Itochu Corporation and Sasol have signed a memorandum of understanding (MoU) to study and create the market and supply chain for green ammonia in South Africa.
The MoU was signed during Tunisia’s 8th Tokyo International Conference on African Development (TICAD 8). TICAD is a place for Japan and Africa to work together on the continent’s sustainable development. Present at the signing was MUFG Bank Ltd., a market leader in sustainable financing solutions.
The green ammonia will be used for bunker fuel and power generation.
Both companies will also look at Itochu’s potential role and participation in Sasol’s green ammonia export-focused projects, such as product offtake and financial support for studies from Japan, in relation to green ammonia projects in South Africa.
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Green ammonia is made from green hydrogen, which is made through an electrolysis process from the electricity that comes from renewable sources like the sun and the wind.
For use in the production of fertilizers in the marine industry, where it is useful as a zero-carbon bunkering fuel, and for co-firing in the creation of thermal power, green ammonia is a crucial enabler for achieving net zero. It is used as an excellent energy carrier, especially over e.
Another interesting feature of green ammonia is that to use the product in other ways, it can also be “cracked” back into hydrogen gas.
Hence, Sasol is advancing some green hydrogen investigations and initiatives in South Africa, including the large-scale production of green ammonia for export in Boegoebaai in the Northern Cape province.
According to Sasol, South Africa is well-positioned to become a global centre for green hydrogen and its derivatives, ammonia and sustainable aviation fuels, given the nation’s superior solar, wind, and precious metal resources.
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Hydrogen and ammonia are important parts of Japan’s Green Growth Strategy. They are seen as “new resources” that could help the country become less dependent on carbon-heavy fossil fuels like coal and oil. Therefore, Japan will be a large importer of green ammonia in the future.
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Sasol Executive Vice President on Energy Business, Priscillah Mabelane, said strategic partnerships and collaboration are the keys to creating large-scale green hydrogen projects, adding that this emerging industry can play a vital role in facilitating a just energy transition in South Africa. Priscillah Mabelane, Sasol Executive Vice President of Energy Business, stated that strategic partnerships and collaboration are essential for developing large-scale green hydrogen projects and that this emerging industry can play a critical role in facilitating a just energy transition in South Africa.
According to her: “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.
“This marks yet another milestone in our ambition to lead the energy transition in South Africa through decarbonisation while stimulating industrial development.”