Sasol and CEF Considering South African Biodiesel Plant
09 February 2006
Sasol, the South African energy company and world’s largest Coal-to-Liquids (CTL) producer, and the Central Energy Fund (CEF) signed a Memorandum of Understanding (MoU) to conduct a feasibility study for a 100,000-tonne/year soy biodiesel plant in South Africa.
The study—due to be completed by the end of the year—will investigate the viability of such a venture before an investment is made. The feasibility study will also look at production facility location options.
A pre-feasibility study conducted over the last few years by Sasol in close cooperation with the CEF indicated potential for commercial-scale production of this renewable energy source if supported by appropriate fiscal incentives.
Sasol recognizes the importance of renewable energy as part of our sustainability and we support government’s commitment to diversify the energy mix in South Africa. International experience has shown that many socio-economic benefits accrue from biofuel production, including job creation, foreign exchange savings, and strengthening of the rural agricultural economy.
—Sasol Nitro managing director Bernard Klingenberg
The proposed biodiesel plant will require more than 500,000 tonnes of soya beans to produce 100,000 tonnes (about 30 million gallons US) of biodiesel per year.
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