JOHANNESBURG – Deputy President Paul Mashatile on Friday, February 27, 2026, launched the Strategic Hydrogen Localisation Investment Facility, a R100 million initiative designed to bolster South Africa’s capacity in hydrogen research, innovation, and local manufacturing. The launch, held at the University of the Witwatersrand in Braamfontein, Johannesburg, marks a significant step in the country’s ambitions to become a major player in the emerging green hydrogen economy. This #NHTKLOpening represents a concrete investment in a just energy transition, aligning with both national and global sustainability goals.
The facility is a partnership between Air Liquide South Africa, the University of the Witwatersrand (Wits University), and the Localisation Support Fund. Air Liquide South Africa is providing the R100 million in funding, which will be used to strengthen research capabilities and develop local expertise within the hydrogen value chain. The initiative aims to empower South African companies by creating opportunities for participation, innovation, and growth in this rapidly developing sector.
Deputy President Mashatile emphasized the importance of reindustrialization, stating that South Africa’s green hydrogen ambitions should “build what we use and innovate what we export.” Eurasia Review reported on his comments, highlighting the focus on domestic production and technological advancement.
Wits-SAHLI: A Hub for Hydrogen Innovation
The initiative, formally known as the Wits–South Africa Hydrogen Localisation Initiative (Wits-SAHLI), will focus on bridging the gap between laboratory research and industrial-scale implementation of hydrogen technologies. A key component of Wits-SAHLI is the establishment of a modular pilot hydrogen plant on the Wits University’s West Campus. This plant will serve as a platform for applied research, teaching, and on-campus testing of hydrogen applications, while also providing a de-risked environment for industry partners to explore and scale hydrogen solutions.
The project’s core objective is to foster localization by building competitive local industrial capacity and developing a domestic supply chain for hydrogen components and services. This will reduce South Africa’s reliance on imports and create a more resilient and sustainable hydrogen ecosystem. The initiative is designed to support the country’s transition towards a low-carbon hydrogen economy, contributing to decarbonization and sustainability efforts.
Strategic Investment in a Growing Sector
The launch of the Strategic Hydrogen Localisation Investment Facility comes at a crucial time, as global demand for green hydrogen continues to grow. Hydrogen is seen as a key component in the decarbonization of various sectors, including transportation, industry, and power generation. South Africa, with its abundant renewable energy resources, is well-positioned to become a major producer and exporter of green hydrogen.
According to a media advisory from the South African government, the facility will advance South Africa’s hydrogen research, innovation and localisation capabilities. The investment is intended to create direct opportunities for South African companies to participate in the hydrogen value chain.
Frank Dialogue on B-BBEE
In a separate engagement on the same day, Deputy President Mashatile also participated as the guest of honor at the Frank Dialogue On The Future Of B-BBEE in South Africa. A video of the event was posted on the PresidencyZA Facebook page approximately 47 minutes before this article was published, indicating ongoing government engagement with key economic policies.
Looking Ahead
The establishment of the Strategic Hydrogen Localisation Investment Facility represents a significant commitment to developing South Africa’s hydrogen economy. The initiative is expected to create jobs, stimulate economic growth, and contribute to the country’s climate goals. The next steps will involve the full operationalization of the Wits-SAHLI initiative and the commencement of research and development activities at the pilot hydrogen plant. Further updates on the progress of the facility will be provided by the Department of Science and Innovation and the University of the Witwatersrand.
The development of a robust hydrogen sector in South Africa is not merely an economic opportunity, but a crucial step towards a sustainable future. This investment in research, innovation, and localization will position the country to capitalize on the growing global demand for clean energy solutions.
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