Sasol Green Hydrogen strategy shifts towards Northern Cape partnerships
The energy giant admits it cannot go it alone at Boegoebaai, pivoting to a collaborative ‘catalyst and integrator’ role as it eyes a broader portfolio of renewable projects across the province.
Larry Claasen
SASOL’s decision to bring in partners for its Boegoebaai Green Hydrogen project is an acknowledgement that it cannot go it alone.
Earlier this year, the group completed a pre-feasibility study into producing Green Hydrogen and ammonia at Boegoebaai, in the Northern Cape. The process would use renewable energy to power electrolysis, turning seawater into clean fuel for export.
Boegoebaai is envisaged as a major Green Hydrogen hub, with Transnet expected to build a R13,8 billion deep-water port there to support the sector. The Northern Cape government has previously indicated that R122 billion in greenfield projects could be required to realise the full vision, encompassing the port, a dedicated rail link and the hydrogen production facilities.
Why Sasol is pivoting to a partnership model
Although Sasol’s study confirmed strong technical and economic potential, the energy group said it is pivoting away from sole development and towards a “catalyst and integrator” role, bringing in multiple partners.
“Bringing in partners will de-risk early-stage development and also offers the best opportunity to unlock investment,” Sasol said in response to questions from CBN. By securing a diverse array of partners, the company hopes to mitigate the significant financial risks associated with a project of this magnitude.
“Large-scale Green Hydrogen development cannot be delivered through a single project alone,” Sasol stated. “Success will depend on coordinated development of renewable energy generation, transmission capacity, logistics infrastructure, land access and market demand across the province.”
Dr Sarushen Pillay, executive vice president for business building, strategy and technology at Sasol, told the group’s results presentation that while the Northern Cape is one of the best areas in the world for both wind and solar, unlocking its potential would require significant effort.
“We’re working quite closely with the Northern Cape government, other industrial partners, Business Unity South Africa (BUSA), and the national government on how we can unlock that region,” he said.
Grid access remains the biggest bottleneck
The key obstacle is grid access; the region currently lacks a robust connection to South Africa’s national electricity network. Pillay noted that the national government is actively working to build grid capacity by involving the private sector.
“You’ll see the Department of Electricity and Energy (DEE) is moving in terms of bringing Independent Power Producers (IPPs) on board to participate in grid development. So that will help unlock it,” he added.
Transmission capacity is expected to receive a significant boost, with the government reporting progress on expansion in the region.
“We are encouraged by the commitment the DEE and the National Transmission Company of South Africa (NTCSA) have shown to accelerating a 765kV super-high-voltage line linking the Northern Cape to major industrial load centres, as profiled in the NTCSA’s presentation at the recent SA-China investment conference in Beijing,” Sasol told CBN.
Small steps towards a larger goal
Despite the hurdles, Pillay reaffirmed Sasol’s commitment. “It’s something that we’re working to unlock and we certainly see the potential of that opportunity,” he said.
Sasol has already demonstrated this commitment. In July, it commissioned a 2kW proton exchange membrane electrolyser at its research and technology campus in Sasolburg. Shortly afterwards, it appointed China-based Envision Energy to conduct a design study, assessing how renewable generation, storage and electrolyser technologies could be integrated to support Green Hydrogen production at its Sasolburg operations.
Sasol said its Green Hydrogen ambitions now extend beyond Boegoebaai, as it looks to encompass a broader portfolio of renewable energy opportunities across the province.
“The pre-feasibility study confirmed the strong technical and economic potential of Boegoebaai, but it also reinforced that large-scale Green Hydrogen development cannot be delivered through a single project alone,” the company reiterated to CBN.
