Sasol, Itochu to study options for green ammonia production in S Africa

Hydrogen tanks. Source: US Office of Energy Efficiency & Renewable Energy

September 5 (Renewables Now) - South African chemicals company Sasol (JSE:SOL) and Japan’s Itochu Corp (TYO:8001) have joined forces to study and develop the market and supply chain for green ammonia production in South Africa.

The companies have signed a Memorandum of Understanding (MoU) that outlines plans for the initiative and puts a focus on the use of green ammonia as bunkering fuel and for power generation, Sasol said on Friday.

Additionally, the duo will assess the potential for Itochu’s participation in Sasol's green ammonia export-orientated projects and the output of the production. Options will also be explored for securing financing from Japan for the studies as well as grants for the execution of green ammonia projects in South Africa.

"Sasol is excited about our collaboration with Itochu to unlock South Africa's significant potential as a large-scale producer of green hydrogen and ammonia,” said Priscillah Mabelane, Executive Vice President Energy Business at Sasol.

At present, Sasol is working on several green hydrogen studies and projects in its home country, one of which envisages the production of green ammonia for export in the Northern Cape province.

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