The Freeport Saldanha Industrial Development Zone has an anticipated R21 billion investment pipeline which is being realised through the historic signing of the Memorandum of Understanding (MOU) between the entity and Sasol.<\/p>\n
Western Cape Premier Alan Winde and Finance and Economic Opportunities MEC Mireille Wenger welcomed a partnership announced Wednesday (19 October) between Sasol and ArcelorMittal SA to produce sustainable fuels and chemicals, as well as green steel development, through supporting the establishment of a green hydrogen (GH2) hub in Saldanha Bay.<\/p>\n
“The Western Cape Government (WCG) applauds the partnership between these two giants of industry and further welcomes the signing of the Memorandum of Understanding between Sasol and the SBIDZ, which will bring exciting energy capabilities and commercial opportunities to the province,” the local government said.<\/p>\n
“This will go a long way in promoting the fiscal independence of the entity while further making use of the significant infrastructure developments that have taken place at the Freeport to date,” said Cayla Murray, MPP – DA Western Cape spokesperson on Finance, Economic Opportunities and Tourism.<\/p>\n
Earlier this week, Sasol and ArcelorMittal launched a carbon capture, ‘green steel’ plan. During the launch, an MoU was further signed between Freeport Saldanha and Sasol to collaborate on the establishment of a green hydrogen hub.<\/p>\n
It was further revealed that the entity is conducting a feasibility study to locate this project on their land, said Murray. “Sasol and ArcelorMittal South Africa will further be studying the use and offsetting of each other\u2019s emissions, with the goal of achieving net zero carbon emissions by 2050.”<\/p>\n
The two industrialists are studying how to use the approximately 1.5 million tonnes of CO2 generated from the Vanderbijlpark Works a year. This CO2 would then be transported to Sasolburg and Ekandustria to replace the use of natural gas, said Murray.<\/p>\n
“The green economy is an exciting arena with enormous potential. It is essential that we not only recognise its potential but that we also continue to make use of the resources available to us while positioning our province as the green tech hub of Africa.”<\/p>\n
The instability of South Africa\u2019s energy supply and the doubtful sustainability of an ageing fleet of power stations has created a perfect storm necessitating the move away from Eskom and coal-reliant power to securing alternative energy options, said Brent Townes, commercial property chief operating officer for Lew Geffen Sotheby\u2019s International Realty in Cape Town.<\/p>\n
He said organisations like Freeport Saldanha are paving the way to support investors to set up manufacturing facilities in energy transition technologies and further attract energy investments to the Western Cape region.<\/p>\n
\u201cIt\u2019s become imperative that consumers have alternative options which, albeit at a higher cost initially, assures them not only of a reliable energy supply but also a much-reduced carbon footprint.<\/p>\n
\u201cAnd, with building owners facing an Eskom application at NERSA for a 32% price escalation for 2022\/23, alternative energy sources are likely become cost-efficient sooner rather than later \u2013 especially as the increase in the cost per kilowatt during the winter months will result in a double whammy as municipalities pass their inefficiencies on as well.\u201d<\/p>\n
He said that landlords can mitigate this risk by installing separate meters or even installing solar systems, but ultimately that in itself won\u2019t halt the rapidly increasing cost spiral in the overall business environment<\/p>\n
\u201cAt the end of the day, the government\u2019s change of heart from their deep reluctance to move away from coal-fired power has almost come too late as the transition is a lengthy process.<\/p>\n
\u201cThe planning cycle of any such project takes up to 24 months in consultation with all role players before the tender process can begin and then follows the design process, the construction phase, the commissioning phase and so on.”<\/p>\n
He cited “the disastrous Medupi project” which was commissioned in 2007 and initially expected to take six years to complete, but Unit 1\u2019s completion was then extended to 2017 and, to date, it\u2019s already R11 billion over budget and far from finished and Kusile has a similar timeline.<\/p>\n
\u201cOver and above the fact that these stations would be fed coal from surrounding mines and thereby deepening the carbon footprint, both still require considerable corrective work on design faults which are estimated at R28 billion.\u201d<\/p>\n
Fresh delays at Medupi and Kusile amid eye-watering costs<\/a><\/p><\/blockquote>\n