ArcelorMittal South Africa (AMSA) is exploring the production of green hydrogen directly reduced iron (gHDRI) at its dormant Saldanha Steel Works in the Western Cape.
A memorandum of understanding has been signed with an undisclosed “developer of transformational energy solutions” for this purpose. The investigation will focus on using green hydrogen in the Saldanha Works’ Midrex process to produce gHDRI, which could be exported or used domestically.
South Africa’s potential to become a low-cost green hydrogen producer is bolstered by its abundant natural resources and the drive to reduce production costs.
The Saldanha Works could become a significant consumer of green hydrogen, consuming up to 104,000 tonnes per year in gHDRI production. This aligns with ArcelorMittal’s Decarbonisation Roadmap, aiming to lower carbon intensity. However, gHDRI is not part of the group’s immediate carbon reduction plans.