Vincenzo Giordano, Director, Sustainability Solutions,

Diego Ibarra,

Managing Director,

ENGIE IMPACT

"The development of a green hydrogen economy can have a double effect – decarbonization and boosting the demand and production of minerals, such as platinum, that are essential to the technology developments for the energy transition."

How is Engie contributing to the hydrogen valley project?

VG: The hydrogen valley is the corridor ranging from the Mogalakwena region near Mokopane to Johannesburg and Durban. The idea is to try and concentrate hydrogen demand in the same area so that you can benefit from economies of scale and reduce costs to make hydrogen more competitive. We also want to identify various applications for hydrogen to have a diverse demand.

ENGIE Impact is delivering the study to assess which hydrogen hubs are feasible to develop. We identified a business case for three specific hubs where we think there is potential for bringing together multiple offtakes and locally producing green hydrogen – the Mogalakwena mining region; Johannesburg; and Durban. The feasibility study assessing the potential demand and production possibilities for green hydrogen should be completed by August 2021. We hope to have completely developed the hydrogen valley project by 2030.

Green hydrogen export is an exciting opportunity for South Africa. There are ports in South Africa that can serve this purpose as we see a growing demand for green hydrogen globally.

To what extent is South Africa leading the decarbonization revolution?

VG: South Africa is the leading country in Africa in terms of platinum mining. Platinum is a crucial mineral for electrolyzer fuel cells. The development of a green hydrogen economy can have a double effect – decarbonization and boosting the demand and production of minerals, such as platinum, that are essential to the technology developments for the energy transition.

DI: The hub approach provides decentralized solutions to energy challenges and microeconomic incentives such as job creation.

Alex Caldwell, Head of Mining,

Alistair Jessop,

Head of Power,

VIVO ENERGY

"Vivo Energy looks to provide a solution where we install, own, and operate the hybrid power part of the plant."

Can you elaborate on Vivo Energy's sustainable solutions offered to the mining industry?

AJ: Vivo Energy looks to provide a solution where we install, own, and operate the hybrid power part of the plant. We then sell the generation to mining operations under a power purchase agreement. We do this without going to banks for financing, allowing us to massively simplify the transaction. We will provide fuel and lubricants alongside solar power under two separate agreements and can offer balance sheet solutions that mean we can work with the mine and take views that will not be possible under a standard finance type structure.

AC: We can improve fuel consumption on a mine by between 3 – 10% through Shell’s technologies and Vivo Energy’s product management. Meanwhile, our solar options can reduce mine’s energy consumption by around 10 – 20%.

Where do you see the highest growth potential for Vivo Energy?

AJ: The gold price is driving a significant amount of activity within West Africa, but we are also working with mines producing other commodities such as graphite, copper and diamonds. We understand our customers and are heavily focused on being the best provider of services and products wherever the demand might be. Leveraging on Vivo Energy's extensive network and customer base, Vivo Power is adding to the offering and is poised to become a full-service energy partner to the mining industry across the African continent, focussed on sustainability and lowering operational cost.

AC: We wish to consolidate our growth in West Africa for our industry-leading technical services and identifying cost saving areas for clients. We also wish to build our reputation and customer base in Southern and East Africa.

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Interview: Howden