AsiaElec: Itochu and Sasol agree next-gen hydrogen and ammonia deal

Sasol, a South African energy and chemical firm based in Johannesburg, has agreed a deal with leading Japanese conglomerate Itochu to work on the development of green hydrogen and green ammonia to be used both as a next-generation marine fuel and also in power generation.

A memorandum of understanding (MoU) to confirm the agreement was reportedly signed as part of the recent Tokyo International Conference on African Development (TICAD 8) held in the Tunisian capital.

The parties involved will be working together primarily to increase the global market for green ammonia as a shipping fuel, with Itochu gaining a foothold in existing green ammonia projects operated by Sasol in exchange for financial support from Japan.

Speaking after the signing of the MoU, executive vice president of energy business at Sasol Priscillah Mabelane said: “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”, adding: “This marks yet another milestone in our ambition to lead the energy transition in South Africa through decarbonisation, while stimulating industrial development.”