JOHANNESBURG (miningweekly.com) – An extensive pilot initiative aimed at scaling up hydrogen technology, infrastructure and applications across the length and breadth of China has been announced, shortly before next month’s promising Shanghai Platinum Week from July 7 to 10, where there will be a strong South Africa platinum group metals (PGMs) presence.

As the world’s largest consumer of PGMs, China is a major driver of the demand for platinum, which has risen to the highest level in more than a decade, with gains taking place at a time of market deficit.

Green hydrogen and PGMs go hand-in-glove in that PGMs are used in the electrolysers that generate green hydrogen, as well as in the fuel cells that convert that green hydrogen back into green electricity for mobile and stationary applications.

Platinum for immediate delivery has been trading at a premium to futures, which is arising ahead of a big get-together that never fails to provide a distinctive platform to gain insights into China's market dynamics and to emphasise South Africa’s position as the world’s largest producer of PGMs.

The latest China hydrogen scale-up initiative is targeting a comprehensive commercial deployment by June 2028. The initiative focuses on 11 specific areas within the hydrogen value chain, testing innovative models and technologies, the World Platinum Investment Council (WPIC) has reiterated on LinkedIn.

The membership of the WPIC, which provides insights to advance platinum investment, includes all of South Africa’s major PGM mining companies.

After signs of strong demand in China, Bloomberg reports that platinum is heading for a record quarterly surge, as well as robust investor interest, exacerbated by deficit concerns.

The publication Fuel Cell Works has pointed out that each project under this new hydrogen scale-up directive is mandated to demonstrate technological progression, commercial potential, and substantial carbon reduction benefits. Green hydrogen production must involve electrolyser facilities with capacities of at least 100 MW and be 80% powered by renewable-energy sources. Remote locations such as deserts and isolated plateaus will reportedly host 100-MW-plus off-grid hydrogen systems.

Each China province and central State-owned enterprise can nominate up to five individual projects and two regional pilot schemes. Priority will be given to projects already holding necessary permits, aligned with national research and development strategies, or incorporating pioneering technologies supported by robust commercial and technical bases.

As the countdown begins towards the Shanghai Platinum Week, hopes are also high that China will introduce the first cornerstone of what will likely be global trading augmentation and add to price discovery, which is key for the overall market.

Ahead of Shanghai Platinum Week No 5, Mining Weekly has been informed that the Guangzhou Futures Exchange (GFEX) is close to regulatory sign-off of the promising new trading framework.

GFEX is where physically settled platinum and palladium futures have the potential to transform domestic price risk management and uplift demand for platinum products.

Acceptable will be platinum and palladium in the form of ingots and sponge – pure metal in powder form – as opposed to just ingots.

The ability to take delivery of sponge could be transformative for industrial users of PGMs, as well as automakers, as this is the main form typically used for their manufacturing purposes. No other exchange in the world allows delivery of sponge.

Other benefits of the GFEX’s new futures are likely to include a mechanism for businesses involved in the market to hedge price risk and better manage their operations. For example, the removal of price risk will allow platinum jewellery and investment product fabricators to reduce the premium charged for platinum products as well as the discount on buyback.

To date, the platinum weeks have repeatedly demonstrated their ability to leverage China’s position as the number one PGMs market through the country’s admired platform for serious learning, unequalled engagement and provision of exceptional networking opportunities.

CHINA ABOLISHES TARIFFS FOR AFRICAN COUNTRIES

Interestingly, China, according to Empowering African Entrepreneurs for Impact CEO Ajay Wasserman, has abolished all tariffs on exports from 53 African countries, including South Africa, which opens the way for African goods to flow into Chinese markets, ranging from minerals to agriculture, textiles and manufactured products.

Wasserman expects this to deepen China’s trade with Africa and to incentivise trade relationships. "For African nations, this could redefine export dynamics and boost GDP,” he adds.

Hydrogen Fuel News has just released an announcement that the UK and Ireland are planning a hydrogen interconnector to ensure decarbonised energy security. This aligns with Ireland’s plan to use its wind energy to produce green hydrogen at scale. For the UK, it is another advance towards positioning itself as a leader in the hydrogen economy.

Meanwhile, in Germany, yet another hydrogen tender has been invited for hydrogen storage, this time for a facility in North Rhine-Westphalia. The tender is timed to service companies that want to secure available storage capacity from 1 January 2028.

It follows Germany’s Heraeus Precious Metals, which has strong South African links, declaring hydrogen the best sway to store green energy. Hydrogen being storable for prolonged periods is being increasingly recognised as the superior energy storage option amid PGMs also being increasingly elevated to the rank of decarbonising champions.

The peaks and valleys of renewable-energy supply are best balanced out by stored hydrogen or hydrogen compounds, Heraeus Precious Metals executive VP business line systems Dr Philipp Walter spelt out during a recent Zoom interview with Engineering News & Mining Weekly.

In Poland, it has been announced that Polish utility Tauron Polska Energia has obtained $36-million in funding for the construction of a 20 MW green hydrogen production facility in the southern Silesian province.

The subsidy was awarded as part of a hydrogen investment programme administered by Poland's Bank Gospodarstwa Krajowego, which last week approved funding for the co-financing of six hydrogen production projects.

On the hydrogen mobility front, Toyota Motor Europe and VDL Groep have collaborated to integrate Toyota’s fuel cell system into heavy-duty trucks. Following the first demonstration truck, Toyota has now deployed four more vehicles on its logistics routes across Belgium (Diest), France (Lille), Germany (Cologne), and the Netherlands (Rotterdam and Weesp).

This initiative is in line with Toyota's aim of contributing to growing the hydrogen economy, Toyota Motor Europe VP Thiebault Paquet has been quoted as saying.

In India, the government has set a near-term milestone of creating five-million tonnes of green hydrogen production capacity by 2030.

Among the keynote speakers at Shanghai Platinum Week will be WPIC director of research Edward Sterck and joining him on the first day of the event will be Valterra Platinum CEO Craig Miller, SFA (Oxford) CEO Henk de Hoop, Changjiang Securities chief economist Dr Wu Ge, China Material Recycle Association Precious Metal Industrial Committee's Bian Jiang, and China Fiberglass Industry Association’s Wen Hui.