The use of platinum group metals- (PGMs-) based fuel cells in electricity and mobility applications is expected to provide ample commercial opportunities for South Africa, in line with worldwide trends to decarbonise electricity generation and transport.

However, the high cost of these technologies, coupled with limited markets to sell them into, dampens the business case for scaling up local manufacturing.

Commercial hydrogen fuel cell trains have been introduced in Germany, Denmark, the Netherlands, France and Canada, with plans to introduce more, notes policy think-tank Mapungubwe Institute for Strategic Reflection executive director Joel Netshitenzhe.

China is aiming to produce two-million hydrogen fuel cell vehicles by 2030 and automotive manufacturer Toyota and its partners aim to increase hydrogen fuel tank production from 3 000 a year to 30 000 a year.

Locally, fuel-cell-powered forklifts and underground dozers are being tested and the global market for fuel cell products is expected to be large, with the Japanese fuel cell market estimated to be worth $70-billion by 2050, he says.

However, South Africa faces considerable challenges to cultivate the necessary demand and develop the productive capacity, support and infrastructure to increase its participation in and benefits from the hydrogen economy.

The cost of hydrogen systems remains high, which reduces the fiscal space to accommodate the nascent industry. This is reflected in the draft Integrated Resource Plan 2018, which does not include any allocations for fuel cell technologies, Department of Energy electricity and energy efficiency regulation director Matthews Bantsijang emphasises.

However, a Ministerial determination was issued to procure 200 MW a year of hydrogen generation systems, which will support local production, he says.

Department of Science and Technology (DST) hydrogen and energy director Dr Cosmas Chiteme highlights that much of the expertise required to industrialise PGM technologies is available in the country and could be leveraged. While the membrane electrode assemblies, which contain the PGM catalyst, are about 30% of the cost of a fuel cell, South Africa’s engineering expertise can help to reduce the remaining 60% balance-of-plant costs.

The DST’s Hydrogen South Africa (HySA) initiative has produced 49 MSc and PhD graduates and its centres of competence, in partnership with universities and science councils, continue to produce systems and technologies for the industry, including metal hydride compression, electrochemical compression and liquid organic hydrogen carriers for liquid storage and distribution.

The HySA initiative has also produced commercial products that have been spun out into companies, he adds.

Fuel cells could serve a range of functions as part of a diverse energy mix, because fuel cell generation can be built to be nonvariable and integrated to support variable and intermittent generation to provide storage and to meet peak demand, says platinum producer Impala Platinum (Implats) market development manager Fahmida Smith.

Additionally, fuel cells are highly efficient and can use diverse energy sources, including natural gas, biogas, methanol water or pure hydrogen.

“The fuel cell market is a nascent market and Implats’ projects are considering backwards integration of the technology into existing South African applications. Fortunately, electric drivetrains are required for fuel cell electric vehicles,” she says.

The South African Post Office has converted some of its electric scooters to use fuel cells to extend their range, and the refuelling stations use metal hydride canisters for hydrogen storage, adds Chiteme.

The application of fuel cell technologies for longer distance road and rail freight is commercially viable, but requires refuelling infrastructure and these questions are at the heart of industrialisation considerations, notes Smith.

Implats supports the development of a PGMs special economic zone (SEZ) to provide a platform for the development, commercialisation and industrialisation of PGMs technologies, she adds.

Gauteng industrial development zone (IDZ) chief investment officer Maidei Matika cites the Springs IDZ, in Ekurhuleni, as the likely PGMs SEZ, because it has access to gas and hydrogen gas pipes in the area, and hosts PGMs industries, including an Implats refinery.

The SEZ concept is geared to promote export and the aim is to produce intermediate components, such as the membrane electrode assemblies, and, over time, higher-value PGMs components, including products developed by HySA and local industry participants, for global value chains and markets, she concludes.