Chemicals and energy giant, Sasol, and South African state owned development finance institution (DFI), the Industrial Development Corporation (IDC) this week concluded a memorandum of cooperation (MOC) that will see the two parties jointly develop and shape an enabling environment to advance South Africa’s green hydrogen economy.
The development of the hydrogen industry is a key enabler in South Africa’s just transition to a decarbonised futureJoanne Bate, Chief Operations Officer at IDC
In a statement this week the parties said South Africa is in a unique position to leverage its world class renewable resources endowment and infrastructure, as well as utilise Sasol’s Fischer-Tropsch technology and skills to position the country as a leader in a global hydrogen economy.
“Green hydrogen provides an exciting opportunity for the country to create new hydrogen ecosystems and become a credible exporter of sustainable energy and chemical products, such as hydrogen, ammonia and sustainable aviation fuel, while increasing much-needed employment opportunities,” Priscillah Mabelane, Sasol’s Executive Vice President: Energy Business, said.
Sasol and the IDC will, among others, collaborate on a non-exclusive basis in advocating at relevant international fora for policy frameworks to enable a hydrogen economy; developing pilot and commercial scale hydrogen projects to pioneer viable and sustainable solutions; accessing local and international financing options; and pursuing strategic projects that benefit the country’s energy transition and economic development goals.
“Our ambition is to lead and co-create South Africa’s hydrogen ecosystems through strategic partnerships, leveraging our proprietary technology and integrated value chain. We are delighted to partner with the IDC in jointly pursuing South Africa’s green hydrogen potential to support a just energy transition and unlock new value chains to ignite the country’s economy,” added Sasol’s Mabelane.
Joanne Bate, Chief Operations Officer from the IDC said: “ Hydrogen has the potential to decarbonise various industrial sectors. IDC intends on getting involved in the development of those catalytic projects needed to develop this new industry. We are looking forward to working together with Sasol in identifying and co-developing such catalytic projects. Our involvement in the development of the hydrogen industry also provides opportunities to fulfill our development mandate which entails job creation and opportunities to involve previously disadvantaged entities.”