South African IOL recently reported that an energy application lodged with the energy regulator shows that ArcelorMittal South Africa is looking to restart its operations in Saldanha Bay. As per report “AMSA might reopen the facility using hydrogen made from renewable energy to make low-carbon iron at the facility and is in talks with Eskom regarding a three-year electricity supply deal. The reopening will result in 260 people being employed by AMSA and another 375 who will be on site contractors.” In its application, National Energy Regulator of South Africa said that Amsa has approached Transnet, Eskom, the Western Cape Government and the Saldanha Bay Municipality for assistance with the restart of the Saldanha Works operations converting from the costly iron ore/coke steel making to an electric scrap-melting model. AMSA Group Manager Tami Didiza said “Amsa is working on its plan to achieve ambitious carbon reduction targets for 2030 and 2050. The journey will involve close collaboration with several stakeholders, including local and international public and private sector participants. AMSA has recently signed joint development agreement with Sasol, which will advance studies into two potential projects.” He said “The first one is the Saldanha green hydrogen and derivatives study which will explore the region’s potential as an export hub for green hydrogen and derivatives, as well as green steel production; and the Vaal carbon capture and utilisation study. The latter is to use renewable electricity and green hydrogen to convert captured carbon from Amsa’s Vanderbijlpark steel plant into sustainable fuels and chemicals.” He added “With the appropriate support, the restart of Saldanha Works as an early supplier of green-directly-reduced iron to the international market is a very exciting prospect. However, it is too early to share the specifics as these discussions are ongoing.” Amsa closed its steel plant in Saldanha two years ago, partly because electricity costs got too high.
South African IOL recently reported that an energy application lodged with the energy regulator shows that ArcelorMittal South Africa is looking to restart its operations in Saldanha Bay. As per report “AMSA might reopen the facility using hydrogen made from renewable energy to make low-carbon iron at the facility and is in talks with Eskom regarding a three-year electricity supply deal. The reopening will result in 260 people being employed by AMSA and another 375 who will be on site contractors.” In its application, National Energy Regulator of South Africa said that Amsa has approached Transnet, Eskom, the Western Cape Government and the Saldanha Bay Municipality for assistance with the restart of the Saldanha Works operations converting from the costly iron ore/coke steel making to an electric scrap-melting model. AMSA Group Manager Tami Didiza said “Amsa is working on its plan to achieve ambitious carbon reduction targets for 2030 and 2050. The journey will involve close collaboration with several stakeholders, including local and international public and private sector participants. AMSA has recently signed joint development agreement with Sasol, which will advance studies into two potential projects.” He said “The first one is the Saldanha green hydrogen and derivatives study which will explore the region’s potential as an export hub for green hydrogen and derivatives, as well as green steel production; and the Vaal carbon capture and utilisation study. The latter is to use renewable electricity and green hydrogen to convert captured carbon from Amsa’s Vanderbijlpark steel plant into sustainable fuels and chemicals.” He added “With the appropriate support, the restart of Saldanha Works as an early supplier of green-directly-reduced iron to the international market is a very exciting prospect. However, it is too early to share the specifics as these discussions are ongoing.” Amsa closed its steel plant in Saldanha two years ago, partly because electricity costs got too high.
