A financial adviser has been appointed to assist Sasol in a search for potential coinvestors into a green hydrogen and ammonia export hub at Boegoebaai, in the Northern Cape, following the completion of a prefeasibility study into the site’s potential.
The study, which was initiated in 2021, reportedly confirmed that Boegoebaai has the potential to be technically and economically viable as a multi-investor green hydrogen hub.
Mizuho International has, thus, been appointed to facilitate an “international search for partners to co-invest and to complete further studies in this continent-leading opportunity”.
Located just south of the Namibian border, Boegoebaai has been identified as the site for a proposed new deepwater port and special economic zone for the export of manganese ore and, potentially, green hydrogen and derivative products.
The ‘Boegoebaai Green Hydrogen Programme’ was Gazetted as a strategic integrated project, or SIP, in December 2022 and, in October, the Transnet National Ports Authority announced that three consortia had been selected to bid to deliver port and rail infrastructure at and to the site.
The project also features as part of the recently published implementation plan for South Africa’s Just Energy Transition Investment Plan, which outlines an energy transition funding requirement of R1.5-trillion for the period between 2023 and 2027, including R319-billion for green hydrogen initiatives.
“Sasol recognises and embraces its responsibility as a leader of the energy transition in South Africa, including building the new industrial frontier that green hydrogen represents,” energy business VP Priscillah Mabelane said in a statement.
“A partnership construct, in pursuing this ambition, is critical in our disciplined capital allocation approach to manage the inherent risk of such an early-stage development,” she added.
Sasol indicated that partnering enquiries could be directed to Victor Barcot or Gerard McHugh at Mizuho International, using the project.daisy@ae.mizuho-sc.com email contact address.