Under the Memorandum of Understanding (MoU), the companies plan to evaluate Japanese-based ITOCHU’s potential involvement and participation in Sasol’s green ammonia export-orientated projects.

H2 View understands the forementioned projects include product offtake as well as financial support from Japan for studies and grants relating to green ammonia projects in South Africa.

Hydrogen and green ammonia play are set to play a key role in the Japanese Green Growth Strategy and hold significant potential to reduce the country’s reliance on carbon-intensive fossil fuels. Many have eyed Japan as a large green ammonia importer in the future.

Read more: G7: Japan – Introducing the Japanese Hydrogen Association

Priscillah Mabelane, Executive Vice-President for Energy Business at Sasol, commented, “Sasol is excited about our collaboration with ITOCHU to unlock South Africa’s significant potential as a large-scale producer of green hydrogen and ammonia. This marks yet another milestone in our ambition to lead the energy transition in South Africa through decarbonisation, while stimulating industrial development.”

Having witnessed the signing between the bank’s clients, Takanori Sazaki, Senior Executive Officer and Regional Executive Office for EMEA at MUFG Bank, offered support for the move which aligned with the bank’s own decarbonisation goals.

Sazaki said, “We were very pleased to witness the signing of this MoU between Sasol and ITOCHU – not only because both companies are our important and long-standing clients, but also because the envisaged cooperation deals with green hydrogen and ammonia, which we believe will play a key role in establishing a low-carbon society.”