South African energy and chemicals company Sasol and steelmaker Arcelormittal are jointly studying the potential to develop a green hydrogen export hub and green steel production base at Saldanha, north of Cape Town.

The two companies, which are among South Africa’s biggest industrial operators and emitters, have also agreed to study the use of carbon capture and utilisation technology to convert CO₂ from Arcelormittal’s Vanderbijlpark steelmaking complex in South Africa into sustainable fuels and chemicals, using renewable power and green hydrogen.

“Green hydrogen provides an exciting opportunity for the country to create new hydrogen ecosystems and become a credible exporter of sustainable energy and chemical products, such as hydrogen, ammonia and sustainable aviation fuel, while increasing much-needed employment opportunities,” says Priscillah Mabelane, executive vice-president for Sasol’s energy business.

“Green hydrogen provides an exciting opportunity for the country to create new hydrogen ecosystems and become a credible exporter” Mabelane, Sasol

Sasol has also signed a separate memorandum of understanding (MoU) with the Freeport Saldanha Industrial Development Zone to develop a green hydrogen hub and ecosystem within Saldanha Bay.

Sasol is taking the lead in South Africa’s push to become a significant player in the green hydrogen and sustainable fuel markets.

Last year, it signed an MoU with state-owned Industrial Development Corporation to lead a feasibility study into a proposed $10bn green hydrogen hub at Boegoebaai, in the far northwest of the country on the Namibian border. Sasol is also working on plans to use its Fischer-Tropsch technology to make clean fuels from green hydrogen.

Earlier this year, the South African government launched a Hydrogen Society Roadmap that envisages green hydrogen production reaching at least 500,000t/yr by 2030, with electrolyser capacity hitting a minimum 15GW by a decade later.

The government is trying to accelerate the deployment of renewables to address domestic power shortages as well as supporting green hydrogen production. Earlier this month, state-owned power company Eskom signed its first batch of lease agreements allowing private companies to develop renewables projects at its sites.

The lease agreements last for 25–30 years and are expected to deliver c.2GW of renewables capacity. Eskom plans to issue tenders for further leasing agreements on a quarterly basis.

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Author: Stuart Penson