PtX Allocation Study for South Africa - Power-to-X to enable and advance the long-term transformation of South Africa’s Energy System

Context and Significance: The global economy and energy transition is driven by the imperative to combat climate change and achieve climate neutrality by 2050. Among the array of solutions, electricity-based sustainable molecules and fuels, commonly referred to as Power-to-X (PtX) products, have emerged as critical components in governments’ strategies. These products, which include green hydrogen and synthetic fuels, will play an essential role in the defossilisation of industries, long-haul aviation and shipping and will function as backup energy in power systems with high renewable energy penetration. The International PtX Hub, through initiatives like PtX Pathways, aims to foster the development of sustainable hydrogen and PtX markets in countries with significant renewable energy potential, such as South Africa, Morocco, and Argentina. This allocation study focuses on South Africa, exploring the potentials, challenges, and least-cost or no-regret decisions surrounding the development and utilisation of PtX products.