Eskom Launches Green Hydrogen Pilot Project as Part of Decarbonisation Strategy

21 May 2025

Eskom Tenders for Green Hydrogen Pilot Facility in Decarbonisation Push

Eskom has issued a tender for the construction of a pilot renewable green hydrogen facility at its Research, Testing and Development unit in Johannesburg, marking a significant step in its transition towards cleaner energy solutions.

Green Hydrogen Initiative Details

The pilot facility forms part of Eskom's broader strategy to achieve net-zero carbon emissions by 2050. According to the utility, green hydrogen presents "an excellent medium to long-term energy storage solution" that could enhance renewable energy deployment in South Africa.

Eskom Group Chief Executive Dan Marokane stated that the utility is "following a differentiated approach and multiple pathways to move from a high-carbon to low-carbon economy" and is "aggressively seeking creative, technology-led solutions" to accomplish this transition.

The facility will enable Eskom to understand the full hydrogen value chain from production to utilization and prepare the organization for potential wider adoption of the technology. It will also provide insights into relevant legislative requirements and regulations while developing internal expertise.

Integration with Existing Research Infrastructure

This new initiative builds upon Eskom's existing decarbonisation research at its 400kW solar photovoltaic research facility, which already includes battery test plants. The expansion into green hydrogen represents a logical progression in the utility's research portfolio.

Last month, Eskom signed a Memorandum of Understanding with Exxaro Resources focused on collaboration in carbon emissions reduction, air quality improvements, and just transition initiatives. The utility has also recently tendered for assistance in establishing a separate Renewable Energy Business to accelerate deployment of renewable solutions.

Outlook for South Africa's Hydrogen Strategy

Eskom's interest in hydrogen technology isn't new. The company has been involved in green hydrogen development since 2020 and contributed to South Africa's Hydrogen Society Roadmap in 2021. This pilot project represents a practical implementation phase of that longer-term vision.

The utility currently reports having "an executable pipeline of 2GW of clean energy projects by 2026 and over 20GW in development," indicating substantial planned investments in diversifying South Africa's energy mix beyond coal generation.

However, this hydrogen initiative comes at a time when Eskom continues to face operational challenges. While loadshedding has been suspended for extended periods in recent months, the utility's Energy Availability Factor (EAF) has declined slightly to 56.36% from a previous 58.05%, remaining well below the targeted 70% level.

Balanced Approach to Energy Transition

Eskom emphasizes it is pursuing a "balanced energy mix" for long-term energy security. This approach includes continuing to operate existing coal and nuclear assets while introducing cleaner technologies such as gas, renewables, battery storage, and hydrogen to meet growing electricity demand sustainably.

The Research, Testing & Development business unit is tasked with finding technology solutions that can be applied within Eskom to improve operations, manage emissions, and enable greenhouse gas abatement. The hydrogen pilot facility represents one part of this broader research portfolio.

Key Terms Explained

Green Hydrogen: Hydrogen produced through electrolysis powered by renewable energy sources such as solar or wind. Unlike grey or blue hydrogen, green hydrogen production creates no carbon emissions. It can be used for energy storage, power generation, or as fuel for transportation.

Electrolysis: The process of using electricity to split water into hydrogen and oxygen. In green hydrogen production, this electricity comes from renewable sources.

Energy Storage Solution: Technologies that store energy produced at one time for use at a later time. Hydrogen can store energy for much longer periods than batteries, making it suitable for seasonal storage.

Energy Availability Factor (EAF): The percentage of time a power plant is available to produce electricity at full capacity. Higher percentages indicate more reliable generation capacity.

Just Transition: An approach to environmental sustainability that seeks to ensure the benefits of the transition to a green economy are shared widely, while supporting those who may lose livelihoods as high-carbon industries are phased out.