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South Africa’s Green Hydrogen Summit: Civil society calls for honest discussion on tangible benefits of green hydrogen development
As South Africa prepares to host the third South African Green Hydrogen Summit from 12-13 June 2025, civil society organisations remain cautious of the continued hype and inflated promises surrounding green hydrogen projects in the country.
While the government continues to tout the economic potential of green hydrogen – from job creation and industrialisation to GDP growth – community organisations are asking for full transparency, proper consultation and evidence of tangible benefits on the ground.
Beyond the hype
In 2023, civil society tabled their “Hopes and Fears” around green hydrogen, capturing community sentiments which include the potential for sustainable employment, energy access and local development. However, fears such as redirection from communities of water resources, displacement, destruction of marine life, environmental harm, lack of consultation and public resources being funnelled into risky, export-driven projects loomed larger.
After the release of the Hydrogen Society Roadmap, the Green Hydrogen Commercialisation Strategy (GHCS), and the fast-tracking of projects through the Infrastructure Development Act, there is a call from community organisations for actual feedback on progress on the back of all these promises.
“Over the last few years we have seen the green hydrogen bubble busting, both here and abroad,” says the director of programmes with Mining Affected Communities United in Action (MACUA) Fatima Vally. “A number of green hydrogen developments that the then Minister of Public Works, Patricia de Lille, designated as special infrastructure projects (SIPs) in December 2022 have either stalled or been paused”.
Green hydrogen projects are stalling and not coming on stream. What we see is an exploitation of regulatory changes that now allow for private sector self-generation of electricity, with no socio-economic development criteria such as the ones in the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). “Unfortunately, government ministers and President Cyril Ramaphosa speak glowingly about green hydrogen projects, giving an impression that the developments are going ahead,” Vally continues. “Stonewalling and revelations that the projects were no longer proceeding is the response that community organisations that are part of a loose civil society network called Hydrogen Watch (H2Watch) have received when they enquired – away from the glare of the media – on what was happening in their localities”.
In a letter from April 2024 to MACUA, AngloAmerican indicated that “a decision was made to demobilise the prototype hydrogen powered haul truck”. The project anchored the proposed Hydrogen Valley in Mogalakwena in Limpopo.
In July 2024, the developer Enertrag that was to establish an e-methanol plant in Humansdorp told communities around the area that the project has been paused.
In an email response to a request to present at a Congress of South African Trade Unions (COSATU) referring to green hydrogen, a Sasol official stated in March 2025: “While it represents a credible and potentially lucrative industrial horizon for South Africa in coming decades (particularly as a mid-horizon export sector and as a long-horizon replacement for gas), green H2 will not be imminently economical and will not solve our near-term transition challenge”. Sasol’s second thoughts on use of green hydrogen to reduce its greenhouse gas emissions were confirmed to investors at the company’s Capital Markets Day held on 20 May this year.
The fragility of South Africa’s green hydrogen vision reflects global developments in the sector. In Europe and Australia, green hydrogen projects have been delayed or scaled back due to high costs, weak demand and uncertain returns. Only about 10% of projects worldwide have reached final investment decision. In China, electrolyser production is being cut due to oversupply and low market demand, raising doubts about the sector’s near-term viability. Electrolysers are critical devices used to split water into hydrogen and oxygen using electricity.
Green hydrogen without greenwashing
Civil society groups are also sounding the alarm on the risks of fast-tracking projects without full stakeholder participation. They argue that taking the Green Hydrogen Commercialisation Strategy to the National Economic Development and Labour Council (NEDLAC) is not enough. “Green hydrogen development policies and strategies need wider consultation beyond NEDLAC. There must be meaningful consultations with communities on the ground that will be impacted and affected,” says groundWork’s climate and energy justice campaigner, Siphesihle Mvundla.
H2Watch also believes that, as part of the hype, there is an exaggeration of green hydrogen applications. Beyond use in hard-to-abate sectors such as steel, there are suggestions to utilise green hydrogen and its derivatives in sectors where it will be highly inefficient to introduce the energy carrier. “Green hydrogen may have a limited role to play. Even in cases where green hydrogen is, for an example, used to decarbonise steelmaking, it is vital to mention the impact of high energy costs in its production. It may be efficient to use green hydrogen for green steel production, provided renewable energy and green hydrogen are produced close to each other,” Mvundla continues.
A flawed development model
Unless corrected, the green hydrogen push threatens to replicate extractive, exclusionary development models witnessed in mining and large-scale renewable energy projects. Special Economic Zones – where many hydrogen projects are being clustered – offer tax breaks and public infrastructure subsidies, but little clarity exists on whether South Africans will receive a fair return on these investments. Worse still, civil society warns that South Africa may take on significant public debt to bankroll speculative projects that might never materialise.
H2Watch is concerned that project announcements are always loud, yet the details – especially those affecting people’s land, water and livelihoods – are not discussed openly. “The Summit continues to be a platform of high-level deal-making and international investment pledges without clarifying what real, lasting benefit South African communities will gain – or who will carry the risks,” says Zethu Hlatshwayo from the Khuthala Environmental Care Group (KECG).
“We don’t need another echo chamber of green hydrogen optimism – we need concrete updates on project progress, community consultations and public spending.”
An urgent call for accountability and inclusion
Civil society is calling for clear and transparent updates on all designated green hydrogen projects, including public access to proposals, deals made and financial commitments. This includes real, inclusive consultation through NEDLAC and directly with affected communities. Designation and fast-tracking is not a license to bypass environmental impact assessments on communities and their land and water rights, and the potential debt burden associated with these developments.
“Green hydrogen may have a role to play in decarbonisation, but it cannot come at the cost of social justice, environmental integrity and public accountability,” says Hlatshwayo. “Civil society must have a meaningful seat at the table and South Africa’s green transition must be guided by principles of justice, transparency and inclusive decision-making.”
- In light of the fact that green hydrogen developments happen with no specific framework on how communities stand to benefit, H2Watch demands a negotiated Community Benefit Sharing Framework, outlining clear obligations of green hydrogen developers to communities.
- H2Watch calls for a speedy development of terms of reference for the establishment of a Green Hydrogen Advisory Council mooted at the time Cabinet adopted the green hydrogen strategy; spelling out the role and powers of such a council.
- The network also calls for public revelations of South Africa in international negotiations on a green hydrogen standard. Declaring South Africa’s stance is vital. In its “Hopes and Fears” document, H2Watch made it clear that green hydrogen should address climate mitigation and be produced using renewable energy and from water in sustainable ways. H2Watch is aware of fossil fuel corporations’ attempts to pass hydrogen produced using fossil fuels as ‘low-carbon’ hydrogen.
What underpins these calls are direct consultations and negotiations with communities. “The right of communities to give free, prior and informed consent (FPIC) must be respected,” says Natural Justice’s Lauren Nel. “Public participation and requirements of prior consent, such as in the Interim Protection of Informal Land Rights Act (IPILRA), must guide green hydrogen development.”
For further information, contact:
- Zethu Hlatshwayo (Khuthala Environmental Care Group) – 069 585 7223/082 930 9312
- Fatima Vally (Mining Affected Communities United in Action) – 076 838 3038
- Lauren Nel (Natural Justice) – 079 883 5995
- Tengo Tengela (Congress of South African Trade Unions) – 066 141 6783
- Tsepang Molefe (groundWork) – 074 405 1257
H2Watch includes organisations such as Earthlife Africa, the Economic Justice Network, Kuthala Environmental Care Movement, groundWork (groundwork.org.za/), Mining Affected Communities United in Action (MACUA-WAMUA), Southern African Faith Communities’ Environment Institute (SAFCEI), Natural Justice, WoMIN (https://womin.africa/) and Vaal Environmental Justice Alliance (VEJA).
ENDS
