Sasol and ITOCHU Corporation have signed a Memorandum of Understanding (MoU) to 
jointly study and develop the market and supply chain for green ammonia with a 
focus on its use as bunkering fuel and for power generation. The parties will 
also evaluate ITOCHU's potential involvement and participation in Sasol's green 
ammonia export-orientated project(s), including product offtake as well as 
financial support from Japan for studies and grants relating to green ammonia 
projects in South Africa.

The MoU has been signed during the Tokyo International Conference on African 
Development (TICAD 8) in Tunisia, which is a forum to advance Japan-Africa   
sustainable development on the continent. MUFG Bank Ltd, one of the largest 
Financial Institutions in the world, and a market leader in sustainable 
financing solutions, witnessed the signing of the MoU.

Green ammonia is produced from green hydrogen, which in turn is produced from 
renewable electricity (solar and wind) via an electrolysis process. It is a key 
enabler to achieving net-zero in manufacturing fertilizers, in the marine 
sector where it can be used as a zero-carbon bunkering fuel, and for co-firing 
in thermal power generation. Green ammonia is an excellent energy carrier 
especially over long-distances and can be easily transported. The product can 
also be "cracked" back to hydrogen gas for further applications.

Sasol is advancing a number of green hydrogen studies and projects in South 
Africa, such as in Boegoebaai in the Northern Cape province, that include green 
ammonia production at scale for export. Given South Africa's excellent solar, 
wind and precious metals resources, the country is poised to become a global 
hub for green hydrogen and its derivatives, such as ammonia and sustainable 
aviation fuels.

Hydrogen and ammonia play an important role in the Japanese Green Growth 
Strategy and are positioned as "new resources" with significant potential to 
reduce the country's reliance on carbon-intensive fossil fuels, such as coal 
and oil. Japan is expected to be a large importer of green ammonia in the 
future.

Sasol Executive Vice President: Energy Business, Priscillah Mabelane, said that 
Sasol believes that strategic partnerships and collaboration are the key to 
develop large scale green hydrogen projects, and that this emerging sector can 
play an important role in enabling a just energy transition in South Africa.

"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."

ITOCHU has been strengthening initiatives for the establishment of production 
and supply chains for low-carbon ammonia, the development of ammonia-fueled 
ships and establishment of an international value chain for ammonia as a fuel 
in the marine sector and its use for fertilizer-related applications as well as 
in the power-generation sector. Using the MoU as a platform, ITOCHU, together 
with Sasol, will jointly study supply chains and markets for green ammonia, and 
assess other partnership models related to green hydrogen and ammonia 
production and exports from South Africa.

MUFG Bank, Ltd (MUFG) witnessed the signing of the MoU.  Mr Takanori Sazaki – 
Senior Executive Officer, Regional Executive Officer EMEA said: "MUFG is 
committed to empowering a brighter future and are proactive in addressing 
climate change and environmental protection issues. As the first Japanese Bank 
to declare carbon neutrality and participate in the UN-led Net Zero Banking 
Alliance (NZBA), this MoU aligns with our commitment of achieving Carbon 
Neutrality by 2050. 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".

Issued by:

Alex Anderson, Senior Manager: Group Media Relations and External Relations
Mobile: +27 (0) 71 600 9605; Email: alex.anderson@sasol.com

Matebello Motloung, Manager: Group Media Relations
Mobile: +27 (0) 82 773 9457; Email: matebello.motloung@sasol.com 

About Sasol:

Sasol is a global chemicals and energy company. We harness our knowledge and 
expertise to integrate sophisticated technologies and processes into 
world-scale operating facilities.
We strive to safely and sustainably source, produce and market a range of 
high-quality products globally.
Please visit www.sasol.com for more information.

About Sasol's Information Privacy Policy:

We wish to inform you about the processing of your Personal Information by 
Sasol South Africa Limited and your rights under applicable data protection 
law, as interpreted and included in Sasol Information Privacy Policy.

Within our company, only Sasol Group Media Relations will receive your Personal 
Information to fulfil the purpose of maintaining the relationship with the 
receiver in his/her capacity as a member of the media. You have the right to 
request for the correction or deletion of your Personal Information stored by 
us at address: Sasol Place, 50 Katherine Street, Sandton in Johannesburg. You 
also have a right to restrict the processing of your Information. To exercise 
your privacy rights or find out more about Information Privacy Policy, kindly 
contact our Privacy Office on: privacy@sasol.com

SOURCE: Sasol