Energy and chemicals company Sasol senior sustainability manager Viran Pillay has reiterated that the group already has the technology to produce green hydrogen, which will form a key part of its strategy to transitioning from being the second-largest greenhouse-gas emitter in South Africa to net-zero by 2050.

Speaking at the 2022 PGMs Industry Day, in Johannesburg, on April 6, Pillay said Sasol had full logistics trains in place to support the production of green hydrogen.

He said Sasol’s strategy was to collaborate with others to co-create the hydrogen economy in South Africa as part of the just transition away from fossil fuels.

He explained that Sasol’s first approach was to use existing assets to manufacture the hydrogen, such as electrolyser units and ammonia plants. The hydrogen manufactured in this way would be aimed at servicing local demand.

The second approach, which would come later down the line, was to build greenfield projects dedicated to green hydrogen manufacture for export.

Pillay said the timing of the implementation of these approaches was difficult to pinpoint currently because it depended on numerous factors, such as electrolyser costs and energy transmission infrastructure requirements.

Moreover, he said the right enabling policy and regulation frameworks needed to be developed, which was of critical importance.

Moreover, further investment was required to scale up production and improve efficiencies to reduce production costs.

“Green hydrogen is expensive today. We’re going to need an offtaker who will come in as an earlier adopter and pay premiums for these products so that companies like Sasol can make more investments and put green hydrogen into the market,” he said.

Sasol’s first green hydrogen production would be using existing 60 MW electrolysers to create 3.5 t/d of green hydrogen for the local market.

An offshoot of this would be a hydrogen mobility project, which Pillay said would involve putting a green hydrogen fuel into a vehicle and showcasing its viability and encourage investment.

“We expect this demo to take place within the next 12 to 18 months,” he said.

He said Sasol had also launched a company to license its proprietary hydrogen technology around the globe.

“Sasol has technology that the world can use,” he said.