temperatures low when towing or carrying heavy loads, says the US car maker.

In order to ease access to the load bin, Ford has created an integrated side-step behind the rear tires of the vehicle.

In addition, the Ranger team worked to ensure that a wider variety of cargo could fit and stay secure in the load box, by widening the truck by 50 mm.

This means that customers will be able to load flat items such as a sheet of building plywood or a full-size pallet into the bin.

Other touches include a new plastic-moulded bedliner that helps protect the truck bed from scratches.

In addition, Ranger offers a new cargo management system designed with dividers to hold various-sized items, such as timber or toolboxes.

Owners also can create smaller compartments to store objects, which would otherwise have to go in the cab, using a system of spring-loaded cleats that clip into rails bolted to each side of the cargo box.

The tailgate can also double as a mobile work bench with an integrated ruler and clamp pockets to measure, grip and cut building materials.

Zone lighting provides 360-degree lighting around the truck to help give customers better visibility around the vehicle.

Load-box lighting is provided under the left- and right-hand rails.

As noted earlier, the new Ranger adds a 3-l V6 turbodiesel engine as one of three turbodiesel engine options available at launch, depending on the market.

The next-gen Ranger will also come with a choice between a single-turbo and a bi-turbo 2-l inline four-cylinder diesel engine.

In addition, the bakkie will be available with a 2.3-l EcoBoost four-cylinder petrol engine.

New transmission choices include an updated ten-speed auto or six-speed manual, complementing the current six-speed automatic.

Customers will also have a choice of two four-wheel drive systems: an electronic shift-on-the-fly system, or a full-time 4 x 4 system with a set-and-forget mode, designed for off-road capability when and where customers need it.

Inside the Ranger, the heart of the connective experience is the 10.1-inch or 12-inch portrait touchscreen in the centre stack.

It complements a fully digital instrument panel and is loaded with Ford’s SYNC4 system, which comes customer-ready with voice-activated communications, entertainment and information systems.

Additionally, there’s an embedded factory-fitted modem, allowing connectivity on the go when linked with the FordPass App, so customers can stay connected.

FordPass enhances the ownership experience with features like remote start, vehicle status check and remote lock and unlock functions via a mobile device.

Many of the traditional driving mode controls have been moved from the dash and centre console to their own dedicated display on the SYNC screen, where drivers can go to a dedicated screen for all off-road and drive mod...

Building materials and solutions provider PPC delivered a solid performance for the six months ended September 30 against generally challenging conditions, supported by the significant progress made in achieving the company’s strategic objectives which saw it capture volume growth, improve cost competitiveness and generate strong cash flows, CEO Roland van Wijnen has told Engineering News.

He lists the challenges as the slow vaccine rollout and uptake in some regions, although this was now improving; and difficult economic conditions as a result of the pandemic, which was also improving.

As a result of the capital restructuring and refinancing project, PPC Barnet continues to be reported as a discontinued operation.

Group revenue increased by 20% to R5.1-billion, benefiting from a 12% increase in cement sales volumes and the positive impact of hyperinflation on PPC Zimbabwe’s financials.

Excluding PPC Zimbabwe, revenue growth was 12% and, relative to the same period in 2019, growth of 7% shows an improvement on pre-Covid-19 levels.

Cost of sales increased by 24% to R4-billion taking Zimbabwe-related hyperinflation into account.

Excluding this, cost of sales increased in line with cement volumes, which PPC says demonstrates good control of costs, which have generally increased significantly owing to high input cost inflation of 9.2%.

Group earnings before interest, taxes, depreciation and amortisation (Ebitda) ended the period 13% higher at R945-million, while group operating profit increased by 10% to R633-million.

Excluding PPC Zimbabwe, Ebitda was 28% higher and, relative to 2019, 23% higher.

Taking fair value adjustments, profits on disposals and hyperinflation into account, group headline earnings increased to R786-million and group basic headline earnings per share (HEPS) rose by 83% to 55c.

Cash generation was strong and PPC continued with its efforts to degear the group balance sheet, settling a further R309-million in debt.

As part of the group’s capital restructuring efforts, a net profit of R189-million was realised on the disposal of PPC Lime and PPC Botswana Aggregates.

“The capital restructuring is nearing completion and we have successfully removed the need for an equity capital raise. We continue to deliver on our promise of degearing the balance sheet and have used the proceeds from the sale of PPC Lime and Botswana to reduce debt further after the reporting period,” said CFO Brenda Berlin.

South Africa and Botswana Cement experienced continued strong retail demand, which saw cement sales volumes increase by 12% to 15%, and by 3% to 6% relative to 2019.

Sales to the retail and rural segments continued to outpace other segments of the market. In line with the biannual price review, selling prices were raised to partially offset input cost inflation and an increase of 4% to 8% was realised for the period.

Revenue increased by 17% to R2.8-billion and Ebitda rose by 53% to R515-million, while the Ebitda margin increased from 14.3% to 18.7%. Relative to 2019, Ebitda was 40% higher and Ebitda margins increased by 4.4%.

PPC estimates that cement and clinker imports increased by 30% year-on-year for the nine months ended September 30, and forecasts that imports will account for about 10% of total industry volumes by the end of the year.

PPC, together with Cement & Concrete SA and other industry players, is awaiting a decision from the relevant authorities regarding an application (updated to include both cement and clinker) that seeks relief against what it says is unfair competition in the form of import tariffs.

Van Wijnen said the recent designation of locally produced cement for all government-funded projects was welcome news. He said this would have a positive impact on the industry, and would benefit PPC in terms of improved sales, depending on how well the government enforces it and the speed of its infrastructure project rollout.

He pointed out that, not only does locally produced cement provide jobs in the ...

The Namibian government may release a second request for proposal (RFP) early next year for the development of another large-scale green-hydrogen complex, having announced a preferred bidder for the first such project in early November.

Presidential Economic Adviser James Mnyupe told delegates to the virtual Africa Green Hydrogen Forum on November 23 that Namibia may make an announcement on the new RFP at the World Economic Forum, scheduled to take place in Davos, Switzerland, from January 17 to 21.

Namibia used the side-lines of the COP26 climate gathering to announce that it had selected a preferred bidder for a $9.4-billion green hydrogen project to be developed in the Tsau//Khaeb National Park, near the coastal town of Luderitz, in southern Namibia.

The concession announcement followed a competitive tender process under its Southern Corridor Development Initiative, a core feature of government’s Harambee Prosperity Plan II, launched by President Hage Geingob in March as the country’s official economic recovery plan from Covid-19.

The plan seeks to develop “new and diversified frontiers of growth” including in the green economy and by September nine commercial green-hydrogen proposals had been received from six developers in response to an RFP issued by Namibia in June.

Namibia made 5 700 km2 of land available for the concession and sought bidders that could best meet its economic and social criteria through building the assets needed to produce green hydrogen, green ammonia and synthetic fuels in the concession area.

In early November, Namibia announced that HYPHEN had been selected as the preferred bidder to build a vertically integrated project able to produce 300 000 t/y of green hydrogen and green ammonia for export into regional and global markets from 2026 onwards.

Mnyupe said the Namibian government intended holding 24% of the equity in the facility, but that it was still assessing its funding options, including the raising of possible concessional finance and green bonds.

It was also possible that the stake would be divided between some of the countries State-owned enterprises, while work was also under way to establish a sovereign wealth fund, which would invest proceeds from the project.

The Namibian government saw the initial hydrogen project as a potential “spark” for the broader industrialisation of Luderitz, where green zinc, green fertiliser and green rail opportunities could also be pursued, along with the sale of renewable electricity into the Southern African Power Pool.

Mnyupe indicated that similar initiatives could be rolled out to other parts of Namibia, including in the Erongo and Kunene regions.

In a separate presentation HYPHEN’s Dr Tobias Bischof-Niemz reported that detailed feasibility and environmental studies had already been conducted, with particular emphasis on limiting the environmental impact in the sensitive area, with certain no-go zones having been identified.

The wind turbines to be introduced as part of a renewable-energy mix that would combine both wind and solar photovoltaic generators would also require purpose-built blades to accommodate the intense winds that prevailed in the area. Discussions had been initiated with original equipment manufacturers to assess prospects for the domestic manufacture of these blades.

Once both phases were complete, the project would involve 5 GW of renewable electricity and 3 GW of electrolysis, which would split desalinated water into hydrogen and oxygen.

The desalination plants would be over-sized so as to supply potable water to Luderitz, which has a current daily water demand of 3 000m3.

HYPHEN, which is a JV between ENERTRAG South Africa and Nicholas Holdings Limited, is also proposing the development of a new port, to cater for exports to Europe, starting with the export of green ammonia.

Given Namibia’s world-leading combination of wind, sun and land, Bischof-Niemz believes there is realistic potential for the country to secure 5% of globa...

Diversified group Barloworld is finally reaping the rewards of an extensive restructuring process.

Announcing its financial results for the year ended September 30, the group saw operating profit from continuing operations improve by 119% year-on-year to R4.3-billion.

Revenue from continuing operations was up 22.5%, to R41.6-billion, with this number inclusive of a combined contribution of R6.6-billion from the newly acquired Equipment Mongolia and Ingrain businesses.

Barloworld says the integration of these acquisitions into the group is progressing well and that they are delivering ahead of initial expectations.

The group also benefitted from the performance of the Southern African and Eurasia Equipment businesses, and the turnaround of the car rental business.

Equipment Southern Africa, still the biggest revenue and profit contributor to the group, delivered a record operating margin of 10.7%, despite overall trading activity being at 89.2% of pre-pandemic levels.

Operating profit for this business was R1.95-billion, up from R1.2-billion in the previous year.

The Equipment Eurasia business unit built on its strong start to the year, delivering a 17% jump in revenue performance in the second half of the financial year.

Operating profit increased to R1.2-billion for the financial year, up from R834-million.

Barloworld’s new Consumer Industries business, Ingrain, recorded operating profit of R534-million for the 11 months it was included in the Barloworld fold.

Recovery in sales volumes and improved margin realisation driven by higher international agriculture commodity prices benefitted the results.

The Car Rental and Leasing business saw positive results from unlocking synergies and value through the integration of the car rental and Avis fleet businesses.

Avis Budget’s repositioning strategy towards off-airport business yielded results, particularly in the growth of the subscription products, with longer length rentals and lower direct costs.

As part of its restructuring process, Barloworld exited its motor retail business during the period under review and the board approved a formal disposal process to exit the logistics business after receiving a number of expressions of interest.

The group is now negotiating the piecemeal disposal of various sections of the logistics business in response to high levels of interest in smaller business units.

In light of this approach, Barloworld has entered into sale agreements for its controlling interest in Aspen Logistics and the shares in subsidiaries which own Manline Energy, Manline Freight and Timber 24.

These two agreements cover the bulk of the assets within the Barloworld Transport business. The agreements remain subject to regulatory approval.

Barloworld CEO Dominic Sewela says Barloworld has pivoted its portfolio towards defensive, relatively asset-light and cash-generative industrial sectors, based on a business-to-business operating model.

“Notwithstanding the challenging environment, Barloworld delivered an impressive set of results,” he notes.

“I am pleased that the decisions we have made in the past have been value accretive to shareholders and have positioned us to remain agile in a changing operating environment.”

Looking ahead, the outlook for the year remains positive, with this sentiment driven by the performance of the Industrial Equipment and Services businesses.

Equipment Southern Africa’s order book remains strong, supported by a buoyant outlook for the mining sector.

The construction industry is also expected to recover as infrastructure and energy projects gather momentum.

Equipment Eurasia’s outlook for 2022 remains positive as the recovery in the coal market is expected to continue, and further benefits are expected from the integration of Mongolia into the Eurasia division.

For Ingrain, the outlook is good as maize prices are expected to trade closer to international prices, which will support margins going forward.

Barloworld also expects international ...

As Eskom and the National Energy Regulator of South Africa (Nersa) head for another legal showdown, attention has turned to the legality and practicality of the regulator’s “preferred option” and timetable for ensuring that a tariff determination is made in time for implementation on April 1 next year.

In a letter to Eskom, dated November 12, Nersa outlined four options, including:

the Energy Regulator and Eskom agreeing, under Option 1, on pricing principles, then consulting with the public using the agreed principles to settle on a percentage increase;

Eskom and the Energy Regulator reaching an agreement, under Option 2, on a percentage increase and then consulting the public on that agreement;

Determining, under Option 3, a percentage increased as part of a court-ordered settlement, in lieu of the R59-billion still owed to Eskom; or

Option 4, which involves using the pricing ‘principles’ currently under consultation to determine trading tariffs for Eskom’s generation, transmission and distribution units, which are in the process of being restructured into separate businesses.

Nersa has indicated that ‘Option 4’ is its preferred remedy, arguing that such an approach would be premised on the principles that would inform a future multiyear price determination (MYPD) methodology.

Those principles are currently the subject of a public consultation process, which Nersa says will be finalised by November 29.

No new methodology has been consulted or agreed, even though the regulator has stated that the MYPD4 methodology, on which Eskom’s MYPD5 application is based, has expired.

Eskom made its MYPD5 submission, which covers the three financial years from 2022/23 to 2024/25, on June 2.

On September 30, however, the Energy Regulator rejected the submission and, on October 5, indicated that only a single-year application would be considered for 2022/23, “preferably based on the principles of the revised MYPD5 methodology”.

Eskom then approached the Gauteng High Court to have the regulator’s decision to reject its revenue application set aside for being “patently irrational and unlawful”.

“It is wholly irrational for Nersa now to expect Eskom to make a fresh application in terms of as yet undisclosed principles that may or may not inform a new methodology that may or may not be adopted at some stage in the future,” Eskom said in a founding affidavit deposed by CFO Calib Cassim, who described it as a “Kafkaesque state of affairs”.

In an answering affidavit, Nersa full-time regulatory member Nhlanhla Gumede argues that the current MYPD methodology was developed for the determination of tariffs for the period ending on March 31, 2022 “and not beyond” and that Eskom’s MYPD5 application was, thus, submitted “prematurely”.

“Eskom could have been under no illusion as to Nersa’s view regarding procedure. Their feigned surprise at the decision made on 30 September 2021 is therefore not understood,” Gumede states.

Eskom’s MYPD5 application, he adds, does not reflect the restructuring of Eskom into three separate divisions and can, thus, not achieve an “activity based” tariff determination.

The Nersa affidavit argues that ‘Option 4’ can be implemented by early March as would be required for Parliamentary approval, as it does not require Eskom to “reinvent the whole application”.

“[Eskom] would just need to repackage or adjust their existing application in a manner that satisfies the principles approved by the regulator: the historical costs will still be the same costs as in the present application.

“Future expenditure will be divided into various divisions. The interrelationship of the divisions, whether separate corporate entities or not, will have to be determined and considered.”

In his replying affidavit, Cassim argues that Nersa is intent on embarking on a process that is “manifestly unlawful”, because it can be completed only by defying provisions of the Municipal Finance Management Act (MFMA).

Cassim notes that the position outlined in ...

Energy and chemicals group Sasol aims to begin producing 6 t/d of green hydrogen at its facility in Sasolburg by 2023, VP for climate change Shamini Harrington reports.

In a presentation delivered during the Africa Green Hydrogen Forum, Harrington said that the green hydrogen would be produced using a combination of 60 MW of renewable electricity and existing assets, including existing electrolyser assets.

Green hydrogen is produced using renewable electricity to split water, through an electrolyser, into hydrogen and oxygen.

The hydrogen would be used in established domestic value chains in industry and heavy-duty transport, as well as to provide back-up electricity generation.

Harrington said the JSE-listed group aimed to use the projects to incubate local demand for green hydrogen and to position South Africa to participate in the global export market for green hydrogen and derivative products.

At its larger complex in Secunda, Sasol would seek to progressively repurpose the facility to produce sustainable products, including sustainable aviation fuels (SAF).

An initial 400 MW of renewable electricity would be developed to support the production of the green hydrogen required to produce 15 000 t/y of SAF through its Fischer-Tropsch process.

By 2040, Harrington’s presentation showed, 15 GW could be deployed to produce SAF at a yearly rate of 2.5-million tons.

In parallel, Sasol would pursue greenfield projects in the South Africa and Namibian “solar belt”, including within a special economic zone to be developed at Boegoebaai, in the Northern Cape, and 20-km south of the Namibian border.

Dubbing it a “lighthouse project”, Harrington said Boegoebaai could emerge as a green hydrogen products hub capable of producing 400 000 t/y of product.

Developing a hub of such scale would require an investment of $10-billion, including in 9 GW of renewable-energy generation.

Earlier this month, the Namibian government announced the selection of a preferred bidder for the phased development of a $9.4-billion green hydrogen project to be developed in the Tsau //Khaeb National Park, near the coastal town of Luderitz, in southern Namibia.

The preferred bidder, known as HYPHEN, will now finalise the studies required for the building of a vertically integrated project able to produce 300 000 t/y of green hydrogen and green ammonia for export into regional and global markets from 2026 onwards.

Harrington said that collaboration and partnerships would be required if South Africa is to take advantage of the emerging green hydrogen opportunity in a context of increasing competition.

North African countries are well positioned to capitalise on the opportunity in light of their proximity to Europe and their similar access to low-cost renewable electricity and land.

She said that green financing, including from development finance institutions, would be important for stimulating catalytic projects.

Three Sasol hydrogen projects have been shortlisted for funding by German development bank KfW.

However, South Africa would also need to create a supportive regulatory and policy environment to enable the development of the nascent industry.

The Industrial Development Corporation’s Rian Coetzee reported that progress was being made on a green hydrogen commercialisation strategy.

He reported, too, that the IDC was paying a central role in helping to forge consensus among the social partners on a Green Hydrogen Masterplan, which was seen as important to building the industrial capacity needed to position South Africa as a global hydrogen production hub.

The Independent Communications Authority of South Africa (Icasa) has temporarily suspended the licensing timetable for the release of the Wireless Open Access Network (Woan) spectrum.

Reviewing the licensing timelines, issued on October 1, the authority said that the suspension is to allow the high-demand spectrum permanent licensing consultation process to be completed and enable Icasa to “interrogate the impact of the outcomes on the licensing of the Woan.”

Icasa was due to publish the envisaged Woan consultation document on November 19, a decision it retracted amid the sensitivity of the spectrum licensing process, the ongoing consultation processes in that regard and the numerous continuous related considerations including legal imperatives.

As the consultation processes for the licensing of International Mobile Telecommunications (IMT) spectrum progresses, with the second round of consultation underway after the publication of an updated Information Memorandum on November 16, Icasa will, in the intervening period, engage other international jurisdictions to draw lessons from their experiences on the licensing of a typical Woan.

“There is a compelling reason to revise this tactical approach with regards to the Woan process,” explained Icasa chairperson Dr Keabetswe Modimoeng.

“This Woan licensing process is aimed at introducing an additional credible player with a view to promote competition in the information and communication technologies sector for the benefit of all South Africans. Therefore, it is very important to enhance our knowledge and develop a holistic approach to the Woan process. Such additional engagements will provide a clearer guidance in terms of how effective and economical this licensing process will be.”

Icasa now aims to publish a notice by no later than March 2022 advising of the Woan licensing process to be followed, based on the outcomes of further engagements, subsequent analysis of the model and the findings from the IMT spectrum consultation processes.

“There will still be radio frequency spectrum set aside for the Woan even as the auction is taking place, and the authority is of the view that the licensing of the Woan will indeed bring much-needed structural reform to the mobile voice and data services markets,” concluded Modimoeng.