According to a joint statement, South African energy company Sasol and ArcelorMittal South Africa have announced a partnership to develop carbon capture technology to produce sustainable fuels and chemicals, and green steel production through green hydrogen and derivatives.
The companies will advance studies into two potential projects, namely the Saldanha green hydrogen and derivatives study which will explore the region’s potential as an export hub for green hydrogen and derivatives, as well as green steel production; and the Vaal carbon capture and utilization (CCU) study to use renewable electricity and green hydrogen to convert captured carbon from ArcelorMittal South Africa’s Vanderbijlpark’s steel plant into sustainable fuels and chemicals.
“These potential projects are an important kick-start to our decarbonization journey and create an exciting opportunity to contribute to the South African government’s aspirations to transition to a green economy. Just as importantly, by maximizing the utilization of our installed assets, we will also be stimulating economic growth in our host communities,” said Kobus Verster, chief executive officer of ArcelorMittal South Africa.
Sasol and ArcelorMittal South Africa are both aiming to achieve net zero carbon emissions by 2050. Both projects have the potential for ArcelorMittal South Africa to be the first African green flat steel producer using green hydrogen to produce direct reduced iron (DRI) via the Midrex facility at its Saldanha Works (which is presently under care and maintenance), while also reducing the carbon footprint of its flagship Vanderbijlpark Works.