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Hive Hydrogen SA and Japan's Itochu Corporation have concluded a memorandum of cooperation to advance the company's green ammonia export project in the Coega Special Economic Zone.
The agreement, which was concluded on Friday in Gqeberha, identifies "important areas of engagement between the two companies in a bid to achieve their respective green hydrogen and ammonia business objectives in a strategic, structured, assured, and cost-effective manner".
In a statement, the two companies said the MoC provides a framework to develop "a least cost green ammonia" solution, that includes among others Itochu's potential involvement as a strategic equity investor in the project.
Both parties however noted that the development of the energy project requires further technical, regulatory, and market development, including the engagement of key supply chain members and governments.
Hive chairperson, Thulani Gcabashe, said it was a historic milestone for the project following an exciting period of engagement with Itochu in Japan.
"The huge positive impact that this project will have on Nelson Mandela Bay, the Eastern Cape, and indeed South Africa is welcomed by us all and we look forward to working together towards a meaningful offtake agreement and investment in the project by Itochu," he said.
The CEO of Itochu Africa Bloc, Shinya Ishizuka, said the MoC was another big step forward for the company in its growing leadership role in building a sustainable, clean fuel supply chain of green ammonia to the Far East and globally.
"With this collaborative development of green ammonia, ITOCHU aims to create a wide range of ammonia value chains in various existing industrial applications and will support our clients and industries in achieving low carbonisation goals."
