Sasol South Africa and ArcelorMittal South Africa on Oct. 18 announced a Joint Development Agreement (JDA) to advance studies of two potential green projects.
The Saldanha green hydrogen derivative study will explore the region’s potential as an export hub for green hydrogen and derivatives, as well as steel production. The Vaal carbon capture and utilization (CCU) study will investigate the use of renewable electricity and green hydrogen to convert capture carbon from ArcelorMittal South Africa’s Vanderbijlpark’s steel plant into sustainable fuels and chemicals.
In addition, Sasol signed a Memorandum of Understanding (MOU) with Freeport Saldanha Industrial Development Zone to develop a globally competitive green hydrogen hub and ecosystem within Saldanha Bay.
“We are very excited to be leading the pre-feasibility and feasibility studies on these two potential projects that hold promise to unlock South Africa’s potential to be a global green hydrogen and derivatives player,” said Priscillah Mabelane, Executive Vice President for Sasol’s Energy Business. “These studies are anchored by the local need for green hydrogen and sustainable products, cementing Sasol as the leading contributor to the development of southern Africa’s green hydrogen economy.”
Last month, Sasol and ITOCHU Corp. signed an MOU to jointly study and develop the market and supply chain for green ammonia, with a focus on its use as bunkering fuel and for power generation. The parties will also evaluate ITOCHU’s potential involvement and participation in Sasol’s green ammonia export-orientated projects, including product offtake as well as financial support from Japan for studies and grants relating to green ammonia projects in South Africa.
Sasol is advancing a number of green hydrogen studies and projects in South Africa, including one in Boegoebaai, in the Northern Cape province, that include green ammonia production at scale for export (GM Oct. 29, 2021).