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AfrElec HYDROGEN AfrElec
Itochu and Sasol agree next-gen
hydrogen and ammonia deal
JAPAN SASOL, a South African energy and chemical is a realistic potential use for green ammonia
firm based in Johannesburg, has agreed a deal now being investigated by the Japanese firm; in
with leading Japanese conglomerate Itochu to particular, the possibilities around its effective-
work on the development of green hydrogen and ness as a co-firing element in thermal power
green ammonia to be used both as a next-gener- generation.
ation marine fuel and also in power generation. Speaking of this potential, a Sasol spokesper-
A memorandum of understanding (MoU) to son said: “Green ammonia is an excellent energy
confirm the agreement was reportedly signed as carrier, especially over long distances, and can
part of the recent Tokyo International Confer- be easily transported,” continuing: “The product
ence on African Development (TICAD 8) held can also be ‘cracked’ back to hydrogen gas for
in the Tunisian capital. further applications.”
The parties involved will be working together Green hydrogen is itself manufactured by
primarily to increase the global market for green splitting water into its base hydrogen and oxygen
ammonia as a shipping fuel, with Itochu gaining elements by using either solar or wind power.
a foothold in existing green ammonia projects Crucial to the long-term success of the MoU,
operated by Sasol in exchange for financial sup- the signing was witnessed by Takanori Sazaki, the
port from Japan. senior executive officer, and regional executive
Speaking after the signing of the MoU, exec- officer for Europe, the Middle East and Africa
utive vice president of energy business at Sasol at Japan’s leading MUFG Bank, Ltd (MUFG),
Priscillah Mabelane said: “Sasol is excited about who said: “MUFG is committed to empowering
our collaboration with Itochu to unlock South a brighter future and are proactive in addressing
Africa’s significant potential as a large-scale pro- climate change and environmental protection
ducer of green hydrogen and ammonia”, adding: issues. As the first Japanese Bank to declare car-
“This marks yet another milestone in our ambi- bon neutrality and participate in the UN-led Net
tion to lead the energy transition in South Africa Zero Banking Alliance (NZBA), this MoU aligns
through decarbonisation, while stimulating with our commitment of achieving Carbon Neu-
industrial development.” trality by 2050. We were very pleased to witness
The South African firm is currently the the signing of this MoU between Sasol and Ito-
world’s largest producer of fuel products derived chu – not only because both companies are our
from coal products, but is known to be veer- important and long-standing clients, but also
ing away from dependency on coal as part of because the envisaged co-operation deals with
the nationwide moves to eventual net-zero green hydrogen and ammonia, which we believe
emissions. will play a key role in establishing a low-carbon
To this end, Sasol has already made progress society”.
in recent years on green hydrogen development In response, a release from Sasol highlighted
in the nation’s North Cape, with green ammonia the Japanese goal of increasing the role of hydro-
products being prepared for export. gen and ammonia in Tokyo’s Green Growth
And with one eye on its own government’s Strategy by claiming that “Japan is expected to be
‘Green Growth Strategy’ in Tokyo, Itochu is a large importer of green ammonia in the future.”
understood to be working on sourcing an Whilst this may prove correct in the long run,
increased number of supply routes to help in Jap- some in Tokyo view such early assumptions as
anese initiatives towards powering ships using the South African partners in the MoU pushing
ammonia in the years ahead. a little too hard, a little too soon.
According to Sasol, power generation too
Week 36 08•September•2022 www. NEWSBASE .com P13