Sasol and Envision Energy advance study of potential green hydrogen system in South Africa

South Africa’s chemicals and energy group Sasol (JSE:SOL, NYSE:SSL) and China’s green technology company Envision Energy are studying the potential development of a green hydrogen system at Sasol’s Sasolburg operations in South Africa. The project comes as Sasol explores ways to reduce the carbon intensity of its energy and chemicals operations.

Envision Energy announced the collaboration in a press release on August 5, saying the design study would assess how renewable power, battery storage and electrolyser technologies could be integrated to produce green hydrogen. Potential applications include eMethanol and sustainable aviation fuel (eSAF).

The collaboration was highlighted during a visit by Electricity and Energy Minister Kgosientsho Ramokgopa to Envision’s Hydrogen Net Zero Industrial Park in Chifeng, Inner Mongolia, during the South Africa-China Energy Investment Conference.

The study will examine how renewable generation, energy storage and electrolysers can be combined to optimise hydrogen production according to energy availability, market conditions and operating requirements. Envision will contribute expertise in renewable energy, battery storage, green hydrogen and AI-based energy management.

The study is expected to be completed later this year and will provide technical and commercial information that could guide future investment decisions, Envision said. The study does not commit the companies to building a commercial green hydrogen facility but is intended to assess the technical and economic case for future investment.

“Green hydrogen will play a critical role in reshaping hard-to-abate industries and creating new pathways for sustainable growth,” said Kane Xu, Envision Energy’s senior vice president and president of its international product line. “Through AI-powered energy infrastructure and innovative technologies across renewables, storage and green hydrogen, Envision is working with global partners like Sasol to pioneer future energy systems that are infinite, intelligent and inexpensive, accelerating industrial transformation and creating new opportunities for industries and communities worldwide.”

Sasol is assessing how its existing industrial capabilities and infrastructure could support the development while also considering technologies that could help advance its energy transition and open new market opportunities.

Danie Cronje, Sasol’s senior vice president of Business Building, said the study would help assess whether integrated renewable power, storage and electrolyser technologies could support cost-competitive green hydrogen production at Sasolburg.

“By drawing on leading global expertise, we can evaluate how these technologies may contribute to future lower-carbon fuel and chemical value chains, while building on Sasol's existing industrial capabilities,” he added.