Sasol, Anglo American and De Beers have entered into a joint development agreement (JDA) to pilot the production of feedstock for renewable diesel. This is an important initiative for both companies as they endeavour to establish the value chain for renewable fuels in South Africa.
Signed against the backdrop of the Investing in African Mining Indaba in Cape Town, the objective of the JDA is to assess the technical and commercial viability of feedstock production, starting with Solaris and Moringa plantations to generate vegetable oil. Sasol’s existing assets can take a variety of feedstocks, enabling them to produce renewable diesel using vegetable oil quicker than greenfield projects and at lower costs.
Dr Sarushen Pillay, executive vice president of Sasol’s business building, strategy and technology portfolio, says: ‘Renewable diesel is transformative. It meets the technical standards of conventional diesel while significantly reducing greenhouse gas emissions. Our customers can therefore, use it as a ‘drop-in’ fuel in their existing equipment and machinery to meet their greenhouse gas reduction commitments. Partnering with Anglo American, we’re investigating the development of a local and cost-effective supply chain for sustainable feedstock, utilising vegetable oil to produce renewable diesel in our facilities. As we innovate for a better world, Sasol’s ambition is clear — to help our customers navigate the energy transition while delivering high-quality, sustainable solutions for a low-carbon future.’
Although renewable diesel production in South Africa is not yet at a commercial scale, recent market engagements indicate that the country’s renewable fuels market is promising, driven by end customer demands and their decarbonisation targets.
