Global hydrogen demand reached nearly 100 million tonnes in 2024 but production of low-emission hydrogen, made using renewable or nuclear power, accounted for less than 1% of this total, according to the recent Global Hydrogen Review by the International Energy Agency (IEA).
Since 2020, over 200 hydrogen projects worldwide have reached final investment decision but these make up only a small share of the thousands of projects announced, the report says. Slow infrastructure rollout and limited demand are prohibiting the growth of the sector. Without faster progress, the IEA says global climate targets and the development of a fully fledged hydrogen economy are at risk.
South Africa features in the report as one of the countries with a national hydrogen strategy and emerging export ambitions. The country’s platinum group metals reserves present a natural advantage for manufacturing hydrogen technologies such as fuel cells and electrolysers, the report says.
However, the IEA cautions that distance to major demand centres like Europe and Asia is a critical factor in determining export competitiveness. This means South Africa could face higher shipping costs than regions such as North Africa where supply routes to Europe are shorter and less expensive.
