Sasol, ArcelorMittal to jointly explore green hydrogen, carbon capture projects

Sasol

18/10/2022 11:00

Oct 18 (Reuters) - South African petrochemicals company
Sasol  SOLJ.J  on Tuesday said it was partnering steelmaker
ArcelorMittal South Africa  ACLJ.J  to explore carbon capture
technology and steel production using green hydrogen.
    Green hydrogen, produced from splitting water into hydrogen
and oxygen using renewable energy sources such as solar and
wind, is considered a cleaner energy source for the future, but
the technology is still in its infancy and relatively expensive.
    Sasol is the world's biggest producer of fuel products and
chemicals from coal, but is transitioning away from the fossil
fuel as part of its decarbonisation plan. ArcelorMittal South
Africa is Africa's biggest steel producer, with a significant
carbon footprint.
    Both companies are targeting net zero carbon emissions by
2050, in line with the South African government's aim to cut
climate-warming gas emissions.
    In a statement, Sasol said the two firms would jointly
advance a green hydrogen and derivatives study on the Saldanha
region's potential as an export hub for green hydrogen and
derivatives, as well as green steel production. 
    They will study the use of renewable electricity and green
hydrogen to convert captured carbon from ArcelorMittal's
Vanderbijlpark steel plant into sustainable fuels and chemicals,
it said.
    "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 Energy. 
    The initiatives could see ArcelorMittal South Africa
becoming Africa's first green flat steel producer using green
hydrogen from its Saldanha works, which are currently under care
and maintenance, while also reducing the carbon footprint of its
flagship Vanderbijlpark works.
    "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 of ArcelorMittal South Africa.
 (Reporting by Nelson Banya and Wendell Roelf; editing by David
Evans)
 ((Nelson.Banya@thomsonreuters.com;))