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Hydrogen production in South Africa in 2026 is estimated at approximately 0.5 to 0.6 million tonnes per year, positioning the country as the largest hydrogen producer on the African continent. Production is deeply embedded within South Africa’s energy and industrial system, with hydrogen primarily serving synthetic fuels, chemicals, refining and metallurgical applications.
Production volumes are governed by coal- and natural-gas-based hydrogen systems, supported by long-established industrial infrastructure. Hydrogen output is largely consumed internally within integrated industrial complexes, reflecting stable utilisation profiles rather than merchant hydrogen trade dynamics. Alongside these established systems, electrolysis-based hydrogen capacity is being integrated into the production landscape, supported by renewable power expansion and infrastructure planning.
From a production perspective, hydrogen pricing reflects feedstock availability, electricity reliability, plant efficiency and integration with downstream conversion assets. Output growth is shaped by industrial operating rates, energy system constraints and the gradual incorporation of alternative production routes aligned with long-term transition objectives.
Industrial hydrogen dominates production allocation due to its role as a feedstock for synthetic fuels and chemicals. Hydrogen derivatives, particularly synthetic fuels and ammonia, are integral to production planning, as they allow hydrogen to be embedded within large-scale conversion processes and exported indirectly.
From a production standpoint, continuity, pressure stability and integration with conversion units are critical requirements.
Coal gasification remains the dominant hydrogen production route due to scale, integration and historical investment. SMR provides supplementary capacity where gas infrastructure is available. Electrolysis-based hydrogen is being introduced alongside these systems to diversify feedstocks and support long-term production resilience.
From a production perspective, parallel operation of multiple routes enables output stability under varying feedstock and power conditions.
Industrial and derivative uses define baseload hydrogen production, requiring continuous output and high utilisation. Energy and mobility applications influence incremental allocation but do not determine core production capacity.
This region hosts the majority of hydrogen production capacity, anchored by coal-based synthetic fuel and chemical complexes. Production here benefits from established infrastructure and integrated conversion assets.
The Northern Cape supports hydrogen production potential through renewable power availability, land access and proximity to export corridors. Production development here is increasingly linked to electrolysis-based systems.
These zones support hydrogen production through port access, industrial demand and derivative export potential.
South Africa’s hydrogen supply chain begins with coal, natural gas and electricity procurement, followed by hydrogen production, compression, storage and conversion into synthetic fuels or ammonia. Most hydrogen is consumed internally within integrated industrial systems.
Cost structure is dominated by feedstock pricing, electricity reliability, plant efficiency and utilisation rates. Storage and transport costs are secondary due to co-location of production and consumption, while derivative conversion shapes trade economics.
Pricing formation reflects feedstock markets, electricity conditions and long-term industrial contracts rather than spot hydrogen pricing.
South Africa’s hydrogen production ecosystem includes mining companies, synthetic fuel producers, chemical manufacturers, utilities, port authorities and policymakers. The ecosystem is characterised by large-scale integration, feedstock intensity and transition-driven diversification.
Strategic themes include maintaining production reliability under power constraints, diversifying feedstocks, integrating renewable-linked electrolysis and aligning hydrogen production with export-oriented derivative strategies.
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South Africa Hydrogen Production Capacity and Growth Outlook
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