The Public Investment Corporation (PIC) has adopted a hydrogen investment strategy. The strategy  seeks to unlock value through funding and provision of early-stage capital for the development of the hydrogen value chain.

The strategy, further, seeks to leverage on more than 200 hydrogen projects that have been announced worldwide and the more than $250bn (approximately R4.3 trillion) that is required for the development of a hydrogen economy in South Africa. 

The South African government, through its Hydrogen Roadmap, has identified hydrogen as a possible investment avenue. Hydrogen promises to be the next frontier in clean energy technology due to its extensive value chain applications. It can be used to industrialise and create a resultant hydrogen economy. Other benefits include job creation and localised manufacturing; and the potential of turning the country to one of the largest exporters of green hydrogen in the world.

Moreover, South Africa has significant renewable energy potential, given its high solar radiation levels as well as a large area of coastline for wind deployment. Hydrogen can augment renewable energy production by offering a relatively affordable way to store and transport the excess energy produced from these sources. South Africa also hosts the world’s largest Platinum Group Metals resources which benefit significantly from increased demand that could arise from a well-developed hydrogen sector.

The adoption of the strategy comes at a time when several countries around the world are increasingly considering making use of hydrogen as a potential clean energy source.

The Hydrogen Roadmap has identified the PIC as a potential co-investor with other finance institutions in hydrogen projects.

The PIC believes that investments in the hydrogen economy will have a positive impact on society , the planet, and its clients’ portfolios.

 

Issued by The Public Investment Corporation