Sasol and ArcelorMittal collaborates for green energy production

20 Oct 2022 CW Team

Sasol, a South African petrochemicals company, announced that it is collaborating with steelmaker ArcelorMittal South Africa to investigate carbon capture technology and steel production using green hydrogen.

Green hydrogen is a cleaner energy source for the future that is produced by splitting water into hydrogen and oxygen using renewable energy sources such as solar and wind, but the technology is still in its infancy and relatively expensive.

Sasol is the world's largest producer of coal-based fuel products and chemicals, but as part of its decarbonization strategy, it is transitioning away from the fossil fuel. ArcelorMittal is South Africa's largest steel producer, and it has a large carbon footprint.

Both companies aim for net zero carbon emissions by 2050, in line with the South African government's goal of reducing greenhouse gas emissions. According to a statement from Sasol, the two companies will work together to advance green hydrogen and derivatives research on the Saldanha region's potential as an export hub for green hydrogen and derivatives, as well as green steel production.

According to the company, they will investigate the use of renewable electricity and green hydrogen to convert captured carbon from ArcelorMittal's Vanderbijlpark steel plant into sustainable fuels and chemicals.

“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 from its Saldanha works, which are currently under care and maintenance, while also reducing the carbon footprint of its flagship Vandebijlpark works.”

“These potential projects are an important kick start to our decarbonisation journey and create an exciting opportunity to the South African government’s aspirations to transition to a green economy,” said KObus Verster, chief executive of ArcelorMittal South Africa.