Name of the Project
Green-economy projects.

Location
Gauteng and the Western Cape, in South Africa.

Project Owner/s
Sasol and ArcelorMittal South Africa.

Project Description
Sasol and ArcelorMittal South Africa announced a partnership in October 2022 to develop carbon capture technology to produce sustainable fuels and chemicals, and green steel production through green hydrogen and its derivatives.

Two potential projects are being considered, both of which have the potential to enable ArcelorMittal South Africa to be the first African green flat steel producer.

The projects aim to use green hydrogen to produce direct reduced iron through the Midrex facility at ArcelorMittal’s Saldanha Works, in the Western Cape, which is under care and maintenance, while reducing the carbon footprint of ArcelorMittal’s flagship Vanderbijlpark Works, in Gauteng. The Saldanha green hydrogen and derivatives study will investigate the region’s potential as an export hub for green hydrogen and derivatives, as well as green steel production.

The Vaal carbon capture and utilisation study proposes the use of renewable electricity and green hydrogen to convert captured carbon from ArcelorMittal South Africa’s Vanderbijlpark steel plant into sustainable fuels and chemicals.

The project will investigate using up to 1.5-million tonnes a year of unavoidable industrial CO₂ captured from the Vanderbijlpark Works. The CO₂ is envisaged to be transported to the Sasolburg and Ekandustria operating facilities in Sasolburg, in the Free State, and, together with green hydrogen, will eventually replace natural gas as a feedstock to produce sustainable chemicals products.

Sasol has signed a memorandum of understanding with Freeport Saldanha Industrial Development Zone to develop a globally competitive green hydrogen hub and ecosystem in Saldanha Bay.

Potential Job Creation
The projects are expected to provide a significant number of jobs, infrastructure investment and skills development.

Capital Expenditure
Not stated.

Planned Start/End Date
Not stated.

Latest Developments
ArcelorMittal South Africa spokesperson Tami Didiza told Engineering News in June that discussions and investigations with regard to the project are ongoing; however,  “no finality has been reached as yet. Investigations are not yet complete.”

Key Contracts, Suppliers and Consultants
None stated.

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