Assessing the environmental and socio-economic challenges and opportunities for the green hydrogen economy in South Africa

1 Introduction

The global energy landscape is undergoing rapid changes, driven by the need to transition toward low-carbon energy technologies. According to the Paris Accord, which requires high carbon-emitting countries to commit to strategic systems to reduce their carbon emissions, many nations see opportunities to adopt new technologies and pursue sustainable energy mix (Tiwari, 2022). While the regulatory strategies of several countries mainly focus on solar and wind energy value chains, energy carriers such as green hydrogen (GH₂), are also valuable in this energy transition (Oliveira et al., 2021). This is due to the potential role that GH₂ can play in supporting low-carbon strategies, particularly for hard-to-abate sectors, such as transportation and agriculture. For countries such as South Africa, the need to implement the energy mix is driven by its long-standing heavy reliance on fossil fuel technologies, which have, in the recent past, demonstrated their non-compliance with environmental regulations and inefficiencies to meet the country's energy demand, particularly electricity (Salgmann et al., 2023). Furthermore, the country's mobility sector is mostly reliant on imported fuels due to limited indigenous oil and gas resources in South Africa. The energy transition is, however, presumed to be a complex concept for the country as emphasized by Zuben et al. (2022). Many argue that the complexity is driven by historical socio-economic disparities constantly confronting the country. Despite the fossil fuel industry's significant contribution toward the country's socio-economic imperatives, its substantial contribution toward the country's 14^th ranking on the global scale of carbon-intensive countries suggests the need for interventions (Matenda et al., 2024). These developments underlines the urgent need for a well-balanced and thoughtful approach in ensuring that the country's energy security, equity issues and environmental endeavors are equally addressed (Ishaq et al., 2022).

To ensure that many sectors, particularly those that are hard-to-abate are also decarbonized, are considered in the energy transition, GH₂ is a key consideration in their decarbonisation strategies (Ishaq et al., 2022; Olifant et al., 2025). Green hydrogen, known for its potential to carry energy in various forms, is being investigated across several countries to assess its feasibility for use in the energy transition. For South Africa, considering its endowment in renewable energy resources such as wind and solar, the role of GH₂ is seen as a potential driver in the energy transition (Kiemel et al., 2021; Abdelrazik et al., 2022; Marouani et al., 2023). This has led to the release of roadmaps and strategies such as the Hydrogen Society Roadmap 2022, the Green Hydrogen Commercialization Strategy 2023 and the Just Energy Transition Implementation Plan (JET-IP) 2023–2027, to communicate national intention of the hydrogen economy in South Africa.

As South Africa embarks on pathways to establish and implement the GH₂ economy, identifying opportunities and challenges associated with it while developing an enabling policy framework becomes imperative (Woods et al., 2022). For example, Marouani et al. (2023) argued that since its production involves electrolysis processes and mineral-induced fuel cells, the country's natural resources make it well positioned to adopt GH₂. However, while Olifant et al. (2025) argued that barriers such as financial constraints, regulatory hurdles, and lack of infrastructure are key factors hindering its rapid adoption; Ayodele and Munda (2019) contend that the role of GH₂ in South Africa's evolving energy landscape should be thoroughly studied. This raises a question about whether the socio-economic and environmental aspects associated with GH₂ adoption are well understood in South Africa. To date, there is a dearth of literature assessing the country's GH₂ economy and its links to socio-economic and environmental aspects. This underscores the necessity of this study, which aims to systematically and comprehensively review the existing literature to explore the GH₂ value chain, barriers and opportunities for South Africa's planned GH₂ economy. This will, therefore, broaden understanding and promote a pathway for its adoption. Such an assessment is undertaken within the context of the country's socio-economic and environmental imperatives, alongside its policy framework. Conducting a review of an emerging and complex technology such as GH₂ is a vital contribution toward providing reliable general information regarding the proposed hydrogen economy, while also identifying barriers and opportunities for its adoption in transitioning the hard-to-abate sectors within the country.

2 Green hydrogen value chain

2.1 Types of green hydrogen

Hydrogen (H₂), the lightest and most abundant element on Earth, with a molecular weight of 1.008 g/mol, has recently surged in popularity due to its high energy density. These characteristics position hydrogen to be applied and integrated across various sectors in a single energy market, thus showing promising economic viability (Lagioia et al., 2023). Hydrogen is classified in color according to various sources used during its production, as described in Table 1. Green hydrogen is a sustainable energy carrier and a prominent alternative to fossil fuels. It is produced by splitting water into hydrogen and oxygen using electricity from renewable resources such as wind and solar energy (Oliveira et al., 2021). The production process, storage, distribution, and application of GH₂ are briefly detailed in this section.

Table 1. The types of hydrogen with their respective color classifications.

2.2 Green hydrogen production and storage

Green Hydrogen is produced by the utilization of electrolysers through electrolysis, a process that splits water molecules into hydrogen and oxygen using electricity from clean sources (Nikolaidis and Poullikkas, 2017; Lagioia et al., 2023). The most attractive and suitable electrolysers for large-scale GH₂ productions are Proton exchange membrane due to their compact size and wide power regulation range, Alkaline electrolysers due to their high technological maturity and long service and Solid oxide electrolysers as they can operate in very high temperatures (Olifant et al., 2025). Meanwhile the Anion exchange membrane electrolysers are in their research and development stages (Zhou et al., 2022; Lagioia et al., 2023).

Hydrogen has a wide flammability range (4–75 vol%), requires minimal energy to ignite, and is prone to leakage. As a result, large-scale storage and transportation demand highly reliable, cost-effective, and safe systems to ensure secure movement from production sites to end users (Zhang et al., 2020; Li et al., 2022). Moreover, storage systems used for hydrogen require efficient reversibility of uptake and release without any reactions between the storage materials and the H₂ (Abdalla et al., 2018). Hydrogen can be stored using several methods, including compression as gaseous hydrogen, liquefaction, or through carriers such as metal hydrides and green ammonia (NH3). In addition, emerging carrier technologies under research and development include liquid organic hydrogen carriers (LOHCs), metal-organic frameworks (MOFs), and carbon nanotubes (CNTs) (Abdalla et al., 2018; Faye et al., 2022).

2.3 Green hydrogen applications

Green hydrogen has potential applications across multiple sectors, these include transportation, energy, agriculture, manufacturing, and chemicals, which are “hard-to-abate” sectors. Globally, the transport sector accounts for approximately 25% of total greenhouse gas (GHG) emissions. In South Africa, the transport sector contributes around 10.8% of the national GHG emissions, positioning GH₂ as a viable pathway for decarbonising the sector (Department of Transport, 2017; Kannaiyan et al., 2023). Green hydrogen is also a promising energy carrier for diverse transport modes, including land-based, aviation, and marine systems. In particular, fuel cell electric vehicles (FCEVs), which use fuel cells to convert hydrogen into electrical energy, are considered vital in decarbonising the transport sector. Furthermore, Kannaiyan et al. (2023) stated that FCEVs are projected to account for up to 25% of global land-based transport. Fuel cells also have applications beyond transport. While smaller fuel cells can power portable electronic devices such as mobile phones and laptops, larger GH₂-based fuel cells can provide backup power or supply electricity to off-grid infrastructure such as agricultural systems, manufacturing facilities, and schools. Unlike conventional batteries, fuel cells operate on a similar principle but offer the unique advantage of continuous energy generation for as much as hydrogen supply is maintained (Zuben et al., 2022).

Green hydrogen is also a strategic feedstock for ammonia production, which is the second most widely produced chemical worldwide, with an annual capacity of approximately 230 million tons per annum (Mtpa). Notably, around 80% of global ammonia output is used in fertilizer manufacturing, thus playing a key role in agricultural productivity. In addition to its agricultural uses, ammonia is also essential in the production of explosives and a wide range of other chemical products such as synthetic fibers and pesticides (Chatterjee et al., 2021). Further applications of GH₂ include the synthesis of green steel, methanol, and other hydrocarbons, while it serves as an energy storage solution to balance intermittent renewable energy sources (Spatolisano et al., 2023). With the above-mentioned, GH₂ represents as a vital enabler of industrial decarbonisation and a driver of the global transition toward a low-carbon future. However, there remains a gap in assessing its environmental and socio-economic impacts, particularly in developing countries such as South Africa, where policy fragmentation, environmental, and social disparities are still prevalent.

3 Methodological approach

This review paper examined both scientific and technological progress in GH₂ development within South Africa's socio-economic and environmental context. A rapid review of empirical academic (peer-reviewed) and non-academic literature, including regulatory framework, projects and industry reports, government publications, and conference papers, was conducted. Using search engines such as Google Scholar and Scopus, along with government websites, themes including the GH₂ and its value chain, energy transition, policy development, and hard-to-abate sectors were used as criteria for inclusion within the global, regional, and South African contexts. This approach was informed by propositions of GH₂ incorporation into the country's energy systems where technological, scientific, and socio-economic barriers and opportunities are still being assessed. These highlights the lack of comprehensive knowledge, skills, and policy frameworks necessary to integrate GH₂ into the energy mix. This approach is corroborated by the limited research work centralized on the GH₂ value chain and its linkage to socio-economic and environmental aspects of the country.

The data was further analyzed using a thematic approach, which informed the study of relevant materials to review. Subthemes, including social, economic, and environmental aspects, were primarily key in assessing national and global developments, opportunities, and challenges observed from the existing literature sources.

4 Results and discussions

4.1 Environmental impacts

Electrolysis, a process that splits water into hydrogen and oxygen using renewable energy, produces oxygen as a by-product while emitting zero carbon into the atmosphere. This makes it a clean and environmentally friendly method for hydrogen production, especially when powered by renewable energy sources such as wind and solar. In contrast, conventional hydrogen production methods, like steam methane reforming and coal gasification, rely heavily on fossil fuels, including coal, oil, and natural gas (Olifant et al., 2025). These processes release significant amounts of carbon dioxide (CO₂) and other harmful pollutants into the atmosphere, thus contributing to global warming and environmental degradation. Furthermore, the widespread adoption of electrolysis to produce GH₂ is said to align with global efforts to transition to a low-carbon economy and achieve sustainable development goals. It is, therefore, essential to assess the environmental impact of GH₂ adoption in South Africa.

4.1.1 Carbon footprint reduction through green hydrogen

In accordance with the Paris Agreement goals, which aim to keep the global temperature rise well below 2°C and to a limit of 1.5°C, GH₂ is increasingly recommended as one of the crucial pathways for decarbonization. In addition to addressing renewable energy intermittency and sectoral challenges, GH₂ offers significant potential to reduce emissions in hard-to-decarbonize sectors (Olifant et al., 2025). Currently, fossil fuel extraction and combustion remain the primary sources of global GHG emissions, thus causing serious environmental impacts. The existing global hydrogen supply chain is highly carbon-dependent, with about 50% of production derived from natural gas reforming, 30% from oil-derived gases and chemical processes, 18% from coal gasification, and only 3.9% from renewable sources. Consequently, conventional hydrogen production is responsible for an estimated 830 million tons (Mt) of CO₂ emissions annually, accounting for approximately 2.5% of global CO₂ emissions (International Energy Agency, 2023).

Green hydrogen is said to have potential to reduce up to 85 gigatons of CO₂ equivalent (GtCO₂eq) in cumulative emissions by 2050; however, this relies on the steady growth of its global market. To reach climate neutrality by 2050, the global GH₂ market is projected to reach 600 Mt, with market demand possibly increasing sixfold in the same year. Success in this goal will see the industrial and transport sectors making up 42% and 36% of the total global GH₂ demand (Deloitte, 2023; Wei et al., 2024). The global warming potential (GWP) values of various types of hydrogen and their methods are presented in Table 2. While the GWP of blue hydrogen can be comparable to that of green hydrogen, its overall carbon footprint remains highly dependent on the electricity mix employed during the CO₂ capture process. The relatively lower GWP values associated with blue hydrogen are primarily attributable to the integration of Carbon Capture and Storage (CCS) technologies within its production value chain. Nonetheless, green hydrogen production remains inherently cleaner and more efficient in terms of carbon emissions, given its reliance on renewable energy sources (Amin et al., 2022).

Table 2. Comparison of the types of green hydrogen, their production methods, and global warming potential values [data source: (Suer et al., 2022)].

GWP, global warming potential values; kg.CO₂eq/kg.H₂, kilograms of carbon dioxide equivalent per kilogram of hydrogen.

Projected increases in the annual global average temperature of 1.25 °C by 2025 and 2.2 °C by 2050, driven by unmitigated anthropogenic activities that sustain carbon emissions, demands prompt intervention strategies. The adoption of GH₂, when combined with practical implementation strategies and supportive policy frameworks, presents a promising pathway to alleviate these anticipated temperature rises and their environmental and climatic impacts, particularly in fossil fuel-dependent nations such as South Africa (Nnabuife et al., 2023).

Although Africa contributes approximately 4% of global GHG emissions, the continent recorded a notable increase of 2.1% in emissions between 2010 and 2019, compared to the global average growth rate of 1.2%. Despite pervasive underdevelopment, many African countries remain heavily reliant on fossil fuels for their energy needs (Wang H. L. et al., 2023). Figure 1 illustrates the carbon emission profiles across various economic sectors in 19 African countries in 2019. In the same year, South Africa's power sector alone accounted for 65% of the country's total carbon emissions, with approximately 92% of its electricity generation derived from coal (Wang et al., 2024). This trend therefore necessitates an urgent need to transition toward a low-carbon economy, both in South Africa and across the African continent.

Innovative research and development efforts focused on cleaner hydrogen production technologies with low carbon emissions and reduced GWP are gaining momentum as part of broader sustainable development. This is illustrated in a study by Yousaf et al. (2022), which analyzed methanol production through the hydrogenation of captured CO₂ using green hydrogen (GH₂) produced by a solid oxide electrolyser. The study reported a reduction of 2.965 tons of CO₂ emissions per ton of methanol compared to conventional steam methane reforming-based hydrogen production. Similarly, Iannuzzi et al. (2021) conducted a life cycle assessment comparing CO₂ emissions from diesel and GH₂-powered city buses, revealing that GH₂ enables substantially greater CO₂ reductions than gray hydrogen derived from natural gas or biofuel reforming. As scientific advancements continue to refine GH₂ production pathways, a range of innovative techniques is emerging. Several of these methodologies and their associated GWPs are summarized in Table 3. Although these technologies demonstrate significant potential for economy-wide decarbonization, their large-scale deployment necessitates further innovation and a more comprehensive understanding of their socio-economic and environmental implications, including the high costs associated with processes such as nuclear-driven electrolysis (Iannuzzi et al., 2021).

Table 3. Innovative methods for green hydrogen production and their respective global warming potential values [data: Aravindan et al., 2023; Nnabuife et al., 2023].

4.2 Economic analysis

4.2.1 The cost of green hydrogen production

The production of gray hydrogen is considered less expensive than that of blue hydrogen or green hydrogen. The estimated production cost of gray hydrogen ranges from approximately USD 1.66 to 1.84/kg, whereas blue hydrogen is estimated at USD 2.09 to 2.23/kg, reflecting the additional expenses associated with carbon capture and storage technologies. However, the imposition of carbon penalties is projected to increase production costs, with gray hydrogen rising to an estimated USD 2.09 to 2.23/kg and blue hydrogen to USD 2.24 to 2.70/kg (Longden et al., 2022). For electrolysis based GH₂, although with its many environmental benefits, various literature reports that it is estimated at USD 10.30, which is approximately five times more than the conventional methods (Kazi et al., 2021; Younas et al., 2022). Other literature sources suggest the costs of GH₂ to range between USD 3.6 and 5.8/kg (Kumar and Lim, 2022). It is therefore important to recognize that the cost of GH₂ is influenced by several factors, including the type of electrolyser employed, geographical location, availability of supporting infrastructure, as well as the year of production and market conditions at the time of sale.

Further to this, the cost of producing GH₂ mainly revolves around capital expenses, annual operating hours, the type of electrolysers used, and renewable energy costs. The capital cost of electrolysers constitutes a larger part of the overall capital expenditure. For example, the costs of Alkaline electrolysers (AE), Proton Exchange Membrane (PEM), and Solid Oxide Electrolysers (SOE) have been reported to cost USD 500–1,400/kW, USD 1,100–1,800/kW, and up to USD 6,000/kW respectively (AbouSeada and Hatem, 2022). In Australia, the 2019 capital cost of AE ranged from A$714 to A$2,000/kW (~USD 481–1,348), and by 2030, it is estimated to be approximately A$571 to A$1,214/kW (~USD 385–818). For PEM, the 2019 cost ranged from A$1,571 to A$2,571/kW (~USD 1,059–1,733), compared to a projected cost of A$928 to A$2143/kW (~USD 625–1,445) in 2030 (Longden et al., 2020). These cost trends indicate that the capital costs of electrolysers are expected to decrease significantly as deployment increases worldwide (Longden et al., 2022). Additionally, regarding system operating duration, longer electrolyser operating hours can reduce the impact of capital costs; however, in this case, the electricity costs are increased. To achieve low-cost, AbouSeada and Hatem (2022) emphasized that optimal GH₂ production with electrolysers and maximizing operating hours is essential.

It is vital to recognize that the cost of GH₂ production is likely to differ significantly with each country. In developing countries such as South Africa, where infrastructure, production technologies, manufacturing facilities, and a skilled workforce are limited, capital costs for GH₂ production tend to be considerably higher compared to countries such as Japan and China, with advanced facilities and technical expertise. In cases such as in South Africa, where a domestic GH₂ supply chain has not yet been established, production costs extend beyond the direct expenses of purchasing and installing equipment. They also include added costs related to shipping, customs duties, and installation labor. These factors collectively contribute to the higher overall cost of GH₂ production in comparison to more developed economies. Consequently, conducting comprehensive feasibility and techno-economic assessments is essential to accurately estimate GH₂ production costs/kW by 2030 in underdeveloped and developing African countries. Therefore, South Africa should be considered, as it has already initiated preliminary strategies for integrating GH₂ into its national energy mix.

4.2.2 Green hydrogen production and market projections

Green Hydrogen has the potential to stimulate and support economic development, particularly in developing countries. Many nations, especially in the Global North, are actively developing strategies to decarbonize their hard-to-abate sectors. Projections indicate that the successful deployment of GH₂ could meet approximately 24% of global energy demand by 2050, while concurrently generating around USD 11 trillion in infrastructure investment opportunities and USD 2.5 trillion in direct annual revenues over the next three decades (Woods et al., 2022).

The aim to achieve these objectives depends not only on establishing domestic GH₂ markets but also on exporting and importing, as its global market value in 2020 was worth USD 130 billion, with inevitable annual increases until 2030. Additionally, the export market is expected to be worth USD 300 billion annually by 2050, with the product's demand set to skyrocket from 87 million metric tons in 2020 to between 500 and 680 million metric tons by the same year (Maka and Mehmood, 2024; Reda et al., 2024).

Germany, for instance, anticipates an annual demand for GH₂ of 90-100 TWh. To address this demand, the country plans to install 5 GW of GH₂ production capacity by 2030, with the goal of expanding to a total of 10 GW by 2040. Given the limitations imposed by its domestic resources, Germany also intends to supplement domestic production through imports of GH₂. Other nations have adopted a similar strategy, combining partial domestic production with imports to meet their energy requirements. Italy, for example, aims to establish 5 GW of GH₂ capacity by 2030; however, this would suffice to satisfy only approximately 50% of its projected GH₂ demand, necessitating additional imports. Ambitious countries such as Chile have set a target of 25 GW of GH₂ capacity by 2030. If achieved, and assuming a projected GH₂ price below 1.5 USD/kg, Chile is expected to emerge as a leading exporter of both GH₂ and green ammonia (Wappler et al., 2022).

As a prospective producer and exporter of GH₂, South Africa has already forged strategic partnerships with the European Union (EU) nations. The country aims to achieve a production target of 500,000 tons of GH₂ and develop a total capacity of 16.6 GW by 2030, with an additional 15 GW of capacity projected by 2040 (Department of Science Innovation, 2021). The country can further leverage producing GH₂ for aviation and green ammonia, thus potentially capturing a share of the global market demand (Bhagwat and Olczak, 2020). In addition to possessing abundant renewable energy resources, including wind and solar, South Africa holds over 90% of the world's reserves of Platinum Group Metals (PGMs). The country has the potential to further stimulate economic growth by exporting PGMs, such as iridium, platinum, and titanium, which are critical in the manufacturing of components for PEM electrolysers and fuel cells (Uhorakeye et al., 2023).

Approximately 10.9 tons of iridium and 4.0 tons of platinum are needed to produce 10.9 GW of electrolysers by 2030. However, with the expected growth of the GH₂ market and increasing global demand, these requirements are forecasted to decrease to 3.8 tons of iridium and 1.3 tons of platinum by 2040 for the same capacity, due to the cumulative installation of electrolysers worldwide by that time (Uhorakeye et al., 2023). This offers South Africa an opportunity to leverage emerging global opportunities for platinum group metals (PGMs). While large-scale domestic manufacturing of electrolysers and fuel cells would ideally support the development of a local GH₂ economy, several barriers may hinder this goal. The country lacks the necessary manufacturing infrastructure, advanced production facilities, and specialized expertise required for these technologies. Moreover, the absence of access to vital technology licenses further restricts the domestic production of such highly specialized components.

These limitations not only hinder the development of a local GH₂ industry but also increase dependence on imported technologies, potentially raising costs and diminishing the competitiveness of domestic projects. Addressing these challenges will require substantial investment in research and development, the establishment of technology transfer agreements, and targeted capacity-building initiatives to cultivate the local skills base (Uhorakeye et al., 2023).

4.3 Social implications

4.3.1 Employment opportunities and local community development

The implementation of GH₂ initiatives aims not only to mitigate environmental impacts by reducing global carbon emissions and stimulating economic growth, but also to address pressing social challenges such as unemployment. This is particularly relevant in developing economies like South Africa, where unemployment rates remain among the highest globally. Recent communications from both government and industry have increasingly emphasized the potential of the GH₂ economy to generate employment opportunities as a central component of its value proposition.

Globally, numerous regions have positioned GH₂ as a catalyst for job creation. For instance, the European Union (EU) anticipates the generation of approximately 5.4 million jobs within the GH₂ economy by 2050 (Bhagwat and Olczak, 2020). Similarly, Australia projects the establishment of around 7,600 jobs by 2050, with the potential for further growth depending on market dynamics (Beasy et al., 2023). In Namibia, projections indicate the creation of 600,000 jobs by 2040, with 30% expected to be direct employment (Gabor and Sylla, 2023). In the case of South Africa, where youth unemployment (ages 15–34) stood at 45.5% and the national average stood at 33.2% in the second quarter of 2025 (Statistics South Africa, 2025), employment creation through the GH₂ sector is particularly critical to reducing poverty and inequality. Given the country's potential to serve as Africa's GH₂ hub, it is estimated that approximately 650,000 jobs could be created across the GH₂ value chain by 2050, supporting both export and domestic markets (Centre for Scientific Industrial Research, 2024).

A significant challenge in forecasting “green jobs” lies in the absence of standardized occupational classifications and definitions within the sector. Moreover, employment projections frequently amalgamate short-, medium-, and long-term data, despite the varying skill requirements across different time horizons. This issue is particularly pronounced in developing countries, where specialized technical expertise remains limited. As Bezdek (2020) emphasizes, there is a need for systematic evaluation and reporting of specific occupational roles, transferable skills, training requirements, and associated remuneration levels. Such analyses must also account for disparities in industrial capacity; for example, countries like China are better positioned to generate manufacturing-related employment, whereas nations such as South Africa are more likely to import GH₂ technologies rather than produce them domestically.

In the context of GH₂-related job creation, it is imperative that vulnerable and marginalized communities derive tangible socio-economic benefits from the emerging GH₂ economy to advance broader poverty alleviation objectives. One promising avenue for achieving inclusive development is the adoption of decentralized energy systems. These systems have the potential to foster, empower local communities, stimulate entrepreneurship, and create localized employment opportunities. Beyond these direct outcomes, decentralized approaches can enhance community participation in policy formulation and decision-making processes throughout the GH₂ value chain, promote local investment, and provide platforms for dialogue on energy transition issues. Consequently, such approaches can transform community members from passive consumers of GH₂ technologies into active prosumers contributors to the design, implementation, and optimization of GH₂ strategies and energy efficiency initiatives as affirmed by Ahmed et al. (2024).

South Africa's energy landscape, however, remains predominantly centralized, with provinces such as Mpumalanga serving as key energy hubs. Transitioning toward a decentralized GH₂ framework is therefore essential to ensure equitable development and local empowerment. Community members actively involved in GH₂ initiatives are likely to experience enhanced agency through their participation. This is imperative as such involvement fosters collaboration with other stakeholders, strengthens social cohesion, and builds local capacity to address community needs within the broader context of national GH₂ deployment (Van Der Waal, 2020). Ultimately, the successful realization of decentralization and community development outcomes will depend on cultivating positive public perceptions of, and social acceptance toward, renewable energy and GH₂ technologies.

4.3.2 Public acceptance and perception of green hydrogen

The term “acceptance” refers to the attitude and behavior that indicates a positive decision to support the use of innovation. In terms of technology, acceptance does not necessarily mean its actual use; it largely reflects positive or negative perspectives on its development (Huan et al., 2024). Acceptance can shape not only communities but also political agendas, while influencing local and international investments and the regulation of technological development (Bharadwaj et al., 2024). As highlighted in the preceding section, fostering positive public perception and securing social acceptance, particularly among marginalized communities, is essential for advancing national development and stimulating local economies through the creation of green jobs. Furthermore, insufficient social acceptance has been recognized as a significant barrier to energy transition, especially in developing and underdeveloped countries. Resistance to the social acceptance of GH₂ is frequently attributed to limited interaction and communication across socio-political dimensions, low levels of public trust in governmental institutions, concerns over the safety of GH₂ technologies, failure of several green hydrogen projects and the high costs associated with renewable energy systems. Moreover, a general lack of public awareness and exclusion from participatory decision-making processes further exacerbate this resistance. These factors, therefore, underscores the importance of inclusive engagement, transparency, and community involvement in advancing GH₂ initiatives (Gordon et al., 2024).

Society, significantly shaped by the proliferation of media and literary reports that frequently convey emotionally charged perspectives, is often compelled to internalize these viewpoints and conclusions. It is therefore crucial to acknowledge the role of communication in shaping public perception and influencing social acceptance (Huan et al., 2024). Emotions play a significant role in shaping societal acceptance of GH₂ and renewable energy more broadly. Media coverage and scholarly literature elicit a spectrum of emotional responses, including optimism, hope, excitement, and anticipation regarding a positive energy transition. Conversely, emotions such as confusion, fear, and skepticism tend to dominate among individuals exhibiting adverse reactions and resistance toward the energy transition (Gordon et al., 2024). Given this context, communication surrounding GH₂, particularly in developing and underdeveloped countries, should acknowledge relevant uncertainties and complexities, while simultaneously conveying a straightforward and practical narrative about the potential benefits of GH₂.

In the South African context, public skepticism toward the government, particularly the Department of Energy and Electricity remains pronounced. Historically, the department has faced persistent challenges in maintaining energy infrastructure, leading to prolonged inefficiencies in coal-fired power plants, infrastructure deterioration, escalating electricity tariffs, and power cuts. Concerns regarding GH₂ adoption have been amplified by the introduction of fuel cell electric vehicles (FCEVs) and hydrogen refueling stations, as society questions the future of the fossil fuel-based mobility sector, the practicality of existing vehicle fleets, and the broader economic implications for vehicle owners. Moreover, the high cost of FCEVs further intensifies public apprehension.

In addition to the aforementioned, South Africa has a long history of public protests stemming from the exclusion of citizen voices in governmental decision-making processes. Consequently, inadequate public engagement in GH₂ initiatives could lead to social unrest, project abandonment (Schönauer and Glanz, 2022), infrastructure vandalism, and limited community participation in both current and future GH₂ developments. To cultivate an unbiased public perception and acceptance of GH₂ projects, several strategies can be implemented.

Ahmed et al. (2024) suggest that reinvesting project revenues into local communities can enhance social acceptance of sustainable development initiatives and facilitate the expansion of GH₂ projects. Furthermore, public acceptance can be strengthened through youth empowerment initiatives, particularly by supporting individuals pursuing careers in Science, Technology, Engineering, and Mathematics (STEM), as this fosters engagement between government stakeholders and marginalized communities, while promoting a just transition for coal-dependent regions such as Mpumalanga.

Once these measures are implemented, South Africa could consider models of shared community ownership. For example, in Western Australia, the East Kimberley Clean Energy Project, set to produce green ammonia in 2028, will be jointly owned by two local Aboriginal groups (Toledano et al., 2023). In the South African context, shared ownership could take various forms, such as partnerships between individual landowners and GH₂ project developers, or collaborations between community investment groups and GH₂ developers as proposed by Toledano et al. (2023). Central to all such initiatives is the need for government transparency, which is essential for securing public trust and ensuring the long-term success of these projects.

4.4 The integration of green hydrogen and its challenges in South Africa

The integration of GH₂ is widely regarded as highly suitable for South Africa, particularly in light of plans to couple its production with renewable energy sources such as wind and solar. For instance, several regions in the country receive over 2,500 hours of sunshine annually, with an average solar irradiation of 2,025 kWh/m² per year, equivalent to approximately 5.55 kWh/m² per day (Abdelrazik et al., 2022). The Northern Cape exhibits the highest solar radiation at 2,282 kWh/m² annually, whereas KwaZulu-Natal records the lowest at 1,786 kWh/m² (Abdelrazik et al., 2022; Overen and Meyer, 2022). Additionally, South Africa possesses significant wind energy potential, particularly along its coastal regions, with average wind speeds of 6 m/s at an altitude of 10 meters, potentially enabling the generation of 60 TWh of wind energy annually (Mostafaeipour et al., 2020).

These conditions underscore the importance of developing comprehensive GH₂ strategies and production plans in South Africa. These are to accelerate economic decarbonisation, advance the transition to a sustainable energy future, establish reliable low-carbon energy systems, mitigate the impacts of load shedding, and address climate change and environmental degradation. However, energy security remains a critical challenge that could constrain the growth of the domestic GH₂ sector. Defined as the continuous availability of energy at affordable prices, energy security ensures a dependable supply for both present and future needs (Foss, 2022). This concern is particularly pronounced in South Africa, where the energy mix remains heavily reliant on fossil fuels. Efforts to expand renewable energy and GH₂ production face multiple obstacles, including rising energy demand driven by population growth, as well as risks associated with price volatility and market fluctuations (Alemzero et al., 2021).

Moreover, the deployment of solar and wind energy central components of South Africa's GH₂ strategy presents specific challenges. Solar energy is affected by efficiency losses, material limitations, and recycling-related energy costs, while wind energy faces land use constraints and potential environmental and ecological impacts (Azarpour et al., 2013; Smarte Anekwe et al., 2024). These factors collectively pose potential risks to energy security during the country's transition. A further critical concern in South Africa is water availability, which will be examined in the subsequent section.

4.4.1 Water availability challenges

South Africa's water scarcity represents a significant constraint for GH₂ production, as electrolysis is heavily dependent on freshwater availability. The water-energy nexus in South Africa is particularly complex, given that water access directly influences energy generation and reliability, whether from renewable or fossil fuel sources. Despite its critical role, the relationship between water resources and GH₂ production remains underexplored in the South African context.

Given the prevailing water challenges in regions targeted for GH₂ production, concerns have arisen regarding water availability in countries such as South Africa (Beswick et al., 2021; Borge-Diez et al., 2024). Consequently, researchers have sought to compare the water demands of conventional fossil-fuel-based hydrogen production with those of GH₂ produced via electrolysis. In this regard, Borge-Diez et al. (2024) emphasize the need for continued research and comprehensive analyses to better understand the water requirements of GH₂ within the broader energy-water nexus.

To achieve a globally mature GH₂ economy, it is estimated that approximately 2.3 gigatonnes (Gt) of GH₂ would be required annually, necessitating roughly 34,500 gigalitres (GL) of water per year, based on standard water-to-hydrogen conversion ratios. Current estimates suggest that producing 1 kg of GH₂ consumes approximately 9 kg of purified freshwater (Beswick et al., 2021; Woods et al., 2022). These substantial water demands have prompted exploration of alternative sources, such as brackish water, to reduce reliance on desalination processes and the associated auxiliary services (Woods et al., 2022). According to Woods et al. (2022), producing 1 kg of GH₂ would require between 60 and 95 kg of seawater or brackish water. While desalination of seawater or brackish water appears technically and economically feasible for large-scale GH₂ production, particularly in water-stressed coastal regions, the energy demand for desalination, estimated between 55 kWh/kg and 70 kWh/kg of GH₂ remains a critical consideration.

The choice of water source necessitates evaluation of multiple contextual factors. Utilizing freshwater requires consideration of competing demands, including irrigation, domestic supply, and future climate variability, as well as the incidence of droughts. In contrast, employing seawater or brackish water necessitates attention to energy consumption, wastewater recycling, and regional desalination strategies (Borge-Diez et al., 2024). Beyond these sources, treated industrial wastewater, urban wastewater, estuarine water, and rainwater have been proposed as potential alternatives; however, all five sources are susceptible to contamination. Treated industrial and urban wastewater may contain suspended solids, while urban wastewater and estuarine water may also harbor microbial contaminants such as algae. Rainwater may carry both dissolved and suspended solids (Simões et al., 2021).

Although South Africa is still in the preliminary stages of developing a GH₂ economy, the country faces persistent water challenges. Climate change-driven factors, including prolonged droughts and variable rainfall patterns, combined with increasing pollution and anthropogenic pressures from mining and agriculture, exacerbate water scarcity. These challenges are further compounded by inadequate infrastructure maintenance and limited investment in water systems, adversely affecting economic growth and public well-being (Viljoen and Van Der Walt, 2018; Nwokediegwu et al., 2024). South Africa currently receives less than 50% of the global average rainfall, and future climate projections indicate that, without carbon mitigation, rainfall is likely to decrease further in the near future (Prins et al., 2023).

In this context, the introduction of a GH₂ economy as a climate mitigation strategy raises important questions regarding its feasibility in water-constrained South Africa. Moreover, concerns persist regarding the potential implications of large-scale GH₂ production for the country's energy-water nexus, highlighting the need for careful planning, resource management, and policy intervention.

Furthermore, South Africa shares four internationally managed river basins (Orange, Inkomati, Limpopo, and Maputo) that contribute to 45% of the country's total river flow. These basins, however, must be fairly divided with neighboring countries, which also face water availability issues due to growing populations, expanding economies, semi-aridity, and inadequate water infrastructure (Viljoen and Van Der Walt, 2018). The water uses by sector in South Africa, as shown in Figure 2, illustrates that available water is overly allocated amongst different user types such as domestic use and industrial. Although agriculture is the largest water user, Viljoen and Van Der Walt (2018) point out that most of the water used is not measured, meaning that unauthorized abstraction and water wastage remain a concern in the sector. This demonstrates critical water challenges in the country, mainly due to either overallocation or unaccounted. This is likely to negatively impact the availability of water for emerging water-driven processes such as electrolysis, which is key in the production of GH₂.

Although the sector is a major contributor to both employment and Gross Domestic Product, there remains a critical need to reduce water consumption. In South Africa, the average individual consumes 237 liters of water per day, exceeding the global average of 173 liters by 64 liters (Viljoen and Van Der Walt, 2018). To address this challenge, it is necessary to implement more stringent water management regulations, accompanied by enhanced accountability and effective leadership, to improve water-use efficiency. This is particularly important for supporting GH₂ production, which depends on a reliable and consistent water supply. By aligning water consumption for GH₂ production with broader national water conservation strategies, South Africa has the potential to mitigate the anticipated exacerbation of its ongoing water scarcity challenges (Shemer et al., 2023).

4.5 Green hydrogen policy and regulatory frameworks

4.5.1 South African context

South Africa is committed to leveraging GH₂ to decarbonise its energy and industrial sectors while expanding the renewable energy sector to diversify the national energy mix. Given the numerous benefits that GH₂ offers, robust policies and regulatory frameworks are essential for the development of a sustainable GH₂ economy. Such frameworks can facilitate efficient integration, attract international investment and collaboration, implement targeted incentives, enhance energy accessibility, and accelerate national industrialization. South Africa has ratified the Paris Agreement by signing and agreeing to implement actions to mitigate climate change. This was followed by the ratification of the commitment in various policy documents such as the Integrated Resource Plan (IRP) of 2019, recently released IRP 2025, as well as the Nationally Determined Contributions. Specifically, the IRP outlined the nation's commitments to expand electricity capacity using renewable energy sources, such as hydro, solar, and wind (Department of Mineral Resources Energy, 2019). Although the IRP does not detail any commitments for GH₂, it is clearly incorporating sustainable development considerations, thus driving the country away from overreliance on fossil-fuel-driven energy systems to low-carbon technologies such as GH₂.

Currently, despite its potential to become a producer of GH₂, South Africa lacks specific policies dedicated solely to GH₂ (Imasiku et al., 2021). However, as mentioned above, the country has published several strategic documents that collectively address various aspects of GH₂ development, including the Hydrogen Society Roadmap 2021, the Green Hydrogen Commercialisation Strategy 2022, and the Just Energy Transition Implementation Plan (JET-IP) 2023–2027.

The Hydrogen Society Roadmap outlines South Africa's GH₂ building blocks and sets ambitious targets across the value chain from 2021 to 2040. It also proposes the establishment of a national GH₂ office to act as a central coordinating body, overseeing initiatives, integrating GH₂ technologies, and fostering stakeholder collaboration to advance the GH₂ economy (Department of Science Innovation, 2021).

The Green Hydrogen Commercialization Strategy emphasizes that South Africa's vision for GH₂ must: (i) incorporate strategic design principles, (ii) adapt rapidly to competitive market dynamics, and (iii) leverage abundant natural resources, including platinum group metals (PGMs) such as platinum and iridium, which are essential in electrolyser manufacturing. The strategy further identifies critical objectives, including securing an early position in the global GH₂ market, promoting socio-economic development, and ensuring an equitable and just energy transition. It also highlights areas requiring further development, namely: (i) direct state investment, (ii) economic and financial support mechanisms, (iii) legislative and regulatory measures, (iv) standards and priority setting, (v) research and development, and (vi) international engagement strategies (The Department of Trade, 2022).

In November 2023, South Africa released the JET-IP for 2023–2027, which encompasses strategic plans for electricity, skills development, renewable energy risk management, and GH₂. The plan outlines detailed actions to advance the GH₂ sector and associated industries, including the manufacturing of key products such as fuel cells and electrolysers. Additionally, the JET-IP addresses: (i) stakeholder engagement in the GH₂ sector, (ii) trade relations with major GH₂ markets, including the European Union, United Kingdom, Japan, and South Korea, (iii) transparency regarding GH₂ progress and fund utilization, (iv) the current insufficiency of local skills, and (v) national efforts to address the ongoing energy crisis. Proposed solutions include leveraging GH₂ to mitigate energy shortages, developing the workforce to reduce unemployment, and enhancing transparency through a publicly accessible progress dashboard (The Presidency of the Republic of South Africa, 2023).

To fully realize the potential of GH₂ in South Africa's energy transition, it is crucial to prioritize it alongside the integration of solar and wind energy to establish a nexus between current master plans such as the South African Renewable Energy Masterplan (SAREM). Although alike plans briefly highlight local GH₂ developments, there is a necessity for GH₂-specific policies, especially those that emphasize factors such as the provision of incentives, the energy-water nexus, as well as licensing and authorizations for various GH₂ technology manufacturing. Furthermore, these policies should be rigorous and comprehensive to ensure their effectiveness, as current frameworks lack the enforceability of strong and binding laws (Pinto and Chege, 2024).

4.5.2 Brief appraisal of environmental and socio-economic gaps within existing South African policies and frameworks

The South African policy landscape provides a strong legal and institutional foundation for environmental management and climate action; however, there remains critical environmental and socio-economic nexus gaps in the context of GH₂ development. The National Environmental Management Act (NEMA) 1998, serves as the main environmental framework which connects core principles such as the precautionary principle, the polluter-pays principle, and the duty of care to prevent environmental degradation. Through its Environmental Impact Assessment (EIA) Regulations, NEMA requires that large projects especially those that are likely to negatively impact the environment through operations ought to undergo environmental authorization to predict and mitigate adverse impacts (Republic of South Africa, 1998, 2014). While the NEMA provides environmental precautions, there remains a gap for interventions regarding the impacts of GH₂ water use, biodiversity trade-offs, and infrastructure development, especially in vulnerable areas within South Africa.

To further support national efforts, the Climate Change Act 22 of 2024 further strengthens national response to climate risks by legislating the South Africa's commitment to reduce emissions by the development of national, provincial, and municipal climate change plans to ensure mitigation measures across all sectors. The Act further highlights carbon budgets to hold emitters accountable and promotes just transition principles that support socio-economic equity while aligning national with its international obligations such as the Paris Agreement. Although this is the case, the current Act focuses mainly on emission reduction without explicitly linking environmental mechanisms to GH₂ production and related pathways (Republic of South Africa, 2024).

In the context of the socio-economy, frameworks such as the Hydrogen Society Roadmap (2021) and the Just Energy Transition Investment Plan 2023-2027, recognize hydrogen's potential to stimulate job creation and industrial competitiveness. However, there is a gap in specifically addressing structural inequalities, regional disparities in GH₂ readiness, community participation, decentralized energy systems, and local manufacturing. Thus, a more integrated approach is needed to align environmental governance with socio-economic development policies for synergy in ensuring GH₂ development.

4.5.3 Policy and regulatory lessons from other countries

The implementation of comprehensive policies and regulatory frameworks is a critical component in developing a GH₂ economy in any country. This is particularly important for developing nations, where GH₂ economic ventures such as exports, refineries, petrochemicals, green steel, fuel, and cement production have the potential to significantly boost GDP (Hoang et al., 2023). Several countries, including China, Australia, and members of the European Union have demonstrated substantial progress by investing heavily in GH₂ production, infrastructure, export-oriented projects, and fuel cell technologies.

China is actively pursuing its GH₂ economy through a series of initiatives and dedicated plans aimed at decarbonizing the national economy. Central to this effort is the “Hydrogen Industry Development Plan (2021-2035),” which targets the production of 100,000-200,000 tons of GH₂ annually by 2025, with an associated reduction of up to 2 million tons of CO₂ emissions per year. By 2025, China also aims to deploy 50,000 hydrogen fuel-cell vehicles and establish a network of GH₂ refueling stations nationwide. The country plans widespread adoption of GH₂ by 2030, with a significant increase in utilization by 2035 (Hoang et al., 2023; International Energy Agency, 2023). In the short- and medium-term, China is advancing Basic Research Program projects, developing low-cost technologies for reforming methanol into hydrogen, exploring fuel cell applications, and conducting lab-scale GH₂ production. Long-term strategies, however, are expected to be implemented after 2050 (Hoang et al., 2023). Leveraging its position as the world's largest automobile market, China has also prioritized fuel cell vehicle development, having sold 2,737 vehicles and constructed 66 refueling stations by the end of 2019, alongside implementing several supportive policies in the same year (Yunzhe et al., 2020).

Australia is similarly advancing a globally competitive GH₂ economy through structured policy interventions. In 2019, the country released its National Hydrogen Strategy, which outlines the goal of establishing a safe, competitive, and innovative GH₂ sector to accelerate the transition to a decarbonized and sustainable future. The strategy emphasizes collaboration among government, industry, and educational institutions to develop a skilled workforce capable of supporting energy transition over the next two decades (Hoang et al., 2023). At the state level, New South Wales (NSW) released its Hydrogen Strategy in 2021, building on the national strategy. NSW aims to reduce GH₂ costs to under AUD 2.80/kg by 2030 and produce 110,000 tons annually, targeting the decarbonisation of hard-to-abate sectors such as transport, industry, and energy to achieve net-zero emissions by 2050 (NSW Government, 2021).

The European Union (EU) has also positioned GH₂ as a key component of its clean energy transition, particularly in the transport and steel sectors, with the potential to lower costs and accelerate decarbonisation (Hoang et al., 2023). In July 2020, the EU published the “Hydrogen Strategy for a Climate-Neutral Europe,” which outlined five priority areas (European Commission, 2020; Wolf and Zander, 2021):

• Investment support development—focuses on stimulating GH₂ production, utilization, and project pipelines.
• Support and enhancement of production and demand—aims to promote GH₂ adoption in transport and industry, enforcing low-carbon standards, and implementing pilot schemes for steel and chemical sectors.
• Development of GH₂ markets and infrastructure—for revising market regulations to reduce deployment barriers and support infrastructure development.
• Research and cooperation—to accelerate innovation, establishing research networks, engaging civil society, and implementing pilot projects across the GH₂ value chain.
• International cooperation—for pursuing partnerships with Southern and Eastern neighbors, the African Union, and other global stakeholders.

In conclusion, global GH₂ strategies reflect regional priorities and strengths. China emphasizes research and fuel cell vehicle deployment, leveraging its automotive market to advance clean mobility solutions. Australia focuses on workforce development, community engagement, and cost reduction to enhance competitiveness. The EU adopts a distinctive approach by accelerating international cooperation, particularly with the African Union, to support sustainable GH₂ value chains. Collectively, these examples highlight the importance of well-designed policies and regulatory frameworks in enabling GH₂ economies worldwide.

4.6 Opportunities and future prospects of green hydrogen in South Africa

Green hydrogen holds significant potential to transform multiple industrial sectors and the broader energy system, both within developing countries such as South Africa and globally. It provides a viable pathway for decarbonizing hard-to-abate industries and, more broadly, for reducing South Africa's carbon footprint while mitigating climate-induced environmental risks, including droughts and floods, which negatively impact economic development, social well-being, and livelihoods. Despite this promise, South Africa faces considerable challenges, including limited GH₂ infrastructure, insufficient technological and industrial capacity, a shortage of skilled labor, inadequate capital investment, gaps in actionable policies, and potential freshwater constraints.

Nevertheless, policy frameworks such as the Hydrogen Society Roadmap, the Green Hydrogen Commercialization Strategy, and the Just Energy Transition Implementation Plan recognize these barriers. If effectively implemented, these measures could position South Africa competitively within the global GH₂ market, attract substantial international investment and partnerships, and deliver key benefits, including economic growth, job creation, enhanced energy security, and improved environmental sustainability.

Industries such as iron, steel, and chemicals represent critical sectors where GH₂ integration could underpin decarbonisation strategies. Moreover, GH₂ presents opportunities for the transport sector through fuel cell-powered vehicles, for renewable energy storage systems, and as a buffer against national electricity shortages caused by load shedding during periods of heightened demand (Marouani et al., 2023).

Additionally, developing a GH₂ economy requires strong policies and regulatory frameworks, as demonstrated by leading countries such as China, Australia, and the European Union (EU). China's Hydrogen Industry Development Plan (2021-2035) focuses on decarbonisation through large-scale GH₂ production, fuel-cell vehicle deployment, and technology innovation. Department of Climate Change, Energy, the Environment and Water (2024) highlights collaboration between government, academia, and industry to build a skilled workforce and lower production costs by 2030. Similarly, the EU's Hydrogen Strategy for a Climate-Neutral Europe (2020) promotes investment, market development, and international cooperation, thus, providing lessons that can guide developing countries in structuring their own GH₂ pathways.

Moreover, South Africa is uniquely positioned to benefit not only from the deployment of GH₂ but also from the export of critical minerals, such as platinum and iridium, which are essential for electrolyser manufacturing. Given the country's abundant domestic reserves, leveraging this resource advantage could enhance South Africa's strategic role within the global GH₂ supply chain. This dual opportunity for developing a GH₂ economy while capitalizing on critical mineral exports has the potential to stimulate economic growth, accelerate industrialization, and strengthen the nation's competitive position in the expanding international GH₂ market (Uhorakeye et al., 2023).

5 Conclusion

This paper critically reviews the integration of GH₂ in South Africa, highlighting the challenges that must be addressed and the opportunities that can be leveraged to promote economic growth. As a developing economy heavily reliant on fossil fuels, South Africa faces both significant potential and considerable complexity in adopting GH₂. Using secondary data, this review examined the environmental and socio-economic implications of GH₂ adoption, identifying key barriers and potential pathways for its integration within the country's energy transition.

The analysis indicates that GH₂ development has substantial potential to reduce greenhouse gas emissions, particularly in the transport sector, provided systemic modifications are implemented. Furthermore, GH₂'s storage capabilities could help mitigate South Africa's ongoing power shortages, such as load shedding, while enhancing electrification rates. Industrial sectors involved in steel, ammonia, methanol, and hydrocarbon production could also benefit from decarbonization through GH₂ adoption. Despite challenges related to capital investment, infrastructure, skilled labor, and domestic electrolyser manufacturing capacity, South Africa has the potential to establish itself in the global GH₂ market, both as an exporter of GH₂ and ammonia and as a supplier of critical minerals required for electrolyser production.

Conventional hydrogen production methods remain environmentally detrimental, emphasizing the urgent need for cleaner alternatives. South Africa's abundant natural resources position it favorably to harness GH₂ in support of decarbonization. While technical challenges in production, storage, and transportation underscore the importance of ongoing research, development, and innovation, socio-economic and environmental considerations must also be prioritized. Electrolysis powered by renewable energy offers a feasible pathway for GH₂ production while supporting decarbonization in hard-to-abate sectors, such as transport and chemicals. However, this process is highly water-intensive, raising concerns given the country's well-documented water scarcity.

Although policies promoting a Just Energy Transition aim to ensure inclusivity, it remains unclear how marginalized communities will participate in the emerging GH₂ economy. Key socio-economic dimensions, such as employment creation and entrepreneurial opportunities, are yet to be clearly defined in the South African context. Simultaneously, market development is required to stimulate both demand and supply of GH₂, as the current market primarily targets European Union countries, with limited focus on domestic utilization. Addressing these challenges necessitates a coherent policy framework, substantial investment in infrastructure and advanced technologies, and the reskilling and upskilling of the workforce. While South Africa's legislative and policy frameworks provide a strong foundation for environmental governance and climate action, significant gaps persist in linking these mechanisms to GH₂ development, highlighting the need for improved integration between environmental regulation and socio-economic objectives.

Given that GH₂ development in South Africa remains in its early stages, further research is recommended to address existing knowledge gaps. In particular, detailed studies on the availability and strategic importance of South Africa's critical minerals are essential for understanding the ethical, supply chain, and geopolitical implications of their extraction and utilization in GH₂ infrastructure. Addressing these gaps will provide valuable insights into the role of critical minerals in supporting the growth of the GH₂ economy. Additionally, ensuring the accessibility of key resources such as water through research and the development of low-cost water production systems could enhance coastal GH₂ production. Similarly, socially inclusive programs that generate employment and business opportunities for local communities should be prioritized. This can be achieved through comprehensive social impact assessments and the formulation of strategies to mitigate these challenges.

Generative AI statement

The author(s) declared that generative AI was not used in the creation of this manuscript.

Any alternative text (alt text) provided alongside figures in this article has been generated by Frontiers with the support of artificial intelligence and reasonable efforts have been made to ensure accuracy, including review by the authors wherever possible. If you identify any issues, please contact us.

Publisher's note

All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article, or claim that may be made by its manufacturer, is not guaranteed or endorsed by the publisher.

Footnotes

Edited by: Yongda He, Shanxi University of Finance and Economics, China

Reviewed by: Emmanuel Kweinor Tetteh, Durban University of Technology, South Africa

Noluntu Dyantyi-Gwanya, Walter Sisulu University, South Africa