ArcelorMittal ( NYSE: MT ) and Sasol ( NYSE: SSL ) said Tuesday they will collaborate on research into using green hydrogen for carbon capture technology and steel production.
Sasol ( SSL ) is the world's biggest producer of fuel products and chemicals from coal, and ArcelorMittal South Africa ( MT ) is Africa's biggest steel producer; both companies are targeting net zero carbon emissions by 2050.
Sasol ( SSL ) said the companies plan to jointly advance a green hydrogen and derivatives study on the Saldanha region's potential as an export hub for green hydrogen and derivatives, as well as green steel production.
The companies plan to study the use of renewable electricity and green hydrogen to convert captured carbon from ArcelorMittal's ( MT ) Vanderbijlpark steel plant into sustainable fuels and chemicals.
The initiatives could result in ArcelorMittal South Africa ( MT ) becoming Africa's first green flat steel producer using green hydrogen from the Saldanha works, which are currently under care and maintenance, while also reducing the carbon footprint of its flagship Vanderbijlpark works.
Sasol ( SSL ) is "an undervalued play on the oil price upcycle," JP Research writes in an analysis posted on Seeking Alpha .
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ArcelorMittal, Sasol to jointly explore green hydrogen for steel production