Mashatile Launches R100m Hydrogen Hub to Spur Reindustrialisation

Mashatile stressed that localisation must be the driving force behind hydrogen development.

Deputy President Paul Mashatile has positioned South Africa’s green hydrogen ambitions as the cornerstone of a new wave of reindustrialisation, declaring that the country must “build what we use and innovate what we export”.

Mashatile was speaking at the University of the Witwatersrand’s West Campus on Friday, where he officially launched the R100 million Wits Strategic Hydrogen Localisation Investment Facility (Wits-SAHLI) — a flagship project aimed at anchoring local manufacturing in the emerging hydrogen economy.

He described the initiative as more than a research milestone, calling it a national turning point in rebuilding domestic industrial capacity and reclaiming lost manufacturing ground.

“This moment marks not only the beginning of a ground-breaking project, but also the start of a shared national endeavour: to build a new industrial capability that drives innovation, creates quality jobs, and contributes to a just, inclusive, and sustainable economy,” Mashatile said.

Hydrogen at the Centre of Industrial Revival

The Wits-SAHLI facility is a partnership between Air Liquide South Africa, Wits University and the Localisation Support Fund. It forms part of South Africa’s Hydrogen Society Roadmap, which aims to position the country as a competitive player in the global green hydrogen market.

At the heart of the project is a modular pilot plant equipped with:

• A 110 kilowatt electrolyser

• 200 kilogram hydrogen storage capacity

• A 200 kilowatt clean power output system

The plant is designed to bridge the gap between laboratory research and industrial-scale implementation — a critical step in moving from innovation to commercialisation.

Mashatile stressed that localisation must be the driving force behind hydrogen development.

“Localisation generates jobs, enhances skill sets and supports small businesses. By reducing dependency on external supply chains, it empowers local researchers and industries to innovate,” he said.

Reversing Manufacturing Decline

The Deputy President highlighted the steady contraction of South Africa’s manufacturing sector — from more than 22% of GDP in the early 1990s to approximately 12–13% today — as a warning sign.

“Behind every percentage point lost are thousands of vanished opportunities,” he said.

He argued that hydrogen presents a strategic opportunity to reverse that decline by deepening domestic value chains, building supplier ecosystems for SMMEs, and retaining intellectual property and advanced technical expertise within South Africa.

The facility is expected to stimulate local production of hydrogen components, develop specialised engineering capabilities, and support enterprise development — all key to rebuilding industrial resilience.

From Improvised Classrooms to Advanced Labs

In a personal reflection, Mashatile contrasted the new hydrogen facility with his own schooling experience in under-resourced classrooms.

“Our ‘science laboratory’ was nothing more than an ordinary classroom with a cracked chalkboard and wobbly desks… What we had was imagination,” he said.

Facilities such as Wits-SAHLI, he noted, represent both progress and responsibility — closing the gap between potential and opportunity for young South Africans.

“They close the gap between potential and possibility,” he said, describing the plant as both a technical asset and a training ground for future engineers, scientists and entrepreneurs.

Anchoring the Energy Transition

Mashatile emphasised that hydrogen development must align with South Africa’s broader energy transition strategy, including grid expansion, renewable integration and industrial reform.

He acknowledged the role of Electricity and Energy Minister Kgosientsho Ramokgopa in strengthening policy certainty around green hydrogen as part of a diversified energy mix.

Rather than functioning as a standalone innovation project, the hydrogen facility is intended to serve as a catalyst within an integrated national energy and industrial framework.

Universities Powering the Hydrogen Economy

Higher Education and Training Minister Buti Manamela also attended the launch, reinforcing the role of academia in scaling the hydrogen economy from pilot stage to full commercial viability.

“Universities and research facilities are the backbone of this initiative. The hydrogen economy will require new thinkers, new problem solvers, new technicians, new researchers and new entrepreneurs,” Mashatile said.

By 2028, when the facility is expected to be fully operational, the partnership aims to have built a vibrant hydrogen manufacturing ecosystem, strengthened enterprise development pathways and enhanced South Africa’s competitiveness in global green markets.

In closing, Mashatile described the launch as laying the foundation for a new chapter in South Africa’s industrial and energy future — one where clean energy innovation becomes a driver of inclusive growth and economic renewal.