Speaker 0:
joining me now at the bat Winter Conference Mehdi, founder and director at Mala Energy Fund. Welcome

Speaker 1:
me. Thank you very much for having me. So

Speaker 0:
me, perhaps you can take us through who malaka are and the difference between renewable energy and alternative energy.

Speaker 1:
Malala investments, Uh, is, um, an owner in Mala Energy Fund,

Speaker 1:
which is a 2.5 billion rand fund that invests in alternative energy sources. We actually invest in the full value chain of energy. We we look at green hydrogen, we look at wind, we look at solar, we look at battery solutions and we also look at gas. But then we do not only invest in projects, we also invest in

Speaker 1:
companies that play a role in the value chain as well. And we look for proper superior returns. We are CP I plus seven. Yet we only invest in not only but then we focus on contracted cash flows so that we protect the downward risk.

Speaker 0:
OK, so South Africa is a signatory to the Paris agreement to limit temperature rise

Speaker 0:
globally to below 1.5 degrees Celsius. Now, with climate change and green energy being all the focus now, for institutional investors. Um, how what are you seeing the interest from institutional pension funds in in renewable energy and alternative energy sources?

Speaker 1:
Um, it's it's claiming, but then it's still not that big. But then, obviously, we've seen the regulation. The changes in regulation,

Speaker 1:
uh, 28 which has made sure that, um uh, there is more focus on infrastructure. So because it's very important because of the just energy transition.

Speaker 1:
As you're looking at South Africa currently, we have, uh, load shedding. So as much as we are looking for greening we energy security has become a very big focus because if you are looking at, uh, in any economy without energy, you're not going to be able to, uh, move forward quickly. But then what is great about alternative energy is that, unlike the normal trade,

Speaker 1:
additional coal plants that take a long time to build you are able to build a solar plant a big 75 megawatt solar plant within a year so they actually add molecules quicker. And also it's very important in terms of when you look from a South African economy perspective. And as I was speaking to you earlier green hydrogen

Speaker 1:
also give South Africa an opportunity to export our sun and our wind. Uh, as you know, the world. We are in one ozone layer. So when we, uh when we are looking at protecting our earth, we all have to work in conundrum together. So, uh, green hydrogen, Uh, in the form of ammonia, we are able to now

Speaker 1:
able to import our sun to other countries. So it is. It is actually going to play a very significant role. As you know, green hydrogen has so much play in different industries the fertiliser, transport, green steel and all of that. So you are no longer just greening from a perspective of just a power usage. But then you are green

Speaker 1:
from a perspective of transport and all throughout the village,

Speaker 0:
absolutely so green. What defines green hydrogen from all the others. And then again, that South Africa presents a great opportunity for the storage and creation and perhaps export of this green hydrogen that we may produce locally.

Speaker 1:
Yes, you know, South Africa is a very highly industrialised country.

Speaker 1:
South Africa is actually is one of the world leaders in the production of hydrogen and also of ammonia.

Speaker 1:
The difference? The only difference is that the way it has been produced using coal and other fossil fuels for the hydrogen. But then now what? Green hydrogen is that instead of powering your electrolyzer with, uh, with, uh, coal, you are now going to power your electrolyzer using renewable energy using wind and also battery

Speaker 1:
as a storage. But then what happens with the hydrogen? Because hydrogen is not very easy to carry. We convert it into ammonia, which makes it easy for storage and for transporting,

Speaker 1:
Uh, all those skills available in South Africa. Of course, we have been doing that for years and years for decades.

Speaker 0:
OK, so me. I also want to understand what is the use case of green Hirogen? How can it transform the transport sector? The energy sector as we've spoken to and the manufacturing sector?

Speaker 1:
Uh, hydrogen plays a very big role in the creation of ammonia. Like I said, ammonia is utilised in the biggest rein in fertilisers. For us to have food security, we need fertiliser. So that is another use case. And, uh, also, ammonia is used in explosives. Uh uh. When you look at hydrogen in the manufacturing of explosives, for example, when in the mining sector

Speaker 1:
and all of those things and when you are in construction and and that stuff hydrogen plays a very important role in steel production of green steel. As you know, South Africa has 80% of the world manganese. So what? Green hydrogen? It can play a very important role in making sure that we are actually adding more value to our steel and not just shipping manganese in its raw format.

Speaker 1:
Hydrogen is also used in transportation. Uh, there is a lot of buses currently that are being used, uh, that are being changed trucks and also in shipping. The shipping industry is a very big factor as well, and also in aviation. So there is actually a whole lot of uses for

Speaker 0:
hydrogen. Absolutely. The outlook looks quite bright for hydrogen. So tell me then,

Speaker 0:
what is the outlook now as the world moves toward, uh, on a decarbonisation path and towards Net zero and the growth that renewable energy as well as alternative energy sources would possibly see, it's

Speaker 1:
very exciting. Uh, as you know, one of the our fund is an impact fund,

Speaker 1:
and, uh, our investors are looking at obviously not only just how their returns are performing, it's how you're actually impacting your environment. So we in terms of us investing in renewable energy and in alternative energy sources, we are making sure that we are protecting our environment. And also what is very important is that our economy South Africa needs jobs.

Speaker 1:
So as we are looking at all these alternative energy sources, it's, you know, other people are saying it's going to destroy jobs. No, it's actually focusing on different types of jobs and as we go there, we are hoping we are going to work hand in hand with a lot of learning institutions so that we can re skill repurpose people for the future. And as we are also doing that, the more jobs we have, the better

Speaker 1:
we are contributing to the economy. The more people there's gonna be funds to invest in the economy and then also our asset classes, they are going to be more people who are. If people are working, they're gonna be now their pension funds. Uh, so it's actually a win win solution for all.

Speaker 0:
On that very positive note, I want to Thank you so much for sharing your insights. We appreciate your time.

Speaker 1:
Thank you very much for having me again.