ArcelorMittal South Africa (AMSA) is embarking on an ambitious exploration of green hydrogen and direct reduced iron (gHDRI) production at its currently dormant Saldanha Steel Works located in the Western Cape. This strategic move is poised to unlock new avenues for sustainable industrial processes.
In pursuit of this vision, AMSA has signed a memorandum of understanding with an undisclosed “developer of transformational energy solutions.” The primary objective of this collaboration is to examine the viability of utilizing green hydrogen within the Midrex process at the Saldanha Works to manufacture gHDRI. The resultant gHDRI could serve both domestic and international markets.
South Africa's immense potential as a low-cost green hydrogen producer derives from its wealth of natural resources and the overarching objective of curbing production expenses. The Saldanha Works stands to become a substantial consumer of green hydrogen, with an estimated annual consumption of up to 104,000 tonnes in gHDRI production.
This development aligns seamlessly with ArcelorMittal's Decarbonisation Roadmap, aimed at reducing carbon intensity in its operations. It's worth noting, however, that gHDRI does not constitute an immediate component of the group's carbon reduction initiatives.