Sasol and ArcelorMittal South Africa have struck a deal to pursue green hydrogen at Saldanha and carbon capture and utilisation (CCU) in Vaal.
Sasol also signed a memorandum of understanding (MoU) with Freeport Saldanha Industrial Development Zone for a green hydrogen hub at 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 Sasol executive vice president Priscillah Mabelane.
She said the studies were “anchored by the local need for green hydrogen and sustainable products”.
Sasol and ArcelorMittal signed a joint development agreement (JDA) on the green hydrogen and CCU projects.
The Vaal study will aim to capture 1.5 million tonnes per year of industrially produced CO2. It will capture emissions at ArcelorMittal’s Vanderbijlpark Works.
The aim would be to transport the CO2 to the Sasolburg and Ekandustria facilities. The CO2, with green hydrogen, could replace natural gas to produce sustainable chemicals products, it said.
Developments in the Vaal area would allow existing industries and workers to move to sustainable operations.
“These potential projects are an important kick-start to our decarbonisation journey”, said ArcelorMittal South Africa CEO Kobus Verster. The plans “contribute to the South African government’s aspirations to transition to a green economy”, he said.
“Just as importantly, by maximising the utilisation of our installed assets, we will also be stimulating economic growth in our host communities.”
The two projects would help ArcelorMittal become the first African green flat steel producer. It would use the green hydrogen to produce direct reduced iron at its facility in Saldanha.