Sasol floats its accelerated hydrogen plans
Europe’s scramble to find new sources of energy to reduce its reliance on Russia has given Sasol a new purpose to accelerate its green hydrogen plans.
Sasol is focusing on green hydrogen – made by machines called electrolysers which are powered by the wind and sun – on South Africa’s northwest coast. A feasibility study is expected to be completed in two years, according to chief executive Fleetwood Grobler.
Sasol will no longer consider gas supply from a planned pipeline from northern Mozambique because it doesn’t want to get stuck with the infrastructure as the world shifts away from fossil fuels, Grobler said.
“The impetus for renewables like hydrogen has gone up a couple of notches in the last two months,” Grobler said in an interview. “What in my mind changes is that we should move quicker and faster on our hydrogen plays.”
The surge in energy demand can help Sasol, which has been converting coal into synthetic products for more than half a century, pivot to cleaner fuels faster. SA’s second-biggest polluter didn’t even have a plan to transition to green energy until a little over a year ago, Grobler said. It is now – like Shell and Total Energies – targeting to reach net-zero emissions by 2050.
The invasion of Ukraine has Europe searching for new energy sources to starve Russia of funds to fuel the war. Green hydrogen will be an important part of the mix.
The European Union doubled its goal for green-hydrogen capacity to 80 gigawatts by 2030, compared with less than one gigawatt currently. The UK just set a target to produce at least five gigawatts of capacity by 2030.
Still, it will take Sasol at least five years to begin exporting the clean fuel. The key will be to bring prices down from about $5.50 (about R87) a kilogram to $1, Grobler said.
The company plans to take on partners, but he declined to give an overall cost estimate.
It’s crucial for Sasol to get the transition right.
“We know that the sunset of the oil industry is staring us in the face,” he said. –