Integrated chemicals and energy company Sasol has signed a memorandum of agreement with the Northern Cape Economic Development, Trade and Promotion Agency 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 in the South African National Development Plan and is located in the Namakwa Special Economic Zone (SEZ).

Sasol has partnered with the Industrial Development Corporation (IDC), which will provide joint funding for the feasibility study.

The study is expected to take about 24 months to complete.

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. 

“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,” says Sasol energy VP Priscillah Mabelane.

Sasol has been engaging with the Infrastructure and Investment Office of the Presidency to develop a hydrogen economy in South Africa.

The company continues to advance several catalytic projects to develop both local and export opportunities in the region. This Boegoebaai project is one of a number of green hydrogen, ammonia and power-to-X (P2X) opportunities being assessed by Sasol 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.

“We believe 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,” says Mabelane.

“There is potential to create an ecosystem anchored on localisation to enable long-term, sustainable benefits for communities and the country. The Boegoebaai 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,” she adds.