1. Introduction

South Africa is embarking on an ambitious transition toward a low-carbon, climate-resilient future. At the heart of this shift is green hydrogen, a strategic energy source that promises to decarbonise heavy industries and stimulate sustainable economic growth. National frameworks like the Hydrogen Society Roadmap (HSRM) signal a clear commitment to this path. Credible estimates put planned green hydrogen projects at over USD 20 billion. By 2030, the sector could create at least 20,000 new jobs annually.

However, national goals cannot be achieved without local action. Municipalities are the primary enablers of the hydrogen economy; they manage the infrastructure, land-use planning, and safety regulations necessary for new energy projects. This article summarises a research study commissioned by the Local Government Sector Education and Training Authority (LGSETA) in 2026. The study assessed the capacity and readiness of local government to support the emerging hydrogen economy.

2. What the literature tells us

More than 40 countries now have national hydrogen roadmaps. Countries leading the way share a common pattern: strong policy, cluster-based development near ports and special economic zones, public-private partnerships, and early skills investment. Germany and Australia have focused on retraining existing engineers rather than creating entirely new occupations. Cities such as Aberdeen and Cologne have piloted hydrogen-powered public transport, with municipalities acting as safety regulators and infrastructure coordinators. Furthermore, current literature on socio-technical transitions cautions us that success depends on more than just the technology itself. It requires a “ready” ecosystem of institutions, skills, and local regulations.

Within South Africa, the literature reveals a persistent gap. National policy frameworks are sophisticated, including the Green Hydrogen Commercialisation Strategy (GHCS) and the Just Energy Transition Investment Plan (JETP). But there is little evidence on whether municipalities are actually ready to play their part. This study was designed to fill that gap.

Five theories shaped the analysis: Skills Gap and Mismatch Theory; Socio-Technical Systems Theory (technologies succeed only when institutions adapt too); Human Capital Theory (investment in training drives productivity); Diffusion of Innovations Theory (adoption happens incrementally through pilots); and Energy Transition Theory (low-carbon shifts require systemic governance change, not just new equipment).

3. Methodology

The study used a mixed-methods design, which combines qualitative and quantitative evidence to provide a fuller picture. The qualitative component included semi-structured interviews with municipal officials, engineers, policymakers, and private sector stakeholders. A focus group discussion was held with seven experts from universities and research institutions. The quantitative component used a structured survey administered electronically across multiple stakeholder groups, covering hydrogen awareness, municipal readiness, infrastructure capacity, skills gaps, and implementation challenges. In total, 50 stakeholders participated: 32 public sector officials (exceeding the target of 15), 9 private sector respondents, 4 Technical and Vocational Education and Training (TVET) college and 4 university representatives, and 7 hydrogen experts (in 1 focus group discussion). The strong public sector response, more than double the planned number, reflected genuine municipal interest in understanding the transition. 

4. Findings

4.1 Municipalities are not ready, but they are paying attention

The most important finding is this: municipalities are institutionally unprepared for the hydrogen economy, yet increasingly aware that it is coming. The primary constraints are not technological. They are institutional, including infrastructure gaps, regulatory fragmentation, fiscal constraints, and skills shortages, which collectively prevent municipalities from fulfilling their enabling role.

4.2 Infrastructure gaps are significant

Municipal electricity grids were designed for household distribution, not for energy-intensive hydrogen electrolysers. Most would require major upgrades before supporting hydrogen production. In water-scarce areas, hydrogen's water requirements compete directly with domestic supply. Because hydrogen production is water-intensive, many municipalities worry about competing with the domestic water needs of their residents. Zoning frameworks have no category for hydrogen production, storage, or refuelling infrastructure, leaving approvals discretionary and timelines unpredictable. In the majority of municipalities, hydrogen is largely missing from municipal water and energy planning.

4.3 Skills shortages are the biggest barrier

Across all stakeholder groups, skills deficits emerged as the most significant constraint. Municipal staff is generally well-educated, 41% hold bachelor's degrees or advanced diplomas, but the qualifications of municipal staff are general, not hydrogen-specific. Of all the municipal respondents, none had formal training in fuel cell systems, electrolysis, or hydrogen safety. It was also found that municipalities lack officials who can evaluate the safety of hydrogen refuelling stations or town planners who understand the specific risk assessments required for these facilities. Furthermore, emergency services and fire departments currently lack the specialised training needed to manage high-pressure hydrogen incidents.

TVET colleges and universities have relevant foundational expertise in engineering and chemistry, but no structured hydrogen curricula aligned to municipal needs. Some qualifications now exist, such as the Hydrogen Fuel Cell System Practitioner programme offered by the Energy & Water Sector Education Training Authority (EWSETA). The Quality Council for Trades and Occupations (QCTO) recently approved three green hydrogen skills programmes. However, these are not yet coordinated with LGSETA planning instruments.

4.4 Regulation is fragmented

South Africa has no single hydrogen legislation. The sector is governed by a patchwork of energy, environmental, safety, and planning laws designed for conventional systems. Municipalities generally do not have specific by-laws or zoning categories for hydrogen production and storage. Municipal respondents reported uncertainty about permitting, safety setbacks, inspection authority, and emergency response responsibilities. Without clear spatial planning frameworks, developers face unpredictable approval timelines and "red tape." As one official noted, the lack of a specific zoning category for a hydrogen plant creates a vacuum that stalls investment.

4.5 The private sector is watching and waiting

Private sector participation remains exploratory rather than operational. Investors are waiting for regulatory clarity, permitting predictability, and evidence of municipal technical capacity before committing resources. This is an important message for municipalities: their preparedness will directly determine whether the hydrogen market emerges locally. However, a strategic risk was also identified; developing highly specialised hydrogen skills prematurely may result in underemployment if large-scale projects are delayed.

5. Recommendations

5.1 Develop a national hydrogen skills framework

LGSETA, in collaboration with the Department of Higher Education and Training (DHET), EWSETA, Chemical Industries Education & Training Sector Authority (CHIETA), and other key stakeholders, should develop a national hydrogen skills framework, which maps hydrogen competencies to specific municipal roles. This framework must be integrated into Sector Skills Plans (SSPs) and Workplace Skills Plans (WSPs) so that municipalities can access levy or discretionary grant funding for hydrogen training.

5.2 Build governance capability first

Municipal hydrogen readiness does not require deep production expertise. What is urgently needed are governance skills: how to permit a hydrogen facility, how to zone land for hydrogen storage, how to inspect installations, and how to coordinate across government spheres. LGSETA should develop short, accredited courses for planners, safety officers, and emergency responders.

5.3 Use a tiered approach

Not all municipalities are equal. Large metros and those near ports or Special Economic Zones (Tier 1) need advanced governance and systems integration training. Municipalities with emerging industrial activity (Tier 2) need regulatory literacy. Smaller and rural municipalities (Tier 3) need basic hydrogen awareness and disaster management integration.

5.4 Fix the regulatory environment

The South African Local Government Association (SALGA) should support the development of model hydrogen by-laws and permitting templates. The national government should harmonise relevant legislation, including the Gas Act, the National Water Act, and spatial planning laws, to enhance legal coherence and predictability, and therefore foster investor confidence. An intergovernmental hydrogen working group would help align national strategy with municipal implementation.

5.5 Start with pilots and partnerships

Instead of waiting for massive industrial shifts, municipalities should facilitate small-scale pilot projects, such as using hydrogen fuel cells for backup power in municipal buildings or public transport. Three to five municipalities within the Hydrogen Valley corridor or near Special Economic Zones (SEZs) should be selected as demonstration sites. LGSETA should facilitate partnerships between municipalities, TVET colleges, universities, and private developers to support work-integrated learning and knowledge transfer. The just transition dimension must be central: hydrogen development should actively reskill displaced workers, support small businesses, and direct training investment toward communities hosting hydrogen infrastructure.

6. Conclusion

The green hydrogen transition will be won or lost at the local level. The conclusion is clear: hydrogen readiness in South African municipalities is not primarily a technology problem, but an institutional and human capital challenge. This challenge is solvable with the right investments, the right sequencing, and the right partnerships. By prioritising specialised training and regulatory support, LGSETA has an important role to play in turning national ambition into local reality.

By LGSETA

This article is part of a series reporting on research commissioned by the Local Government Sector Education & Training Authority (LGSETA) (Contact: matodzir@lgseta.org.za).