Ben Uugwanga
Government wants to fund its 24% stake in Green Hydrogen with funds obtained from oil and gas finds, according to Green Hydrogen Commissioner James Munyupe, who stated this at the South African Green Hydrogen Summit in Cape Town held in October 2023. Many a commentator is skeptical about this move and rather call on the feasibility study on the said project to be concluded. Others feel that the debate surrounding energy transition smacks a lack of transparency and that broad-based consultations are imperative to provide the mandate for such a decision.
The author posits that, Green Hydrogen economics should be left to the market forces and that government must desist from acquiring a stake in this experimental project. He further argues that taking oil and gas dividends to fund its shareholding is ill-advised because such an action is risky. The onus to prove the feasibility of the project should be the responsibility of the project proponents and not the government. Therefore, the champions of the project should by all means prove that the idea is environmentally, economically, financially, technically and market wise feasible. This implies that the project sponsors should present an analysis of the cost benefits to be derived in terms of employment creation, tax contributions, dividend payments, and multiplier spillovers to the economy. Policymakers are cautioned not to exercise their prerogative to invest billions in acquiring a stake in a venture that is quasi and psuedo rational, invalid, unreliable and unrealistic in terms of unconfirmed claims claiming to replace conventional energy generation methods which have been viable in the generation of electricity and propelling combustion engines.
Green Hydrogen remains an idea that is yet to prove that its energy generation capacities supersede gas and oil capacities. Government wants a stake in Hyphen but this remains risky. There is simply too much hype for this grandiose. If there is no money to implement energy transition, then taxpayers should not be dragged into being guarantors of ambitious technically unfeasible undertakings. The focus should be rather to capitalise on oil and gas returns and with their dividends fund, the country’s sustainable development goals and welfare system architecture.
Climate change is a miss-philosophy theory that is debunkable by the signs of the end-time prophetic oracles stated in the Bible. Philosophy, policy, legislation, and science can only find their optimum development and relevance if they are Christianised. Our faith informs us of a New Heaven and New Earth which will dawn during this millennium and which is an antithesis to climate change/signs of the end time ecological manifestations.
* Ben Uugwanga is the founding manager of Capstone Research Consultancy CC based in Walvis Bay.