South Africa: Hydrogen Market 2024

Hydrogen Market Size in South Africa

The South African hydrogen market shrank to $X in 2022, falling by -2.1% against the previous year. The market value increased at an average annual rate of +1.4% from 2012 to 2022; however, the trend pattern remained consistent, with somewhat noticeable fluctuations throughout the analyzed period. As a result, consumption attained the peak level of $X. From 2015 to 2022, the growth of the market remained at a somewhat lower figure.

Hydrogen Production in South Africa

In value terms, hydrogen production contracted to $X in 2022 estimated in export price. The total output value increased at an average annual rate of +1.3% from 2012 to 2022; however, the trend pattern remained relatively stable, with only minor fluctuations in certain years. The pace of growth appeared the most rapid in 2014 with an increase of 25% against the previous year. As a result, production reached the peak level of $X. From 2015 to 2022, production growth failed to regain momentum.

Hydrogen Exports

Exports from South Africa

In 2022, shipments abroad of hydrogen was finally on the rise to reach X cubic meters after three years of decline. In general, exports, however, continue to indicate a abrupt shrinkage. The growth pace was the most rapid in 2018 with an increase of 22,441%. As a result, the exports attained the peak of X cubic meters. From 2019 to 2022, the growth of the exports remained at a somewhat lower figure.

In value terms, hydrogen exports skyrocketed to $X in 2022. Overall, exports, however, continue to indicate a drastic downturn. The pace of growth appeared the most rapid in 2018 when exports increased by 18,173% against the previous year. As a result, the exports reached the peak of $X. From 2019 to 2022, the growth of the exports remained at a lower figure.

Exports by Country

Burkina Faso (X cubic meters) was the main destination for hydrogen exports from South Africa, with a 46% share of total exports. Moreover, hydrogen exports to Burkina Faso exceeded the volume sent to the second major destination, Mozambique (X cubic meters), twofold. The third position in this ranking was held by Namibia (X cubic meters), with a 10% share.

From 2012 to 2022, the average annual rate of growth in terms of volume to Burkina Faso amounted to +501.2%. Exports to the other major destinations recorded the following average annual rates of exports growth: Mozambique (+0.7% per year) and Namibia (-5.0% per year).

In value terms, Burkina Faso ($X) emerged as the key foreign market for hydrogen exports from South Africa, comprising 46% of total exports. The second position in the ranking was held by Mozambique ($X), with a 22% share of total exports. It was followed by Namibia, with a 10% share.

From 2012 to 2022, the average annual rate of growth in terms of value to Burkina Faso totaled +614.8%. Exports to the other major destinations recorded the following average annual rates of exports growth: Mozambique (+3.1% per year) and Namibia (-2.7% per year).

Export Prices by Country

The average hydrogen export price stood at $X per cubic meter in 2022, increasing by 19% against the previous year. In general, export price indicated a temperate expansion from 2012 to 2022: its price increased at an average annual rate of +2.4% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, hydrogen export price increased by +85.4% against 2018 indices. The pace of growth was the most pronounced in 2019 when the average export price increased by 21% against the previous year. The export price peaked in 2022 and is likely to see steady growth in years to come.

Average prices varied noticeably for the major overseas markets. In 2022, amid the top suppliers, the highest price was recorded for prices to Tanzania ($X per cubic meter) and Namibia ($X per cubic meter), while the average price for exports to Mozambique ($X per cubic meter) and Burkina Faso ($X per cubic meter) were amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Burkina Faso (+18.8%), while the prices for the other major destinations experienced more modest paces of growth.

Hydrogen Imports

Imports into South Africa

Hydrogen imports into South Africa soared to X cubic meters in 2022, growing by 130% against 2021. Overall, imports, however, recorded a deep reduction. The most prominent rate of growth was recorded in 2020 when imports increased by 462% against the previous year. Over the period under review, imports hit record highs at X cubic meters in 2014; however, from 2015 to 2022, imports remained at a lower figure.

In value terms, hydrogen imports surged to $X in 2022. Over the period under review, imports, however, showed a abrupt decline. The most prominent rate of growth was recorded in 2020 with an increase of 428%. Imports peaked at $X in 2014; however, from 2015 to 2022, imports remained at a lower figure.

Imports by Country

In 2022, the UK (X cubic meters) constituted the largest hydrogen supplier to South Africa, accounting for a 63% share of total imports. Moreover, hydrogen imports from the UK exceeded the figures recorded by the second-largest supplier, Italy (X cubic meters), threefold. Germany (X cubic meters) ranked third in terms of total imports with a 15% share.

From 2012 to 2022, the average annual growth rate of volume from the UK amounted to -2.9%. The remaining supplying countries recorded the following average annual rates of imports growth: Italy (+87.5% per year) and Germany (-2.9% per year).

In value terms, the UK ($X) constituted the largest supplier of hydrogen to South Africa, comprising 63% of total imports. The second position in the ranking was held by Italy ($X), with a 19% share of total imports. It was followed by Germany, with a 15% share.

From 2012 to 2022, the average annual rate of growth in terms of value from the UK totaled -13.6%. The remaining supplying countries recorded the following average annual rates of imports growth: Italy (+63.3% per year) and Germany (-13.6% per year).

Import Prices by Country

In 2022, the average hydrogen import price amounted to $X per cubic meter, shrinking by -42.7% against the previous year. Over the period under review, the import price saw a abrupt curtailment. The pace of growth was the most pronounced in 2017 when the average import price increased by 3.9% against the previous year. Over the period under review, average import prices attained the peak figure at $X per cubic meter in 2012; however, from 2013 to 2022, import prices stood at a somewhat lower figure.

Average prices varied noticeably amongst the major supplying countries. In 2022, amid the top importers, the countries with the highest prices were Germany ($X per cubic meter) and the UK ($X per cubic meter), while the price for the United States ($X per cubic meter) and Italy ($X per cubic meter) were amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the United Arab Emirates (-5.7%), while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform

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