Algerian State energy company Sonatrach is teaming up with South Africa's petrochemical group Sasol on a project in Sicily to produce "low carbon" hydrogen and synthetic natural gas (syngas) as well as to capture and reuse carbon dioxide.
"The 'low carbon' hydrogen and syngas, produced with energy from renewable sources, will be used to decarbonise processes at the two production sites and can also be used to meet potential further needs in the area," the two energy companies said on Wednesday.
The companies, which both have plants in Sicily, did not mention any financial details in their statement.
The broader aim of the "Hybla" project, which the companies have just presented to local authorities, is to create a so-called "Hydrogen Valley in Sicily", which they said would have the potential to be among the largest in Italy.
The project envisages the production of 7 800 t/y of "low carbon" hydrogen and 25 000 t/y of "low carbon" syngas.
Under the plan, Sasol Italy and Sonatrach Raffineria Italiana will also be able to capture and reuse carbon dioxide, cutting greenhouse gas emissions by 120 000 t/y, they added.
Sasol, the world's biggest producer of fuel products and chemicals from coal is moving away from fossil fuels as part of its plan to achieve net-zero carbon emissions by 2050.