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The DA in the Western Cape welcomes the signing of a Memorandum of Understanding (MOU) on green hydrogen development between the Provincial Governments of the Western Cape, Eastern Cape, and Northern Cape.

The MOU was signed at the Green Hydrogen Summit in Cape Town yesterday, where Premier Alan Winde is representing the Western Cape. The aim of this MOU is to explore areas of collaboration between the provinces that will see the creation of linkages to support local and regional green hydrogen development. The collaboration could include developing shared infrastructure such as transmissions lines.

This exciting announcement comes after Sasol and Freeport Saldanha have already signed their own MOU last year, exploring cooperation to get a green hydrogen hub up and running in Saldanha Bay.

According to a parliamentary reply from the Western Cape Department of Economic Development and Tourism (DEDAT), leading projects under consideration include Sasol’s partnership with Arcelor Mittal SA and renewable energy developers for the conversion of the Saldanha steel plant into a green steel and green direct reduced iron (DRI) manufacturing facility.

Other leading projects include green hydrogen developers focused on the export of green ammonia and green methanol as a fuel derivative. The DEDAT is also partnering with the World Bank on deepening the research toward developing Zero Carbon Bunker Fuels in Saldanha, which is based on green hydrogen production.

The Department also revealed that the development of a green hydrogen hub in Saldanha will provide both direct and indirect job opportunities. While the number of jobs created will depend on the ultimate scale of development and the nature of the hydrogen related businesses to be established in Saldanha Bay.

The DA-led Western Cape Government is approaching job-creation from every angle, and green hydrogen is a new frontier that can be exploited to the benefit of our residents. The trajectory of green hydrogen development in the Western Cape is just another example of the DA’s commitment to making sure that we are at the forefront of economic development wherever we govern. I will be submitting questions to DEDAT to ascertain further details on the MOU, and the impacts it will have on economic development in the Western Cape.

Issued by Cayla Murray, MPP - DA Western Cape Spokesperson on Finance, Economic Opportunities and Tourism

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