Sasol and ITOCHU agree on green hydrogen and ammonia
Hydrogen and ammonia play an important role in the Japanese Green Growth Strategy and are positioned as “new resources”.
Sasol and ITOCHU Corporation have signed a Memorandum of Understanding (MoU) to jointly study and develop the market and supply chain for green ammonia with a focus on its use 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 project(s), including product offtake and financial support from Japan for studies and related grants to green ammonia projects in South Africa.
Sasol is advancing several 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.
Using the MoU as a platform, ITOCHU and Sasol will jointly study supply chains and markets for green ammonia and assess other partnership models related to green hydrogen and ammonia production and exports from South Africa.
Priscillah Mabelane, Sasol Executive Vice President, said, “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.”
Mr Takanori Sazaki, MUFG Bank (MUFG) Senior Executive Officer, said, “We were very pleased to witness the signing of this MoU between Sasol and ITOCHU – not only because both companies are our important and long-standing clients, but also because the envisaged cooperation deals with green hydrogen and ammonia, which we believe will play a key role in establishing a low-carbon society”.