South Africa E-Fuel Market Overview, 2029

South Africa's e-fuel business is increasing as the country seeks to shift to more sustainable energy options in the face of rising environmental concerns and a promise to cut greenhouse gas emissions. Historically, coal has been the country's primary energy source, accounting for more than 70% of electricity output. However, the negative environmental consequences and global tendencies towards decarbonisation have compelled a rethinking of its energy strategies. In 2011, the Integrated Resource Plan (IRP) was introduced, establishing a strategy for boosting renewable energy's contribution of the national grid. The 2019 version of the IRP intended to produce a cleaner energy mix by emphasising the necessity of including renewable sources such as wind, solar, and hydro. The Hydrogen South Africa (HySA) effort, which began in 2008, is focused on developing hydrogen and fuel cell technologies, both of which are crucial for e-fuel production. This program has sparked cooperation among academia, industry, and the government to advance research and innovation in the subject. One of the most significant innovations is the Fischer-Tropsch synthesis, which turns hydrogen and carbon dioxide into synthetic fuels. In 2020, the South African government, in collaboration with business partners, launched programs to investigate the viability of large-scale Fischer-Tropsch facilities that would create e-diesel and e-kerosene using renewable hydrogen. Furthermore, the Reverse Water Gas Shift (RWGS) process is being researched for its ability to produce syngas, which is a precursor for several e-fuels. According to the research report "South Africa E-Fuel Market Overview, 2029," published by Bonafide Research, the South Africa E-Fuel market is anticipated to grow at more than 25.47% CAGR from 2024 to 2029. The National Development Plan (NDP) and the Climate Change Bill, which are now in draft form, seek to provide a policy framework that promotes the growth of renewable energy and e-fuels. Compliance with international agreements, such as the Paris Agreement, is also fuelling local efforts to reduce emissions and transition to a low-carbon economy. Sasol, a global integrated energy and chemical corporation, has pioneered synthetic fuels by exploiting its Fischer-Tropsch technological knowledge. Eskom, the state-owned electrical provider, is also an important player in the e-fuel scene because it controls a large portion of the country's power generation. South Africa has the potential to become a major player in the global e-fuel business, because of its plentiful renewable resources. To spur innovation, the government has encouraged collaboration among industrial stakeholders, academic institutions, and foreign entities. For example, Sasol's collaboration with the German Energy Agency (dena) intends to investigate hydrogen production and e-fuel technology. To promote the e-fuel sector, the South African government and industry participants are actively conducting awareness campaigns that highlight the benefits of e-fuels. Initiatives to educate the general public and companies about the benefits of moving to sustainable fuels are critical for winning support and accelerating adoption. The regulatory framework is changing, and the lessons from the COVID-19 pandemic highlight the necessity of resilience and sustainability. As collaborations and awareness grow, South Africa has the potential to become a major participant.

In South Africa, the e-fuel market is quickly evolving across a variety of uses, most notably transportation, industrial, and power generating. Transportation is one of the most common applications of e-fuels in South Africa, particularly for heavy-duty vehicles and aeroplanes. E-diesel and e-kerosene, created using processes such as Fischer-Tropsch synthesis and renewable hydrogen, are gaining popularity as greener alternatives to traditional fossil fuels. Companies such as Sasol play an important role in this industry, leveraging their competence in synthetic fuel manufacturing to provide e-fuels that may effortlessly integrate into current transportation infrastructures without requiring significant modifications to engines or fuelling systems. Transportation is driving the e-fuel business in South Africa due to its instant applicability, compatibility with existing infrastructure, and considerable expenditures in production technology. The industrial sector is another major user of e-fuels, which are used in activities that require high-temperature heat or as feedstock for chemical manufacturing. Industries such as steel and cement production are looking into e-fuels as a method to reduce carbon emissions. In power generation, e-fuels can be combined with natural gas in gas turbines, paving the door for a more sustainable energy mix. However, e-fuel uptake in this sector is still in its early stages when compared to transportation and industrial applications. Domestic suppliers such as Sasol and Eskom, as well as new businesses like Hidrogenio are instrumental in driving the growth of the e-fuel market in South Africa. In South Africa, the e-fuel market includes a variety of synthetic fuels such as e-kerosene, e-diesel, e-gasoline, and e-methanol, all manufactured using renewable energy sources. E-diesel is extremely popular in South Africa's e-fuel sector. It is created by the Fischer-Tropsch synthesis method, which transforms renewable hydrogen and carbon dioxide into synthetic liquid fuels. Major domestic providers like as Sasol are at the forefront of e-diesel production, drawing on their significant knowledge with synthetic fuel technologies. E-kerosene, another key type of e-fuel, is largely intended for the aviation industry. It is created using renewable hydrogen and carbon capture technology, just like e-diesel. With South Africa's thriving aviation industry and an increasing emphasis on environmentally friendly aviation fuels, e-kerosene presents a feasible option for airlines. E-gasoline is entering the market, albeit it is less common than e-diesel and e-kerosene. E-gasoline may be utilised in regular petrol engines and is a lower-carbon alternative. Its manufacturing procedures are similar, making it a potential competitor in the transportation sector if customer preferences shift towards greener alternatives. E-methanol is also becoming popular as a versatile fuel and feedstock in the chemical industry. It can be used to power fuel cells and internal combustion engines, as well as to make a variety of chemical compounds. E-methanol is typically produced using CO2 and hydrogen from renewable sources. Several advanced technologies are critical in the South African e-fuel market for producing sustainable fuels, the most important of which are hydrogen technology, Fischer-Tropsch synthesis, and the Reverse Water Gas Shift (RWGS) method. Hydrogen technology is essential for e-fuel production since it serves as a clean energy carrier that can be produced utilising renewable electricity through processes such as electrolysis. This hydrogen can be used directly in fuel cells or mixed with CO2 to create a variety of e-fuels. The country is making progress in hydrogen production, particularly through efforts such as the South African Hydrogen Roadmap, which intends to make hydrogen a fundamental component of the national energy plan. The Fischer-Tropsch (FT) synthesis process is another important method for turning hydrogen and carbon monoxide into liquid hydrocarbons. This technology enables the generation of e-diesel and e-kerosene, making it very useful for transportation fuels. Sasol, a leader in synthetic fuel production, has used Fischer-Tropsch technology for decades and is now adapting it for e-fuel uses. The Reverse Water Gas Shift (RWGS) process is important in turning carbon dioxide and hydrogen into carbon monoxide and water. This reaction is critical for incorporating CO2 utilisation into e-fuel generation since it generates the syngas needed for Fischer-Tropsch synthesis. The RWGS technique improves carbon recycling, which helps South Africa's climate goals by lowering greenhouse gas emissions.

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Manmayi Raval

Research Consultant

Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • E-fuels market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By End-use • Aviation • Marine • Industrial • Railway • Automotive • Others

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By Application • Transportation • Industrial • Power Generation • Others By Type of E-fuel • E-kerosene (Synthetic Aviation Fuel) • E-diesel • E-gasoline • E-methanol • Other Hydrocarbons By Technology • Hydrogen technology (Electrolysis) • Fischer-Tropsch • Reverse-Water-Gas-Shift (RWGS) The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the E-fuels industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry. ?