Sasol to lead feasibility study for Boegoebaai hydrogen project
South African energy company Sasol has signed a memorandum of agreement (MoA) with the Northern Cape Development Agency (NCEDA) to lead the feasibility study to explore the potential of Boegoebaai as an export hub for green hydrogen and ammonia, it said on October 6.
The Boegoebaai green hydrogen development has been designated a strategic integrated project (SIP) in the South African National Development Plan and is located in the Namakwa Special Economic Zone (SEZ).
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“The project’s location and classification as a SIP are key enablers to exploring Boegoebaai’s potential as a global green hydrogen hub,” Sasol said. This study is expected to take approximately 24 months. The outcomes of this feasibility study will determine the next step of development, the company added.
Sasol has also signed an MoA with the Gauteng provincial government to leverage SEZs that have been earmarked as enablers to unlocking South Africa’s green hydrogen market potential for domestic use, such as mobility and aviation. In parallel, Sasol has partnered with the Industrial Development Corp who will provide joint funding for the feasibility study.
According to Sasol, the Boegoebaai project is one of a number of green hydrogen, ammonia and power-to-X (P2X) opportunities, which the company is assessing as part of the new strategy announced at its recent capital markets day.
“We believe that Southern Africa is well-positioned to play in the global green hydrogen economy due to key structural advantages. In particular, our proprietary Fischer-Tropsch technologies and renewable endowments, are some of the best in the world,” said Sasol energy VP Priscillah Mabelane.
As the lead project integrator, Sasol will bring together strategic partners along the value chain and other enabling role players that will drive industrialisation of the Northern Cape. These include potential customers, funders, investors, technology suppliers and South African green energy providers.