South African energy and chemicals company Sasol has partnered with steelmaker ArcelorMittal South Africa to develop a green hydrogen hub in Saldanha Bay. The green hydrogen project will explore carbon capture technology and steel production using hydrogen produced from renewable energy.
The officials from both companies signed a memorandum of understanding during the Africa Energy Week (AEW) conference and exhibition that was held in Cape Town. Both Arecloemittal and Sasol have agreed to work together on green energy development and decarbonization of the local manufacturing industry.
ArcelorMittal is Africa’s one of the largest steel producers, with a significant carbon footprint. Also, Sasol is one of the world’s leading fuel and chemical producers from coal, but the company is gradually transitioning towards greener energy as part of its decarbonization plan. Both companies have set their target to net zero carbon emissions by 2050, in line with South Africa’s aim to cut greenhouse gas emissions.
According to Sasol, both firms would advance studies on the potential of Saldanha Bay as an export hub for green hydrogen and derivatives. They will also look into the use of renewable energy and green hydrogen to convert carbon captured from ArcelorMittal’s steel plant at Vanderbijlpark industrial city into green steel production as well as sustainable fuels & chemicals.
Priscillah Mabelane, Executive Vice President for Energy at Sasol mentioned the studies are anchored by the need for green hydrogen and sustainable products in South Africa, cementing the company as one of the leading contributors to the development of the green hydrogen economy of the country.
The project will help ArcelorMittal South Africa to become Africa’s first green steel producer using green hydrogen from its Saldanha works, which are currently under maintenance. This will also enable the company to reduce the carbon footprint of its flagship Vanderbijlpark Works.
Kobus Verster, CEO of ArcelorMittal South Africa Ltd., said these potential projects are an important kick-start to their steps towards decarbonization and create an exciting opportunity to contribute to the government’s target to transition to a greener economy.
The green hydrogen project is also welcomed by the South African government. According to Alan Winde, Western Cape Premier, the project is an important component of the province’s push for green energy. The project at Saldhana Bay has a huge potential for helping to dig the country out of the energy catastrophe as well as creating jobs in critical fields that needs to be properly harnessed.
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