Recently, Far East Energy and global energy and chemical giant Sasol officially signed a cooperation agreement to jointly promote the design and research of green hydrogen energy systems at the Sasolburg production base in South Africa. Unlike many previous green hydrogen projects that remained on the blueprint, this collaboration will directly integrate green hydrogen into Sasol's existing chemical and fuel industry system. It is not just a paper export hydrogen project, but an attempt to test the cost ledger of green hydrogen with real industrial demand. Farview provides wind solar hydrogen storage and AI energy management capabilities, while Sasol offers industrial sites, chemical industry experience, and potential purchase scenarios. Whether both parties can move from research to investment depends on whether the four accounts of cost, load, regulation, and product purchase can be established simultaneously.

Access to existing industrial systems

The significance of Sasolburg lies in having real industrial needs and existing chemical infrastructure. If green hydrogen is only built for export, it must simultaneously address hydrogen production, conversion, storage and transportation, ports, shipping, and overseas buyer certification; If we first enter the existing fuel and chemical system, the question of who to sell hydrogen to can be transformed into how to replace existing raw materials and how to realize low-carbon attributes as product premiums. The study will evaluate the collaborative operation of renewable electricity, energy storage, electrolysis cells, and AI energy management, with potential applications including green methanol and sustainable aviation fuels, expected to be completed by 2026.

Calculate the cost of one kilogram of hydrogen

There is currently no publicly traded green hydrogen spot price in South Africa. According to the commonly used technical range of the International Energy Agency, electrolysis to produce 1 kilogram of hydrogen typically requires 50 to 55 kilowatt hours of electricity. If the full caliber price of renewable electricity is $30 per megawatt hour, the cost of electricity alone would be $1.50 to $1.65, approximately RMB 10.7 to 11.7; If the electricity price rises to $50, the electricity cost will reach $2.50 to $2.75. This does not include depreciation, storage and transportation, operation and maintenance, and financing of electrolytic cells. Energy storage is placed in an equally important position as electrolytic cells, as it can reduce power waste, optimize charging and discharging, improve system availability, and ensure stable output of electrolytic cells under smoother loads. Keywords: New Energy News Network

Financing options are the test questions

South African coal-fired power still dominates, and green hydrogen projects will find it difficult to gain high premium market recognition if they cannot prove the addition of renewable energy supply and clear carbon accounting; If the wind and solar energy storage and transmission are completely self built, the capital expenditure and construction period will significantly increase. The real test of Far East is not to provide an electrolytic cell or a wind power order, but to make wind turbines, photovoltaics, energy storage, hydrogen energy equipment and software scheduling into a comprehensive financing solution for industrial customers. If the research ultimately leads to investment, Farsight will obtain certified samples for entering the decarbonization and green fuel chains in southern Africa's industry; If it cannot be converted into a financing project, it will also inform the industry that the resource endowment is not sufficient to automatically convert it into green hydrogen orders.Editor/Gao Xue