Sasol and ArcelorMittal South Africa have signed a deal to cooperate on green hydrogen production and the decarbonization of the steel production industry in South Africa during the African Energy Week 2022 conference.
South African-based global energy and chemicals company Sasol and steel company ArcelorMittal South Africa (AMCO) signed a Memorandum of Understanding (MoU) to cooperate on green energy development and the decarbonization of the manufacturing industry during the African Energy Week (AEW) conference and exhibition – Africa’s premier event for the oil and gas sector – which runs from October 18 – 21 in Cape Town.
Signed by Priscillah Mabelane, Executive Vice President at Sasol and Aldrich Louis, General Manager, AMCO, the MoU will pave the way for the two to partner on a green hydrogen feasibility study and pilot projects.
The MoU, signed in the presence of H.E. Gwede Mantashe, Minister of Mineral Resources and Energy, South Africa; Alan Winde, Premier of the Western Cape Province and Andre Truter, Executive Mayor of Saldanha Bay, will enable Sasol and AMCO to also cooperate on green hydrogen knowledge sharing and on skills and workforce development.
Commenting on the partnership, Mabelane said “Sasol aims to lead the energy transition in Africa and we intend to play a key role in maximizing hydrogen opportunities. We will revitalize different sectors to stimulate technology development while ensuring global competitiveness of various regions and sectors. We will work with various government entities and the private sector to ensure sustainability and the partnership with AMCO is a crucial enablement of a green hydrogen economy in South Africa. With the partnership, we will put Southern Africa ahead of the global energy transition by repurposing our business to produce hydrogen at scale.”
Mabelane, added that Sasol will “Partner with AMSA at Saldanha Industrial Development to repurpose the facility. With the collaboration, we will ensure South Africa regains its global competitiveness by incrementing the production of steel and green hydrogen. We will capture carbon from AMSA operations and transport it via a pipeline to power our operations and in the process decarbonize.”
Louis added that “What we are witnessing today is two of South Africa’s biggest industry players agreeing to work together on decarbonization to ensure South Africa’s 2050 net-zero target is met. Steel has a huge role to play in the decarbonization of South Africa’s energy and industry sectors. Steel as a recyclable material is very critical in decarbonizing the economy and transforming the way we produce steel through green hydrogen, renewables and carbon capture technology application is what we will be assessing. Sasol will develop green hydrogen and AMSA will leverage the energy to decarbonize. We acknowledge the success of the projects will be a result of increased partnership between government and the private sector.”