EU scramble for hydrogen to have devastating impacts in South Africa, say affected communities

The EU has identified South Africa as a potential supplier for its huge projected green hydrogen import needs, which it is pursuing through the Global Gateway and bilateral partnerships. According to internal European Commission documents, preparations are underway for a deal on critical raw materials and green hydrogen between South Africa and the EU. Both sides are presenting it as a win-win scenario.

But testimonies from frontline communities affected by planned green hydrogen projects in South Africa reveal a different story. One of land grabs, resource exploitation and no free prior and informed consent, with local people left bearing the brunt of negative impacts as polluting industries continue with business as usual.

“The old fossil fuel companies are pushing green hydrogen. I don’t see them abandoning their way of making money,” said Given Zulu, Khuthala Environmental Care Group, from the coal-mining town of Ermelo, Mpumalanga province, which is now facing new green hydrogen developments. “I think it’s just a way of making the world shut up a bit … to say they are no longer polluting.”

Europe’s ambitions to import green hydrogen raises alarm bells about their potential consequences for communities and the environment in South Africa and across the world. Key impacts from the report, The Scramble for Hydrogen in South Africa, include:

• Land grabbing: Large-scale hydrogen projects, such as the Sasol-led Boegoebaai cluster, threaten to displace communities and exacerbate land conflicts. Indigenous groups, like the Nama, risk losing large swathes of land, including sacred burial grounds, as green hydrogen projects put investor interests over local rights.
• Water scarcity and coastal damage: Green hydrogen production requires immense amounts of water, with South Africa projected to need the equivalent of 13,680 Olympic-sized swimming pools per year by 2050. This will exacerbate water scarcity, especially in already affected areas such as the Vaal. Mega-ports and tanker traffic, which threaten to degrade fishing grounds and marine ecosystems, also threaten coastal community livelihoods.
• Challenges to energy access: Diverting renewable energy for hydrogen production could exacerbate energy poverty. Achieving South Africa’s hydrogen targets would require up to 80GW of renewable energy capacity by 2050 - eight times the current capacity, and all for hydrogen - while many aren’t able to access affordable and reliable electricity.
• EU influence and exploitation of resources: European countries, driven by corporate lobbying, are shaping South Africa's hydrogen strategy. Projects such as Boegoebaai and Saldanha Bay reinforce a pattern of exporting raw materials while importing expensive technology, adding to South Africa's debt burden. In addition, the EU's interest in platinum group metals (PGMs), which are critical for hydrogen production, further endangers mining-affected communities.
• Corporate influence overshadows civil society: Major polluters such as Sasol and ArcelorMittal are leading the green hydrogen strategy, sidelining the voices of civil society. Despite their poor environmental records, these companies stand to receive significant public funding, raising concerns about greenwashing and delays in the transition away from fossil fuels.

Belén Balanyá, Corporate Europe Observatory researcher and campaigner, says:

"The so-called 'green hydrogen hype' is far dirtier than the polished narrative sold in Europe. The promise of win-win outcomes doesn't hold water when the reality on the ground shows no real path to development or decarbonisation for South Africa. Big polluters continue to profit while local communities and the planet pay the price.

Europe cannot decarbonise by outsourcing the damage to the Global South. A truly just transition must be global, and the scramble for hydrogen must be stopped before it causes more harm."

Yegeshni Moodley, Climate and Energy Campaigner, groundWork

“Green hydrogen reminds me of the great and powerful Oz, a smokescreen for a weak and deceitful pretender, preying on the fears and insecurities of those around him. The hydrogen lobby promises countries and communities wealth and prosperity, a seat at the energy table, and fair shares all around. 

In reality, what we see are projects shrouded in confidentiality, located in areas that already bear the social and environmental burden of extractivism, communities locked out of discussions, and the looming burden of greater sovereign debt.”

Neville van Rooy, Community Outreach Programme Head, The Green Connection

“In South Africa's Northern Cape, "green hydrogen" projects threaten water, land, and oceans, but despite communities raising concerns, they’re ignored. When will marginalised communities get to decide for themselves what development they want? 

For the indigenous Nama people, this is a second wave of land dispossession. The legacy of Apartheid lingers, as capitalism bulldozes communities deeper into poverty. But we will continue to support communities and fight to defend their land and ocean against oil, gas, and false solutions like the Boegoebaai green hydrogen project, as well as the neoliberal, neocolonial agenda behind it.” 

ENDS

For media inquiries, please contact

Belén Balanyá, Corporate Europe Observatory researcher and campaigner

belen@corporateeurope.org; +31 633 090 386

Marcella Via, Corporate Europe Observatory press officer

media@corporateeurope.org; +39 348 420 14 35

Interviews with campaigners and communities on the ground can be arranged on demand.

Notes to editor

• Read the full report here.
• The testimonies in the report (see below) are from interviews conducted by Corporate Europe Observatory during a field trip to South Africa in May 2024, visiting proposed green hydrogen sites and speaking to communities and campaigners living in and around the projects. Testimonies come from the Richtersveld, Northern Cape province; the Vaal Triangle, Gauteng province; Ermelo, Mpumalanga province; Mogalakwena, Limpopo province.
• European companies involved in green hydrogen projects in South Africa include steelmaker ArcelorMittal (LU), mining giant Anglo-American (UK), the Port of Rotterdam (NL), Engie (FR), EDF (FR), Linde (DE), Enertrag (DE), BMW (DE), Hive Energy (UK), Phelan (IE), Mainstream Renewable Power (IE), and HDF Energy France (FR).
• The European Commission has earmarked €150 billion for its Global Gateway Africa-Europe Investment Package, which is being implemented through Team Europe initiatives. A key focus of this will be green hydrogen. For more information see here.
• The EU does not yet have a dedicated hydrogen agreement with South Africa, but according to internal European Commission documents, preparations are ongoing for a deal on critical raw materials and green hydrogen. “The EU is interested in setting up a cooperation with South Africa on critical raw materials due to the very interesting mining profile of the country, notably as regards PGMs [Platinum Group Metals], key for the renewable hydrogen value chain,” states an internal briefing from the Commission’s energy department from November 2023. PGMs are a key component in electrolysers, used to make hydrogen from water using electricity, and it is estimated that 89% of the world’s reserves lay beneath South African soil.

Testimonies from impacted communities

Walter Steenkamp, local fisherman and community leader in Port Nolloth (impacted by the Boegoebaai project): “Our government is selling us out... saying that there are no people living on this ground... But I’ve been living here for 50 years, and there are a lot of communities on this land.”

Mpho Selemela, Vaal Environmental Justice Alliance (impacted by Sasol's and AMSA's projects in the Vaal Triangle): “No one from their side or from the government has ever told us about green hydrogen. Most of the communities don’t know. The transition that is coming is not for us. It’s for businesspeople, maybe for their exports and their trade. But for us – we’re damaged."

Surprise Mashishi, Mining Affected Communities United in Action, (impacted by Anglo American's Hydrogen Corridor Valley project): “They have been building the solar panels and the people have been removed from their areas to other villages.

Elizabeth Slander, a Nama community leader from the town of Sandrift in Richtersveld, (impacted by the Boegoebaai project):
“We as South Africans aren’t using green hydrogen, so why should it be produced on our land? Why can’t it be developed in Europe or in other countries that need it?”

For more testimonies, please see here