Sasol and Itochu Corporation have signed a memorandum of understanding (MoU) to jointly study and develop the market and supply chain for green ammonia in South Africa.
The green ammonia would be used as bunkering fuel and for power generation.
The parties will also evaluate Itochu’s potential involvement and participation in Sasol’s green ammonia export-orientated projects, including product offtake as well as financial support from Japan for studies and grants relating to green ammonia projects in South Africa.
Green ammonia is produced from green hydrogen, which in turn is produced from renewable electricity (solar and wind) via an electrolysis process.
Sasol is advancing a number of green hydrogen studies and projects in South Africa, such as in Boegoebaai in the Northern Cape province, that include green ammonia production at scale for export.
Given South Africa’s excellent solar, wind and precious metals resources, the country is poised to become a global hub for green hydrogen and its derivatives, such as ammonia and sustainable aviation fuels, Sasol stated.
Hydrogen and ammonia play an important role in the Japanese Green Growth Strategy and are positioned as “new resources” with significant potential to reduce the country’s reliance on carbon-intensive fossil fuels, such as coal and oil.
Japan is expected to be a large importer of green ammonia in the future.
Sasol Executive Vice President: Energy Business, Priscillah Mabelane, said that Sasol believes that strategic partnerships and collaboration are the key to develop large scale green hydrogen projects, and that this emerging sector can play an important role in enabling a just energy transition in South Africa.
“Sasol is excited about our collaboration with Itochu to unlock South Africa’s significant potential as a large-scale producer of green hydrogen and ammonia.
“This marks yet another milestone in our ambition to lead the energy transition in South Africa through decarbonisation, while stimulating industrial development.”