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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
















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