Case Study #1: CBAM and Hydrogen Carrier Choice for Exports from South Africa to the EU

Implications of the EU Carbon Border Adjustment Mechanism (CBAM) for Hydrogen and Power-to-X Development in South Africa

This case study examines the implications of CBAM for South Africa’s future green hydrogen and Power-to-X (PtX) industries. It provides an overview of different hydrogen carriers and products, including an analysis of technological readiness, transport considerations, infrastructure needs, and EU market dynamics. Then, the likely impact of the CBAM on the choice of green hydrogen carriers from South Africa to the EU is analysed, by considering the scope of CBAM coverage, the rules for defining green hydrogen and PtX in the European market and considering the potential impact of the CBAM on the cost of different carriers entering the EU market from South Africa. Finally, the case study presents a set of conclusions.