Sasol, ArcelorMittal ink hydrogen, CCU deal

South African energy group Sasol has formed a partnership with steelmaker ArcelorMittal to develop carbon capture technology for producing sustainable fuels and chemicals, and manufacture clean steel using green hydrogen, Sasol said on October 18.

Under the joint development agreement, the pair will study production and potential export of green hydrogen in Saldanha, South Africa, and how it can be used to make steel manufacturing cleaner. They will also study carbon capture and utilisation (CCU), in order to use renewable electricity and green hydrogen to convert captured carbon from ArcelorMittal South Africa’s Vanderbijlpark’s steel plant in Vaal to produce fuels and chemicals.

Sasol also signed a memorandum of understanding (MoU) with Freeport Saldanha Industrial Development Zone on establishing a green hydrogen hub.

“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,” said Sasol's executive vice president, Priscillah Mabelane.

The studies are “anchored by the local need for green hydrogen and sustainable products," she said.