ArcelorMittal may be one step closer to reopening its Saldanha plant, owing to a new partnership with Sasol announced this week.
On Tuesday Sasol and ArcelorMittal South Africa (Amsa) stated they will develop carbon capture technology to produce sustainable fuels and chemicals as well as green steel production through green hydrogen and derivatives.
The two companies have a joint development agreement, with the focus on two potential projects. The first will look at Saldanha and the region’s potential as an export hub for green hydrogen and derivatives as well as green steel production. A study will be conducted to determine the viability of the project.
Additionally, Sasol signed a Memorandum of Understanding (MOU) with the Freeport Saldanha Industrial Development Zone (formerly known as SBIDZ).
This will mean collaboration and providing support in establishing a green hydrogen hub. According to Kaashifah Beukes, Freeport Saldanha CEO, this will unlock new local economic opportunities and, in doing so, “seek to collaborate on the project identification, preparation, pre-feasibility and feasibility assessments with a view of achieving a bankable and implementable project.
“Saldanha Bay has a strong strategic fit with Sasol’s ambition to be a leading driver and contributor to the development of South Africa’s green hydrogen economy. In addition, Freeport Saldanha is a strategic partner for Sasol and Amsa, adding value to their exploration of new markets by bringing together several stakeholders to drive catalytic investments in sustainable industrialisation and product streams,” she explained.
The second Amsa/Sasol project will be the Vaal carbon capture and use study.
This will look at using renewable electricity and green hydrogen to convert captured carbon from Amsa’s Vanderbijlpark steel plant into sustainable fuels and chemicals.
“These potential projects are an important kick-start to our decarbonisation journey,” said Kobus Verster, CEO of ArcelorMittal South Africa, “and create an exciting opportunity to contribute to the South African government’s aspirations to transition to a green economy.”
Priscillah Mabelane, Executive Vice President of Sasol’s Energy Business, said the company was excited about leading the pre-feasibility and feasibility studies on the potential projects.
“These studies are anchored by the local need for green hydrogen and sustainable products, cementing Sasol as the leading contributor to the development of southern Africa’s green hydrogen economy,” Mabelane added.
Amsa has stated it hoped to complete the studies in 2023-’24. The reopening of the plant will be good news for locals, as the Saldanha plant closed its doors in March 2020. High electricity costs were one of the main reasons for the West Coast plant closure.
Through its potential projects Amsa could become the first green flat-steel producer using green hydrogen to produce direct reduced iron (DRI) on the continent. The DRI would be done via the Midrex facility at the local Saldanha Works, which has been under care and maintenance since its closure.
“The two potential projects will drive the re-industrialisation of both the Saldanha and the Vaal regions,” Amsa said, “seeding the opportunity for the development of a green hydrogen ecosystem, in this way enabling long-term, sustainable benefits for communities and the country.
“They are expected to provide many jobs, infrastructure investment and skills development in the country, enabling a just transition.”
