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.
The Boegoebaai green hydrogen development has been designated a Strategic Integrated Project (SIP) in the South African National Development Plan.
It is located in the Namakwa Special Economic Zone (SEZ).
The project’s location and classification as a SIP are key enablers to exploring Boegoebaai’s potential as a global green hydrogen hub.
Sasol has been engaging with the Infrastructure and Investment Office (IIO) of the Presidency to develop a hydrogen economy in South Africa.
This study is expected to take approximately 24 months. The outcomes of this feasibility study will determine the next step of development.
Sasol has signed a MOA with the Gauteng Provincial Government (GPG) to leverage Special Economic Zones (SEZs.
These 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 Corporation (IDC) who will provide joint funding for the feasibility study.
Sasol executive vice president for energy Priscillah Mabelane said: “We are very excited to be leading this feasibility study as part of unlocking South Africa’s potential to be a global green hydrogen and green ammonia export player with the potential for sustainable aviation fuels in the future.
“This will also be anchored by local demand for green hydrogen.
“It is a tangible step forward for Sasol, as we seek to play a leading role in establishing the Southern Africa green hydrogen economy.”
Sasol continues to advance several catalytic projects to develop both local and export opportunities in the region.
The Boegoebaai project is one of a number of green hydrogen, ammonia and power-to-X (P2X) opportunities, which Sasol is assessing as part of the new strategy announced at its recent capital markets day.
Sasol’s strategy is aligned with South Africa’s ambitions to establish the country as a significant green hydrogen production and global export hub.
Mabelane added: “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.
“There is potential to create an ecosystem anchored on localisation to enable long-term, sustainable benefits for communities and the country.
“The project has the potential to provide a significant number of long-term sustainable jobs, infrastructure investment and skills development in the country, enabling a Just Transition.
“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.
“Sasol has committed to be net zero by 2050 and we see green hydrogen as core to enabling this goal.
“We have the capabilities and skill set, technology and solutions to co-create the South African hydrogen economy.”