Name of the Project
Boegoebaai green hydrogen programme.

Location
The Namakwa Special Economic Zone (SEZ), in the Northern Cape, South Africa.

Project Owner/s
Sasol.

Project Description
The Boegoebaai development was designated a Strategic Integrated Project (Sip) – an industrial development initiative under the South African National Development Plan – in December 2022.

In 2023, Sasol successfully completed a prefeasibility study, demonstrating the project’s potential as a game-changer in green hydrogen and ammonia export. 

Boegoebaai has an established hydrogen production plant. The expanded development is expected to include 60 000 ha adjacent to the existing plant.

The proposed SEZ will also feature an electrolyser park; a desalination plant; a green ammonia production plant; a storage facility for green hydrogen and ammonia; a solar, wind and battery park; a supplier park for common components; and a gigafactory comprising an advanced manufacturing site to ramp up the production of electrolysers.

The outcomes of the feasibility study will determine the next step of development.

While the study is under way, the Northern Cape is considering how it can best position the province as a significant producer of green hydrogen and a distribution hub for the export market.

Sasol’s plans include:

• the construction of 10 GW of electrolyser capacity at the Boegoebaai SEZ by 2025/26;
• the packaging of 240 000 ha for the development of renewable-energy generation infrastructure;
• partnering with the private sector to build a green hydrogen pipeline system to connect projects across the province to the SEZ; and
• partnering with State-owned freight and logistics group Transnet for the deployment of dedicated rail infrastructure to link green hydrogen producers to the SEZ, as well as other ports in the country, by 2030.

Potential Job Creation
Not stated.

Capital Expenditure
Sasol has partnered with the IDC, which will provide joint funding for the feasibility study.

Planned Start/End Date
The feasibility study is expected to take about 24 months and will determine the next step of development.

Latest Developments
The Namakwa SEZ was designated in May 2024, marking a strategic milestone. The SEZ licence will be strategically leveraged to facilitate the application process for the Boegoebaai SEZ and represents a vital step towards enabling the green economy transformation within the Northern Cape.

Sasol has appointed Mizuho International to support its search for partners with whom to co-invest and undertake further studies into the Boegoebaai green hydrogen/ammonia export opportunity.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Sasol senior manager: group media relations and external communication Alex Anderson, tel +27 71 600 9605 and email alex.anderson@sasol.com.