CAPE TOWN, Oct. 16 (Xinhua) -- South African President Cyril Ramaphosa on Monday highlighted the vital role of green hydrogen in the country's energy transition, which he said is capable of adding 3.6 percent to the country's economic growth by 2050.
Ramaphosa made the remarks in the keynote address delivered through video at the 2nd South Africa Green Hydrogen Summit (SAGHS) kicking off on Monday in Cape Town, the legislative capital of the country.
"The hydrogen economy has a prominent role to play in our country's just energy transition, providing employment and support to vulnerable workers, communities, and small businesses," said Ramaphosa.
"It has been estimated that the hydrogen economy has the potential to add 3.6 percent to our GDP by 2050 and approximately 370,000 jobs," he said. "We must act with purpose to harness the potential of the green hydrogen economy."
South Africa's Investment Strategy, approved by its cabinet earlier this year, lists green hydrogen as one of the big frontier strategic sectors expected to attract foreign and domestic direct investment.
In his speech, Ramaphosa emphasized the country's goal to position itself as a globally competitive player in this dynamic and growing industry.
The president noted that 64 countries, accounting for 89 percent of global emissions, have announced net zero targets by 2050, adding that it is anticipated that global green hydrogen demand will increase sevenfold by 2050.
He further said that for the world to limit global warming to less than 1.5 degrees Celsius, green hydrogen will need to constitute 10 to 20 percent of the global energy mix.
"South Africa has committed to ambitious emission reduction targets. Our own estimates indicate that green hydrogen has the potential to remove 10 to 15 percent of our domestic emissions and contribute to our nation's long-term energy security," said Ramaphosa.
According to him, the 1st SAGHS, held last year, focused on scaling up regional cooperation around green hydrogen, which is being done through the African Green Hydrogen Alliance composed of Egypt, Kenya, Mauritania, Morocco, Namibia, Ethiopia, Angola and South Africa.
"Close cooperation between public, private, and financial partners will be key to unlocking Africa's green hydrogen potential. This will enable mass-scale domestic and international demand for green hydrogen, and increase cooperation on green hydrogen production, storage, and distribution infrastructure," said the president.
