South Africa's hydrogen sector presents a unique CBAM dynamic: grey hydrogen carries a high default emission value (10.9 tCO₂/tonne), while green hydrogen produced with renewable electricity could carry near-zero embedded emissions — creating a significant competitive advantage.
South Africa's DTIC Hydrogen Society Roadmap targets SA as a major green hydrogen exporter to the EU by 2030. Sasol is exploring blue and green hydrogen pathways. The Hydrogen South Africa (HySA) programme is developing local capacity. Enertrag SA and other renewable energy developers are advancing green hydrogen projects in the Northern Cape and Western Cape.
Determine hydrogen production pathway: green (electrolysis), blue (SMR + CCS), or grey (SMR)
For green hydrogen: calculate renewable electricity consumption and verify near-zero emissions
For grey/blue hydrogen: calculate steam methane reforming process emissions
Engage EU importers on CBAM certificate requirements for hydrogen imports
Consider green hydrogen certification under EU Renewable Energy Directive (RED II)
Green hydrogen is SA's CBAM opportunity, not just a challenge. Near-zero embedded emissions vs grey hydrogen's 10.9 tCO2/t default creates a massive cost advantage for green producers.
CBAM Cost Estimate
Key SA Exporters