S. Africa to invest $49M in fuel cells, hydrogen

The South African government has announced plans to spend ZAR 400 million ($49.3 million) on research into hydrogen and fuel cells during the next three years.

The bulk of the money is planned for the development of technology and expertise in the sector, while 20 percent is expected to fund private-sector research.

The government is trying to boost the demand for fuel cells because they use platinum catalysts, which are made from platinum-group metals that are natural resources in South Africa. The government said it hopes to supply a quarter of the global catalyst demand by 2020.

Many companies see South Africa as an entry point into the the African market (see Plug Power sells 120 fuel cell power systems in South Africa). Much of the focus there has been on water or transportation technologies (see Biofuel from algae startup on shaky ground and Finavera selecting site for 20MW South African wave project).

Officials said the hydrogen research would focus on developing  high-temperature, gas-cooled nuclear reactors and coal gasification technology.

The government established three centers to focus the efforts at the University of the Western Cape, the Council for Scientific and Industrial Research and the University of the North West. Officials encouraged private investment in the centers. State-owned Eskom and PetroSA have reportedly made investments.

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