Country for PR: United Kingdom
Contributor: PR Newswire Europe
Wednesday, October 19 2022 - 02:58
Sasol, ArcelorMittal South Africa partner to decarbonise and reindustrialise Vaal, Saldanha through green hydrogen
JOHANNESBURG, Oct. 18, 2022 /PRNewswire-AsiaNet/ --

Sasol and ArcelorMittal South Africa have announced a partnership to develop 
carbon capture technology to produce sustainable fuels and chemicals, and green 
steel production through green hydrogen and derivatives.

Under a joint development agreement (JDA), they will advance studies into two 
potential projects: the Saldanha green hydrogen and derivatives study which 
will explore the region's potential as an export hub for green hydrogen and 
derivatives, as well as green steel production; and the Vaal carbon capture and 
utilisation (CCU) study to use renewable electricity and green hydrogen to 
convert captured carbon from ArcelorMittal South Africa's Vanderbijlpark's 
steel plant into sustainable fuels and chemicals.

In addition, Sasol signed a Memorandum of Understanding (MOU) with Freeport 
Saldanha Industrial Development Zone to develop a globally competitive green 
hydrogen hub and ecosystem within 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. These studies 
are anchored by the local need for green hydrogen and sustainable products, 
cementing Sasol as the leading contributor to the development of southern 
Africa's green hydrogen economy," said Priscillah Mabelane, Executive Vice 
President for Sasol's Energy Business. 

"These potential projects are an important kick-start to our decarbonisation 
journey and create an exciting opportunity to contribute to the South African 
government's aspirations to transition to a green economy," said Kobus Verster, 
Chief Executive Officers, of ArcelorMittal South Africa."Just as importantly, 
by maximising the utilisation of our installed assets, we will also be 
stimulating economic growth in our host communities."

Sasol and ArcelorMittal South Africa are two of South Africa's biggest 
industrial operators that both have an ambition to achieve net zero carbon 
emissions by 2050, as well as reach their respective sustainability ambitions 
and decarbonisation roadmaps. This places Sasol as a leading contributor to the 
development of Southern Africa's green hydrogen economy with the opportunity to 
incubate local and export opportunities for green hydrogen and green hydrogen 
derivatives. Both initiatives have the potential for ArcelorMittal South Africa 
to be the first African green flat steel producer using green hydrogen to 
produce direct reduced iron (DRI) via the Midrex facility at its Saldanha Works 
(which is presently under care and maintenance), while also reducing the carbon 
footprint of its flagship Vanderbijlpark Works.

The Industrial Development Corporation (IDC) commended Sasol and ArcelorMittal 
South Africa on their progressive partnership. "As government's hydrogen 
economy development and commercialisation champion, the IDC supports sector 
linkages like this that are critical to realising South Africa's ambition to 
develop the green hydrogen economy," said Joanne Bate, Chief Operating Officer 
for the IDC.

The Vaal Triangle in South Africa has been home to fossil fuel-based industrial 
operations that have been crucial to the country's economic development, 
supporting many livelihoods through job creation and contribution to the 
country's GDP. Many of the assets in these operations can pivot to sustainable 

The Vaal CCU study will explore using up to 1.5 million tonnes a year of 
unavoidable industrial CO2 captured from the ArcelorMittal South Africa's 
Vanderbijlpark Works. The CO2 is envisaged to be transported to the Sasolburg 
and Ekandustria operating facilities in Sasolburg and, together with green 
hydrogen, will eventually replace natural gas as a feedstock to produce 
sustainable chemicals products.

The two potential projects will drive the re-industrialisation of both the 
Saldanha and the Vaal regions, seeding the opportunity for the development of a 
green hydrogen ecosystem, thereby enabling long-term, sustainable benefits for 
communities and the country. They are expected to provide a significant number 
of jobs, infrastructure investment and skills development in the country, thus 
enabling a Just Transition.

The partnership positions South Africa and the region to play a significant 
role in the global green hydrogen economy in that it leverages key structural 
advantages, such as renewable resources, mineral endowments, technical skills 
and anchors local demand.

Issued by:
Alex Anderson, Senior Manager: Group Media Relations and External Communication
Mobile : +27 (0) 71 600 9605; Email: 

Matebello Motloung, Manager: Group Media Relations
Mobile: +27 (0) 82 773 9457; Email:

About Sasol:
Sasol is a global chemicals and energy company. We harness our knowledge and 
expertise to integrate sophisticated technologies and processes into 
world-scale operating facilities.

We strive to safely and sustainably source, produce and market a range of high 
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