Competitively located next to sub-Saharan Africa’s largest international airport, the OR Tambo SEZ is playing a key role in advancing South Africa’s green economy growth – by facilitating the production and export of components that support the generation of green energy.   

In addition to its linkages to OR Tambo International, the SEZ is well-positioned near a major platinum refinery, making it ideal for accessing and processing Platinum Group Metals (PGMs), which are essential for producing fuel cells—one of the most important components in the green hydrogen industry. This focus on PGMs aligns with South Africa’s position as a global leader in PGM production and the Hydrogen Society Roadmap of South Africa.  

In support of its goal to stimulate fuel cell and hydrogen localization, the SEZ is excited about the onboarding and imminent operationalization of one of its investors who is focused on the production and export of key fuel cell components. 

About Isondo Precious Metals

Established in 2012, Isondo Precious Metals (IPM) has set up a state-of-the-art facility in the SEZ that will produce key components like PGM catalysts and Membrane Electrode Assemblies (MEA) used in electrolysers and fuel cells.

The Isondo facility is set to be fully operational by late 2024, providing a basis for the OR Tambo SEZ to contribute to South Africa’s objectives to manufacture and export key components with an input into the green hydrogen landscape.

Without a doubt, the realization of Isondo’s imminent plant operationalisation is a major step in positioning South Africa as a leader in the global green hydrogen value chain. It also has significant economic benefits, including creating up to 300 skilled jobs.

Why OR Tambo SEZ is supporting the Fuel Cell and Green Hydrogen Market

The green hydrogen and fuel cell industry, driven by the growing demand for cleaner energy solutions, is still in its early stages of development. One key challenge the sector faces is the high price of hydrogen, which, while currently elevated, is expected to decline as demand increases over time.

Additionally, complexities surrounding the transportation of hydrogen, particularly for export, pose significant logistical hurdles. This is where Special Economic Zones (SEZs) such as the OR Tambo SEZ come in: by playing a critical role that assists in reducing production costs—through infrastructure, operational incentives, and localized ecosystems that lower all work together to reduce operational expenses. The SEZ also provides a regulatory framework through which huge investments required for this new industries can be effectively planned and located – with the support of government incentives that provide a basis for VAT and tax rebates; this is crucial in this still cost intensive industry. 

The IPM  facility located at the SEZ’s first operational precinct exemplifies this and how the SEZ is working on unlocking this new industry: in a way that fosters local manufacturing of components that form part of the fuel-cells value chain. 

In addition to the first precinct where IPM is located, the SEZ is also in the advanced stages of planning a full scale PGM-focused SEZ where PGM related products, including mining and capital equipment as well as integrated energy solutions that utilize both gas and fuel cell systems will be located. 

With the strong foundation realized with its operational precinct, the OR Tambo SEZ is ready and geared up to promote this new age industry, contributing not just to job creation but the imbedding of new skills and opportunities in South Africa. 

For more information on the at OR Tambo SEZ, visit: www.ortambosez.co.za