The Public and Environmental Economics Research Centre (PEERC) at the University of Johannesburg has reaffirmed its support for South Africa’s green hydrogen ambitions, emphasising the need for an inclusive transition that creates economic opportunity for all South Africans.
Green hydrogen, produced using renewable energy sources like wind and solar, is rapidly gaining global traction as a clean alternative capable of decarbonising hard-to-abate sectors such as steel, cement, chemicals, long-haul transport, and mining. South Africa is uniquely positioned to lead in this sector with its abundant renewable resources, strategic export corridors, and world-class mineral reserves essential for fuel cell technology.
Deputy Minister of Science, Technology and Innovation, Nomalungelo Gina, recently underscored the nation’s commitment to hydrogen energy during her official visit to Japan, where she highlighted the importance of international collaboration, policy support, and investment in research and innovation. Her call for inclusive, transformative principles in the green fuel transition echoes PEERC’s own research findings.
At PEERC, we acknowledge that with opportunities come challenges. While we are looking forward to the potential jobs that the sector will create across the value chain, from manufacturing to operation and maintenance, the sectors success hinges on proper planning and financing, while also considering sustainability. Efficient resource use should be central to the hydrogen development discussion, especially water resources that are already strained. At the center, we emphasize learning from successful global experiences to ensure the benefits of green hydrogen are extracted sustainably and in an inclusive manner.
“Green hydrogen is not just about new energy technologies, it is about shaping the kind of economy and society South Africa wants to build,” says Phindile Nkosi, Director of PEERC. “If designed intentionally, this transition can open pathways for women, young people, and communities historically excluded from high-growth sectors.”
PEERC stresses that green hydrogen development must not be evaluated only on industrial output or export potential. Domestic benefits, such as clean urban mobility, improved air quality, retraining for workers from carbon-intensive industries, and equitable job creation across provinces, are critical markers of success.
South Africa’s policy instruments, including tax incentives for new energy vehicles and the establishment of hydrogen valleys such as the Platinum Valley Initiative, already demonstrate government’s commitment to both supply and demand stimulation in the sector. These initiatives are crucial for embedding hydrogen into local economies while attracting global investment.
“We believe South Africa can become a global leader in green hydrogen while ensuring no community is left behind,” adds Nkosi. “This requires deliberate investment in education, skills development, and inclusive participation, otherwise the benefits will bypass those who need them most.”
PEERC’s ongoing research translates technical and economic insights into accessible, evidence-based policy recommendations. By engaging with policymakers, civil society, and the private sector, the Centre is helping to shape a just transition that balances industrial competitiveness with social equity.
As South Africa positions itself within the global green hydrogen economy, PEERC underscores that the choices made today will determine whether this opportunity drives inclusive prosperity or deepens existing inequalities.
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