The Development Bank of South Africa and the Industrial Development Corporation have committed project development funding to create a South African stationary fuel cell technology business.

The funding is to complete a feasibility study into the bankability of a stationary fuel cell energy solution. The project would aim to strengthen the local energy sector by creating locally-produced fuel cell technology.

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The primary objective of the project, called Mitochondria Energy Company, would be the design of a 250kW fuel cell system, construction of a facility to commercially manufacture the fuel cell units and then the sale of said units.

Secondary objectives of the project include stimulating the demand for fuel cell energy systems to encourage its use as a clean energy source for industrial use and promoting the use of combined heat and power from fuel cells.

A fuel cell is an electro-chemical cell that converts the chemical energy of a fuel (such as hydrogen) and an oxidising agent (e.g. oxygen) into electricity through a pair of oxidation-reduction reactions.

Fuel cells work like batteries, but they do not run down or need recharging. The cells continue producing electricity and heat as long as their fuel stays available.

Localising fuel cell technology to change the country’s energy mix

IDC’s head of energy, Chris Fourie, says they are excited to co-develop this project as it would localise the manufacturing of fuel cells to ensure that the technology and intellectual property is South African-based: “The IDC funding will go towards the completion of the bankable feasibility study phase of Project Phoenix.”

Fourie said Project Phoenix would support the IDC’s developmental objectives by creating jobs; increasing the demand of locally produced minerals chromium, iron and zirconium; potentially replace imported power generation equipment such as gas engines; localise the manufacture of some fuel cell components; and support a black industrialist venture.

“This project will eventually contribute to the reduction of greenhouse gases and is aligned to the IDC clean energy strategy,” explained Fourie.

DBSA group executive for the project preparation division, Mohale Rakgate, said the investment consists of a structure project preparation facility that will allow Mitochondria Energy Company to enhance the country’s energy supply security.

“The fuel cell project has many technical and localisation advantages ideally suited to deal with the energy challenges facing South Africa. This investment emphasises the bank’s strategy towards diversification of the energy mix locally and in Africa,” said Rakgate.

Mitochondria’s CEO Mashudu Ramano said they aim to realise South African economic and manufacturing dividend by achieving global competitiveness in fuel technology, not excluding the potential for significant foreign earnings: “We are thrilled to have IDC and DBSA join us in developing a solution that can harness local demand to drive new industry formation at this critical time in our country and lay the foundation for the country to be a serious player in the emerging hydrogen economy.”