Hydrogen South Africa (HySA)

Cordellia Sita, PhD

Hydrogen South Africa

Department of Science & Technology

11th Fuel Cell Forum 26-27 September 2011

Stuttgart, Germany

…Presentation Outline

• Global Context

• South Africa Context

• Global PGM Resources

• Strategy in Brief

• Strategic Goals

• HySA Implementation

• Implementation Agencies and Model

• Role of PPPs

• Ultimate Goal

Global Context

• Environmental Protection

– reduction in greenhouse gas emissions through

energy diversification, in line with the Climate Change

– reduction in global primary energy use (through

energy efficiency and demand side management)

– Increased use of renewable energy in the overall mix

(introduction of alternative drive systems and bio-

fuels for automobiles)

• Security of Supply

– Mitigate dependency on energy imports

• Competitiveness

– Open and liberalised market

South African Drivers

• informed by the need for the South African

economy to migrate from a resource based to

a knowledge based economy;

• the need for South Africa to extract more

value from its natural resources

• DST developed the National Hydrogen and

Fuel Cell Technologies Research

Development and Innovation Strategy

(Hydrogen South Africa) acronym HySA

PGM Resources

World platinum resources: Cawthorn, 1999

Zimbabwe

Finland

Russia

North America

South Africa

Fuel cells catalytic properties, substitutions investigated,

platinum still shows superior properties

Current investment in R&D is equivalent to billions of US$

annually (outside of SA)

Additional Pt resources likely

• Old data was based on 1.2km max depth

• Northam Platinum already mine at 2+km

• Bushveld drilled down to 3.3km

• Gold Mines in SA operate at ~4km already

• Some estimates* say 64000 tonnes Pt in SA

TIAX Study D0034 “Pt Availability & Economics for PEMFC Commercialisation” December 2003

…The Mining and Minerals

Sector Downstream Dimension

“We have always been a supplier of minerals to the world,

what we are now finding is that the world economy is

changing rapidly and is expecting an economy such as ours

to be able to produce higher-value manufactured products.

(Min. Alec Erwin)

• SA holds a significant share of the worlds minerals

resources and production

• However, we have not been able to use this comparative

advantage to attain a satisfactory economic and social

performance

Our Hydrogen Vision

“ to create knowledge and human resource

capacity that will develop high value commercial

activities in hydrogen and fuel cell technologies

utilising local resources and existing know-how”

From a burden to an opportunity for economic growth

and job creation

TECHNOLOGY IS A KEY ELEMENT IN REACHING

ENERGY AND CLIMATE CHANGE POLICY

OBJECTIVES

Strategic Goals

• Develop local cost competitive hydrogen generation solution based on existing know-how

• Wealth creation through value added manufacturing of PGM catalysis, goal-supply 25% of catalysts demand by 2020

• Promote equity and inclusion in the economic benefits of South Africa’s resources

DST

NWU / CSIR UCT / MINTEK UWC

HySA Implementation

Hub & Spokes Model

International

Companies

International

RDI centres

HUB

H2 generation,

delivery &storage

PGM Catalysis

For HFCTSystems

Integration &

Technology

Validation

HySA

Systems

HySA

Infrastructure

HySA

Catalysis

Advantage: bringing global and South African expertise together

Overall Structure

Why hub and spoke

model

• Hub establishment-top down directed

process

• a mechanism to ensure partnerships of

leading South African scientists, research

institutions, private sector companies, and

selected international partners to deliver

on the long term goals of HySA

Why hub and spoke

model (continued)

• Spoke establishment competitive

process allowing any of the players to

lead in their areas of expertise

• Ongoing calls for project proposals

Objectives of the Centre

Deliberate Government active participation(15 year funding commitment) in the establishment of a new industry

clusters in HFC technologies

• Encourage industry participation at both R&D and commercial level with an emphasis on new industry development

• Competence Centres are far more than networks they involve

– contractual relationships between the parties

– clear short, medium and long-term innovation objectives

– the establishment of specialised infrastructure

– shared staffing between partners

– shared RDI agenda with clearly defined product outputs

– commitment to commercialisation from the starting point

– proactive attention to intellectual property issues

Private

Equity

Basic Research Applied Research Tech Development Manufacturing

Innovation Chain

IP V

alu

e

Bridging the

“Chasm”

Science Councils

UniversitiesIndustry

Pe

rfo

rme

rs

DST Participation

Establishment of PPPS

Inter-

governmental

Committee

Industry

Research Grouping

(academia &private sector)

DST

R,D&C PPP

SA Gov

DTI DSTDoE DMR DPE.

Inter-Governmental Committee

DST

(Custodian of HySA)

R&D Commercialisation

Industry GroupingPrivate Sector

HySA Centres

DEDDNT

PGM Producers

Infrastructure developers

Potential investors

End users(utilities, cellphone

towers etc)U&SC

PPP Overview and role of

each grouping

Advantages of PPPs

• Bridging role between industry and U&SC by government, whilst being responsible for the coordination of the efforts of each grouping to ensure the constant flow of expertise, investment, intellectual property and revenues from the commercialisation of IP between all three

• Co-ownership of the IP created between public and private partners stimulates a stronger bond between the two and is a catalyst for both parties to invest more in R&D

• Facilitates the development and growth of expertise and knowledge transfer in the local economy.

• Such a structure will ensure the development of local industry clusters in strategic geographical concentrations.

• Government will eventually exit and sell her equity to private investors to ensure successful industrialisation

DST

R&D FundingInvestment

JV Co

CSP

PGMD

Fund

3rd Party

Investments

IP Co Op Co

NewCo1

(CoC 1)

NewCo2

(CoC 2)

NewCo3

(CoC 3)

Sub JV

3rd Party

Investments

CSP

R&D

COC 1 COC 2 COC 3

HUB & Funding

Agreements

CommercialisationR&D

UNW CSIR

R&D SP

International

R&D SP local

R&D Spoke

Agreements

Technology transfer &

HCD Agreements

Technology

Partner

POBoard

IMC

Ultimate Goal

Advantages

• Interaction at an R,D&C level between the

private sector and the academia

• Ensure that an Industrial Cluster is

established in HFCT

• Create Jobs for the human Capital being

developed by the Centres of Competence

• Equity and Wealth sharing through

participation of SME in the resulting joint

venture companies

THANK YOU