Sasol Climate Change Report 2022 - Book - Page 31
INTRODUCTION
RISKS AND OPPORTUNITIES
OUR FUTURE SASOL STRATEGY
GOVERNANCE
DATA AND ASSURANCE
DECARBONISING OUR OPERATIONS (CONTINUED)
Growing and shifting value (continued)
The Boegoebaai Green Hydrogen Hub Pre-feasibility Study
The global green hydrogen industry shows strong momentum, with several
countries breaking ground on mega-scale projects and various markets launching
tenders and entering partnerships to secure supply. Renewable energy is the most
significant cost component in hydrogen generation and South Africa, particularly
the Northern Cape, is advantaged to produce green hydrogen, given its wind, solar
and land resources.
In October 2021, Sasol signed an MoA with the
Northern Cape Economic Development, Trade and
Investment Promotion Agency, to lead a
pre-feasibility study that explores the potential
for Boegoebaai to be an export hub for green
hydrogen and its derivatives. Sasol is playing a
key integrator role across the value chain to
right-size the project and develop a Master Plan
to enable long-term resilience and socioeconomic success.
The Boegoebaai pre-feasibility study is being
conducted in line with the MoA, where Sasol is
responsible for the inside battery limit (IBL)
scope. The Northern Cape government is taking
the lead, coordinating with other government
entities on the delivery of the outside battery
limit (OBL) enabling infrastructure, such as the
port (led by Transnet National Ports Authority)
and the electricity infrastructure (led by Eskom).
A joint steering committee, as well as integrated
working groups with fortnightly engagements,
was formed to ensure alignment on the OBL
timelines and scope.
Funding Boegoebaai
We are in discussions with potential partners to accelerate the green hydrogen economy in
South Africa through collaboration.
Grant funding is a key component to being able to accelerate and de-risk the early phases
of the project. Several potential partners have indicated a willingness to collaborate and fund
parts of the project. These discussions are ongoing as we advance our pre-feasibility studies.
SASOL CLIMATE CHANGE REPORT 2022 30
The project entails an assessment of the
potential to construct a greenfield facility to
produce green hydrogen first and thereafter
downstream green hydrogen processing units
for green ammonia, green methanol and SAF.
Due to the fast-evolving nature of the green
hydrogen market and technology landscape,
a phased implementation approach is envisaged
to scale the development. We have significantly
progressed our understanding of a robust set
of project alternatives (including technical,
implementation, operations and business
structuring variants) and viable techno-economic
solutions are actively driving mitigation activities
for our identified key risks. Mega-projects are
inherently risky and its size and complexity create
unique challenges. The Boegoebaai project aims
to incorporate learnings from other large-scale
projects and global best practices in capital
project development. The nascent market for
low-carbon hydrogen is also both highly complex
and fast evolving and we are monitoring key
strategic signposts to further inform our
potential designs and scale-up.
