PR98347

JOHANNESBURG, Oct. 18, 2022 /PRNewswire=KYODO JBN/ --

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

operations.

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: 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