PR97652

JOHANNESBURG, September 2, 2021 /PRNewswire=KYODO JBN/--

Sasol and ITOCHU Corporation have signed a Memorandum of Understanding (MoU) to

jointly study and develop the market and supply chain for green ammonia with a

focus on its use as bunkering fuel and for power generation. The parties will

also evaluate ITOCHU's potential involvement and participation in Sasol's green

ammonia export-orientated project(s), including product offtake as well as

financial support from Japan for studies and grants relating to green ammonia

projects in South Africa.

The MoU has been signed during the Tokyo International Conference on African

Development (TICAD 8) in Tunisia, which is a forum to advance Japan-Africa  

sustainable development on the continent. MUFG Bank Ltd, one of the largest

Financial Institutions in the world, and a market leader in sustainable

financing solutions, witnessed the signing of the MoU.

Green ammonia is produced from green hydrogen, which in turn is produced from

renewable electricity (solar and wind) via an electrolysis process. It is a key

enabler to achieving net-zero in manufacturing fertilizers, in the marine

sector where it can be used as a zero-carbon bunkering fuel, and for co-firing

in thermal power generation. Green ammonia is an excellent energy carrier

especially over long-distances and can be easily transported. The product can

also be "cracked" back to hydrogen gas for further applications.

Sasol is advancing a number of green hydrogen studies and projects in South

Africa, such as in Boegoebaai in the Northern Cape province, that include green

ammonia production at scale for export. Given South Africa's excellent solar,

wind and precious metals resources, the country is poised to become a global

hub for green hydrogen and its derivatives, such as ammonia and sustainable

aviation fuels.

Hydrogen and ammonia play an important role in the Japanese Green Growth

Strategy and are positioned as "new resources" with significant potential to

reduce the country's reliance on carbon-intensive fossil fuels, such as coal

and oil. Japan is expected to be a large importer of green ammonia in the

future.

Sasol Executive Vice President: Energy Business, Priscillah Mabelane, said that

Sasol believes that strategic partnerships and collaboration are the key to

develop large scale green hydrogen projects, and that this emerging sector can

play an important role in enabling a just energy transition in South Africa.

"Sasol is excited about our collaboration with ITOCHU to unlock South Africa's

significant potential as a large-scale producer of green hydrogen and ammonia.

This marks yet another milestone in our ambition to lead the energy transition

in South Africa through decarbonisation, while stimulating industrial

development."

ITOCHU has been strengthening initiatives for the establishment of production

and supply chains for low-carbon ammonia, the development of ammonia-fueled

ships and establishment of an international value chain for ammonia as a fuel

in the marine sector and its use for fertilizer-related applications as well as

in the power-generation sector. Using the MoU as a platform, ITOCHU, together

with Sasol, will jointly study supply chains and markets for green ammonia, and

assess other partnership models related to green hydrogen and ammonia

production and exports from South Africa.

MUFG Bank, Ltd (MUFG) witnessed the signing of the MoU.  Mr Takanori Sazaki –

Senior Executive Officer, Regional Executive Officer EMEA said: "MUFG is

committed to empowering a brighter future and are proactive in addressing

climate change and environmental protection issues. As the first Japanese Bank

to declare carbon neutrality and participate in the UN-led Net Zero Banking

Alliance (NZBA), this MoU aligns with our commitment of achieving Carbon

Neutrality by 2050. We were very pleased to witness the signing of this MoU

between Sasol and ITOCHU – not only because both companies are our important

and long-standing clients, but also because the envisaged cooperation deals

with green hydrogen and ammonia, which we believe will play a key role in

establishing a low-carbon society".

Issued by:

Alex Anderson, Senior Manager: Group Media Relations and External Relations

Mobile: +27 (0) 71 600 9605; Email: alex.anderson@sasol.com

Matebello Motloung, Manager: Group Media Relations

Mobile: +27 (0) 82 773 9457; Email: matebello.motloung@sasol.com

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-quality products globally.

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SOURCE: Sasol