South Africa’s state-run power utility Eskom has issued at invitation to tender (ITT) for the construction of a pilot renewable green hydrogen facility (RHF) at its Research, Testing and Development (RT&D) unit in Johannesburg.

In a press statement on May 21, the utility said that renewable green hydrogen production was a key priority for South Africa in achieving net-zero carbon emissions by 2050. “This pilot will directly contribute to informing Eskom’s decarbonisation strategy and potentially enable renewable energy deployment as it presents an excellent medium to long-term energy storage solution,” Eskom stated.

According to Eskom, establishing a pilot RHF will allow it to explore the possible integration of green hydrogen into the energy mix, while also offering an opportunity to gain insight into the legal and regulatory frameworks governing renewable hydrogen. It will also support internal skills development.

While green hydrogen itself is not a primary source of energy like sunlight, wind or fossil fuels, it plays a crucial role as energy carrier in enabling the use of renewable energy in sectors that are hard to electrify directly.

The hydrogen, produced through electrolysis by using renewable electricity from solar or wind power, can be stored, transported, and used later to generate electricity, power fuel cells, or serve as an industrial feedstock, releasing energy when needed.

According to Eskom group CEO Dan Marokane, the utility is following a differentiated approach and multiple pathways to move from a high-carbon to low-carbon economy. “We are aggressively seeking creative, technology-led solutions to achieve this,” he said in the statement.

“This is about harnessing clean energy for inclusive economic growth. The pilot facility will help our research teams understand hydrogen’s full value chain, from production to use, and ensure we’re ready to play a leading role in the transition responsibly and inclusively,” Marokane added.

The pilot RHF builds on Eskom RT&D’s decarbonisation work at its 400-kW solar PV research site with battery test plants that have provided valuable research for Eskom’s operations.

Recently, Eskom signed an MoU with South African coal miner Exxaro Resources to collaborate on projects focused on carbon reduction, air quality, and a just transition. The utility is also fast-tracking the creation of a separate renewable energy business and has issued an ITT for experienced firms to support this effort. According to the statement, Eskom has recognised the potential of green hydrogen since 2020 and helped shape South Africa’s Hydrogen Society Roadmap in 2021 and related subsequent national strategies.

“Eskom continues to pursue a balanced energy mix to ensure long-term energy security. While continuing to operate existing coal and nuclear assets, the organisation is introducing cleaner technologies such as gas, renewables, battery storage, and hydrogen to meet growing electricity demand in a sustainable way,” the utility said.

Eskom currently has 2GW of clean energy projects ready for execution by 2026 and more than 20GW in various stages of development. This, according to the utility, reflects its commitment to diversifying the energy mix, drawing in investment, and delivering lasting benefits for all South Africans.