The relevance of industrial development zones as prototyping hubs for the diffusion and scale-up of green hydrogen power fuels for South Africa: A case study of Atlantis in Western Cape
Date
2024-02
Authors
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Publisher
University of the Witwatersrand, Johannesburg
Abstract
In South Africa, provinces such as the Western Cape (WC) enjoy high levels of renewable energy (RE) resources such as solar and wind energy while also experiencing critical transmission and storage constraints. On the other hand, industrial development zones (IDZs) such as Atlantis in the WC, offer opportunities for adaptable infrastructure in support of green hydrogen (GH) technologies that can convert surplus RE to GH which is rapidly evolving as a globally flexible power fuel. Through a qualitative study approach, the study assessed the relevance of IDZs as prototyping hubs for addressing the challenges facing the prototyping and scale-up of GH from RE resources which are commonly associated with intermittency. Primary data were collected through interviews with senior engineers (electrical, mechanical, and industrial) in RE and GH while secondary data were extracted from relevant studies and industry reports as well as policy and regulatory frameworks covering RE, GH and IDZs. As one of the initial findings, in spite of rapid evolution in RE-technologies and policies in South Africa and globally, key barriers still exist in the adoption and diffusion of GH-technologies. Five key barriers identified are infrastructure, socio-economic, economic, water scarcity for GH from electrolysis, policy, and regulatory constraints. Secondary data further indicates that SA is in the roll-out stage of two key GH initiatives (Green Hydrogen Valley - GHV and Sasol-Toyota GH joint venture) aimed at tackling the identified barriers. However, further analyses indicates that such prototyping projects would still leave major gaps that need to be closed in order to expedite the scale-up of GH nationally. The study then interviewed one Atlantis IDZ official on the extent to which IDZs could facilitate in closing the adoption and scale-up gaps for GH in South Africa. As a hub specifically created for the testing, prototyping and production of green technologies in order to facilitate their scale-up and adoption, the study finds that Atlantis IDZ is uniquely positioned for mitigating the barrier-gaps identified. The IDZ is equipped with secure streams of capital investments which could be leveraged for GH-technologies as well as for addressing related constraints such as water scarcity through desalination technologies. Atlantis also holds unique learning opportunities, operates under entrepreneurship-friendly special policies, and enjoys access to infrastructure relevant for the adoption and scale-up of GH. Based on these findings, the study concludes that IDZs are not only relevant for the national adoption of GH but also critical for positioning South Africa as a leading GH economy globally.
Description
A research report submitted to the Faculty of Engineering and the Built Environment, University of the Witwatersrand, Johannesburg, in partial fulfilment of the requirements for the degree of Master of Urban Studies in Sustainable Energy Efficient Cities, in the School of Architecture and Planning, in 2024.
Keywords
Atlantis Industrial Development Zone, Energy resource intermittency, Renewable energy resource, Solar PV, Technology diffusion, Scale-up barriers, Wind energy, Western Cape (WC), South Africa, Industrial development zones (IDZs), Green hydrogen (GH) technologies, UCTD
Citation
Madhi, Fadheelah. (2024). The relevance of industrial development zones as prototyping hubs for the diffusion and scale-up of green hydrogen power fuels for South Africa: A case study of Atlantis in Western Cape. [Master's dissertation, University of the Witwatersrand, Johannesburg]. WIReDSpace. https://hdl.handle.net/10539/38869