1

CONTENT

CHAPTER ONE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.1 Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 1

1.2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

1.3 Aim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

1.4 Problem Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

1.4.1 Major problem

1.4.2 Mnor problem

1.5 Objectives of the research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

CHAPTER TOW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.2 Literature Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER THREE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...3

3.1 Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER ONE
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 1.1 Abstract

Green hydrogen produced with renewable energy is indispensable for the decarbonisation of
economies, especially concerning "hard-to-abate" activities such as the production of steel,
cement and fertilisers as well as maritime transport and aviation. The demand for green hydrogen
is therefore booming. Currently, green hydrogen is far more expensive than fossil fuel- based
alternatives, but major initiatives are underway to develop a global green hydrogen market and
bring costs down. Green hydrogen is expected to become cost-competitive in the mid-2030s.

Given their endowment with solar and wind energy, many countries in the Global South are
well- positioned to produce low-cost green hydrogen and are therefore attracting investments.
Whether and to what extent these investments will create value and employment for and improve
environmental conditions in the host economies depends on policies. This discussion paper
analyses the potential industrial development spillovers of green hydrogen production,
distinguishing seven clusters of upstream and downstream industries that might receive a
stimulus from green hydrogen. Yet, it also underlines that there is no automatism. Unless
accompanied by industrial and innovation policies, and unless there are explicit provisions for
using revenues for a Just Transition, hydrogen investments may lead to the formation of socially
exclusive enclaves.

The paper consists of two parts. Part A provides basic information on the emerging green
hydrogen market and its technological ramifications, the opportunities for countries with
abundant resources for renewable energy, how national policies can maximise the effects in
terms of sustainable national development and how this can be supported by international
cooperation. Part B delves into the specific case of South Africa, which is one of the countries
that has an advanced hydrogen roadmap and hosts several German and international
development projects. The country case shows how a national hydrogen strategy can be tailored
to specific country conditions and how international cooperation can support its design and
implementation.

Keywords: Green hydrogen, energy transition, industrial development, industrial policy, South
Africa, Just Transition, technological learning, international cooperation

CHAPTER ONE
‫ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ‬

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 1.2 Introduction

Although hydrogen is the smallest molecule in the universe, it has huge potential as a clean fuel
that can be used to drive the global energy transition. On this basis, we highlight the most
prominent indicators and cognitive information about hydrogen, its importance, uses, and global
demand for it, as one of the pillars of the future of clean, green, sustainable energy, regionally
and globally, and one of the competitive options in the field of future global energy mix
transformations. As hydrogen has become one of the global solutions proposed for the year 2020
AD aimed at reducing emissions Carbon emissions and reaching zero carbon neutrality by 2050
AD. Therefore, hydrogen is considered one of the distinctive energy sources in that it is a
suitable source as a fuel through its contribution to the process of energy transformation or
transfer and storage. This is what makes it one of the basic components in energy production. A
circular carbon economy that accelerates the transition to the cleanest and most sustainable fuels.

Figure 1. Categorisation of hydrogen according to the origin of its energy input and emission
intensity. Adapted from Castro et al. (2016).

The global export of hydrogen is considered one of the components and opportunities available
to the Gulf Cooperation Council countries to be one of the most important centers for the
production, transportation and distribution of hydrogen, which is an economic and environmental
revolution in the world of renewable energy. Clean and sustainable, and it can be noted here that
the GCC countries possess great capabilities and competitive advantages that qualify them To be
a promising leading market in the hydrogen industry, through the presence of a huge
infrastructure for oil and gas supplies. The GCC countries have also succeeded in facing the
challenges of the global energy market during the past fifty years through the oil and natural gas
industry, and it has Extensive experience in producing gray hydrogen from fossil fuels
Moreover, the GCC countries are characterized by low costs of renewable energy, due to the
large availability of natural resources in this area (through the availability of the best locations

4
 for solar radiation in the world – and the presence of sufficient wind energy resources). It is also
distinguished by its strategic geographical location, complete infrastructure and proximity to
international ports, in addition to the fact that the cost of hydrogen production in the Gulf
Cooperation Council is the lowest regionally compared to global regions. It is also distinguished
by its strategic trade relations with several emerging markets. And promising, most notably the
European and Asian markets, which represent the possibilities The most important source of
investment in hydrogen production and export.In addition to the trend practiced by the GCC
countries towards increasing competitiveness in the global hydrogen economy related to the field
of international cooperation and partnerships specialized in hydrogen projects and investments
through the conclusion of many bilateral agreements and national and international alliances in A
future of clean, sustainable energy.

This report is not a prediction – rather, it is a plausible scenario for how this new energy
transition will be achieved based on some of the latest reliable data, assessments, and regulatory
and policy developments.

CHAPTER ONE
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1.3 AIM

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 Green hydrogen is of great importance in several aspects as follows:

First: Hydrogen can reduce emissions from industries that are difficult to decarbonize, such as
the steel industry and the cement industry, which require huge amounts of heat, as these
industries currently depend on fossil fuels to produce the required heat. The recent
announcement by SAAB, the Swedish automobile manufacturer, about purchasing green steel
(steel made using the heat of hydrogen), confirms for the first time that steel smelters can operate
100% on hydrogen. Therefore, such a step will place green steel in the rank of Higher for
manufacturers who care about the carbon footprint of their products.

Second: Hydrogen can maximize the economic return from renewable energy resources,
especially in places where natural gas resources will be exhausted. It will allow excess
renewable energy to be used to produce hydrogen as an alternative to natural gas.

Third: Hydrogen's industrial applications are varied through its use as a feedstock in the
chemical industry, such as ammonia, or as an agent to operate many processes, such as removing
sulfur from crude oil in refineries.

Fourth: Hydrogen can provide energy security in two basic dimensions, one as a solution to the
intermittency of renewable energy sources and the second as an alternative to the decline of
natural gas resources in countries that depend on natural gas and that have established natural gas
infrastructure.

Figure 2. Forecast merchant prices of renewable hydrogen and subsidies needed to

achieve
cost-parity with conventional hydrogen from fossil fuels. The highest cost of each bar
represents electrolytic hydrogen produced from grid power, and the lowest cost is from
solar
.(PV. Adapted from: BNEF (2019) and Velazquez Abad and Dodds2017 ).

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 CHAPTER ONE

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‫ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ‬
1.4 Problem statement

Despite its enormous potential, hydrogen faces several critical challenges that hinder its
widespread adoption and full impact. These challenges are critical and cannot be easily
eliminated.

.14 1. Major problem

High production cost, as the green hydrogen production process requires largest energy,
advanced technology and high expenses.

.14 2. another problem

1.Safety Issues: Hydrogen is a highly volatile and flammable element, requiring strict safety
measures .

2. Hydrogen Storage: Storing hydrogen can be a challenge due to it being a highly explosive
gas.

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CHAPTER ONE
‫ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ‬

1.5 Objectives of the research

1- Using renewable energy sources to generate electricity.

2- Accelerating renewable energy generation (which will further reduce the already low cost of
renewable electricity).

3. Scaling up sustainability, modern bioenergy needed, among other things, to produce green
fuels that require carbon dioxide

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CHAPTER TWO
‫ـــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ‬
2.1 Introduction

Green hydrogen is one of the most promising clean energy sources, as it produces no carbon
emissions when burned. It can be used in a variety of applications, including generating
electricity, powering vehicles, and producing heat .

2.2 Literature Review

In 1923, the German scientist Heinrich Fischer and Karl Portenus published the
first study on the possibility of producing hydrogen using solar energy. In 1970, the
U.S. government established a research program to develop green hydrogen.
A 2022 study by the Institute for Renewable Energy at the University of California,
Berkeley, concluded that the cost of producing green hydrogen could drop to $1.5
per kilogram by 2030.
A 2021 study by McKinsey Company concluded that the green hydrogen market
could reach $10 trillion by 2050.
Previous Studies on Green Hydrogen

Green hydrogen, produced using renewable energy sources for electrolysis, has gained
significant interest as a clean and sustainable fuel. Several studies have been conducted to
explore its potential applications, feasibility, and challenges. Here are some notable examples:

Production and Technology:

• H2FUTURE project (2011-2015): Evaluated the technical and economic feasibility of
large-scale green hydrogen production and infrastructure development in Europe.
• Electrolysis for Hydrogen Production (2014-2017): Investigated novel electrolysis
technologies to improve efficiency and reduce costs.
• The Power-to-Gas Technology Roadmap (2015): Developed a roadmap for the
implementation of power-to-gas technology, including green hydrogen production.
• Sun-to-Fuel (2016-2020): Demonstrated the feasibility of using concentrated solar power
for large-scale green hydrogen production.

Applications and Feasibility:

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 • Pathways to a Hydrogen Economy (2004): Explored the potential of hydrogen as a future
energy carrier and its impact on the global energy system.
• The Role of Hydrogen in the Energy Transition (2017): Analyzed the potential of green
hydrogen in various sectors, including transportation, industry, and power generation.
• Hydrogen for a Clean Economy (2019): Assessed the economic potential of green
hydrogen and identified key barriers to widespread adoption.
• The Future of Hydrogen (2020): Projected the future demand for hydrogen and
highlighted the role of green hydrogen in achieving global climate goals.

Environmental Impact and Sustainability:

• Life Cycle Assessment of Hydrogen Production (2018): Compared the environmental
impact of different hydrogen production methods, highlighting the benefits of green
hydrogen.
• Hydrogen and Climate Change (2019): Quantified the potential of green hydrogen to
reduce greenhouse gas emissions and mitigate climate change.
• The Hydrogen Economy and Sustainable Development (2020): Explored the social,
economic, and environmental implications of a hydrogen-based economy.
• The Environmental Benefits of Green Hydrogen (2022): Assessed the environmental
benefits of green hydrogen compared to fossil fuels.

These are just a few examples of the many studies conducted on green hydrogen. The research
landscape is constantly evolving, and new findings are emerging all the time. As the technology
improves and costs decrease, green hydrogen is expected to play a significant role in the
transition to a clean energy future

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CHAPTER THREE
‫ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ‬
3.1 Methodology
Deloitte predicts that by 2050, the main green hydrogen exporting regions will be North Africa ($110
billion a year), North America ($63 billion), Australia ($39 billion) and the Middle East ($20 billion),

We will analyze them graphically,, The life cycle and ability of the plant to price hydrogen
according to consumption levels: 20 years versus 40 years.

..Effect of the life cycle and ability of the plant to price hydrogen according to consumption levels: 20
years versus 30 years versus 40 years.

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 Figure 3. LCOH

..Analysis of output calculations for different energy pricing scenarios according to two-
dimensional consumption levels

13
 Figure 4. Analysis of output calculations for different energy pricing scenarios according to two-
dimensional consumption levels

14
 We now live in the age of green molecules . The percentage of these molecules contributing to
energy conversion and acceleration will increase. Balancing technical solutions with the
economy will be key to success. For reference, all working hands must be prepared.

Policy support for clean hydrogen has increased in recent years, particularly with recovery
spending in the wake of COVID-19 and the Russian invasion of Ukraine. Companies focused on
clean hydrogen are mobilizing more money than ever before, with annual investments in clean
hydrogen currently amounting to half a billion dollars a year, according to the International
Energy Agency. Countries are racing to dominate an international industry that is expected to
reach several billion dollars within a decade or two.

These geo-economic calculations are already influencing hydrogen policies. In Europe, for
example, there are fears that China will succeed in dominating the hydrogen industry, just as it
dominates photovoltaic solar cells, battery production, and the extraction of rare earth metals.
Hence many national hydrogen strategies are more an industrial policy tool than a
decarbonisation tool. Countries have a strategic interest in becoming technology makers, rather
than technology recipients, in these areas that are critical to the energy transition.

The electrolyzers needed to produce green hydrogen may represent the biggest prize in the
hydrogen value chain. Similar to photovoltaic solar cells, electrolyzers are a typical technology
that undergoes a steep learning curve. Today, electrolyzers may be at the stage that photovoltaic
solar cell technology went through 15 years ago, that is, on the cusp of moving from a
specialized product to a general product. Although this nascent industry is still in the
development stage, electrolyzers made in China are 75% less expensive than those made in the
West, according to Bloomberg New Energy Finance.

Many countries and regions support taking measures in favor of clean hydrogen, but the United
States recently took the lead by passing an inflation-reducing law. The law's generous tax
rebates ($3/kg) will make hydrogen produced from renewable sources in the United States the
cheapest form of hydrogen in the world. The American law may have had an impact on the
European Parliament’s decision issued in September to facilitate “additional” rules regarding
green hydrogen, amid warnings from the sector of a mass exodus of the industry to the United
States.

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 CHAPTER FOUR
______________________________________________
4.1 Conclusion

Green hydrogen's journey from a promising concept to a mature energy solution is well
underway. With continued research, development, and supportive policies, it has the potential to
revolutionize various sectors, powering a clean and sustainable future. While challenges remain,
the potential rewards are too significant to ignore. Embracing green hydrogen is not just an
option, but a necessity for a cleaner and healthier planet. And it is not just a fuel; it represents a
paradigm shift towards a cleaner and more sustainable future. While challenges remain, the rapid
progress and growing momentum point towards a bright future for this versatile energy carrier.
By investing in infrastructure, addressing cost barriers, and implementing supportive policies, we
can pave the way for a future powered by clean, green hydrogen

Remember, this is just a starting point. The field of green hydrogen is rapidly evolving, and new
developments and applications are emerging all the time

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 4.2 References

• International Energy Agency: https://www.iea.org/reports/technology-roadmap-

hydrogen-and-fuel-cells
• Hydrogen Council: https://hydrogencouncil.com/en/
• Fuel Cell and Hydrogen Energy Association: https://www.fuelcellenergy.com
• Hydrogen Europe: https://hydrogeneurope.eu/
• Green Hydrogen Systems: https://investor.greenhydrogen.dk/
• PwC: https://www.pwc.com/gx/en/industries/energy-utilities-resources/future-
energy/green-hydrogen-cost.html

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