Overview of Hydrogen Energy Development in China and Africa

Type: Overview/Comparison Duration: 20 minutes On September 14, 2022, the China-Africa Hydrogen Forum—a pre-event of the International Hydrogen Fuel Cell Vehicle Conference and Exhibition 2022 (FCVC 2022), jointly organized by the International Hydrogen Fuel Cell Association and the Society of Automotive Engineers of China—was successfully held. The forum was specially supported by Anglo American plc. Based on presentations delivered by forum speakers, this summary outlines the development of hydrogen energy industries in China and Africa. 01. Current Status and Trends in Energy Structure ・China China’s low-carbon energy transition follows a trajectory from high-carbon to low-carbon, and ultimately to zero-carbon energy sources. In 2020, non-fossil energy accounted for 15.9% of China’s total energy mix; this share is projected to reach 27% by 2035 and 80% by 2060. By 2060, renewable energy will dominate China’s power generation capacity, which is expected to grow from the current 934 GW to 3,400 GW. ・South Africa Sasol—the largest South African provider of chemical and energy solutions—is pursuing a low-carbon development path characterized by: ・Reducing reliance on coal; ・Transitioning toward cleaner fuels; ・Shifting toward lower-carbon operations. Natural gas serves as a critical transitional fuel, while renewable energy and green hydrogen are central to Sasol’s long-term strategy. Sasol’s decarbonization pathway reflects, to a significant extent, the broader direction of South Africa’s future energy structure. 02. Future Potential of Hydrogen Energy ・China Hydrogen plays a pivotal role in decarbonizing both the energy supply side and end-use sectors—including transport, industry, heating, and power generation. On the supply side, China is projected to install 4.81 billion kW of wind and solar power capacity by 2060, generating 7.9 trillion kWh annually; surplus electricity could produce 10–15 million tonnes of hydrogen per year. Considering that 50% of China’s five western provinces could host up to 2.4 billion kW of wind and solar capacity by 2060, their surplus generation could yield 5–7.5 million tonnes of hydrogen annually. On the demand side, with the deepening implementation of China’s five national fuel cell vehicle demonstration clusters, fuel cell vehicles are accelerating rapidly. Hydrogen holds broad application prospects in heavy- and long-haul trucks, combined heat and power (CHP), coal-based chemical production, and hydrogen-based metallurgy. Moreover, green hydrogen-derived ammonia can serve energy, agricultural, and food sectors. China’s abundant renewable resources for hydrogen production will drive decarbonization across transport, industry, heating, and power sectors. ・South Africa South Africa possesses exceptionally rich renewable energy resources and holds over 75% of the world’s platinum group metal reserves. Boegoebaai—a future global hydrogen hub—has formulated an integrated hydrogen society development plan, including solar and wind parks, electrolyzer manufacturing zones, seawater desalination plants, green ammonia production facilities, and storage infrastructure for green hydrogen and green ammonia. South Africa’s abundant renewable-energy-based hydrogen production will facilitate decarbonization across transportation—including heavy-duty trucks, shipping, rail, and aviation—as well as energy-intensive industries such as steel, chemicals, mining, refining, and cement. This supports South Africa’s vision of achieving a sustainable, competitive hydrogen economy by 2050. 03. Priority Development Areas ・China The Ministry of Science and Technology’s key hydrogen technology projects and innovation initiatives follow a “three-horizontal, three-vertical, three-tiered” interdisciplinary integration framework. Emphasis is placed on: ・Green hydrogen production and large-scale transfer systems; ・Safe hydrogen storage and rapid distribution systems; ・Systematic approaches to green hydrogen production and efficient utilization; and the expansion of comprehensive pilot projects.

Major Collaboration on Green Hydrogen in South Africa! Sasol Joins Forces with Envision Energy to Develop E-Methanol, Targeting Europe’s SAF Market

South African energy and chemical giant Sasol has signed an engineering design agreement with Chinese green technology company Envision Energy to launch design studies for the Sasolburg E-Methanol Project, advancing industrial deployment of green hydrogen, e-methanol, and sustainable aviation fuel (eSAF). This collaboration not only signals an acceleration of South Africa’s energy transition but also reflects how Chinese new-energy technology enterprises are increasingly participating in the construction of the global green industrial value chain. Green Hydrogen Project Launch: Chinese Enterprises Join South Africa’s Low-Carbon Transition On August 5, Sasol and Envision Energy signed the agreement at Envision’s Zero-Carbon Industrial Park in Chifeng, Inner Mongolia. Under the agreement, Envision Energy will design a green hydrogen system for Sasol’s Sasolburg production base in South Africa’s Free State Province. The system will integrate renewable energy, energy storage, and electrolyzer technologies to enable cost-competitive green hydrogen production—supplying feedstock for e-methanol and future eSAF. The project is currently in the engineering design phase and is expected to complete its feasibility studies by October this year, providing technical and commercial foundations for subsequent investment decisions. European Demand Drives Rapid Expansion of the E-Fuel Market This collaboration coincides with surging global demand for low-carbon fuels. As markets such as the European Union intensify aviation emissions-reduction policies, e-methanol and eSAF are emerging as critical alternative fuels for hard-to-abate sectors—including aviation and maritime transport—and command substantial market premiums.

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