14.03.2008

Sasol to spend 40 million dollars on coal-to-liquids feasibility study


The Sasol board has committed about 40 million dollars to the feasibility studies for the proposed new Mafutha 10000 tons per day coal-to-liquids plant in South Africa.

"We believe that with the current increases in liquid fuel demand in the market, there is a space in the market for a project the size of Mafutha," stated Sasol executive director Benny Mokaba, who said that the project studies were on track and making "good progress".

No clarity was offered on the location of the new plant, and coal-rich sites in Free State province, as well as the Waterberg region in Limpopo province were said to be under consideration as a part of the feasibility studies.

Sasol CEO Pat Davies indicated that the work currently being done with regard to project Mafutha was "preliminary work, both technical, commercial, sourcing feedstocks, and ensuring we have the right infrastructure".

Emphasising the synfuels giant's commitment to the environment and sustainability, Davies also stated that the plant would be built ensuring it was carbon capture and storage ‘ready', however, "as for the percentage of carbon, and what we do with the carbon - that is still a part of the feasibility study," he added.

With regard to the electricity shortage experienced in South Africa, Davies stated that Sasol was working with Eskom and the government "to see what else we can bring to bear using our technology and the feedstocks that we have to alleviate the situation on energy".
 
He did, however, reiterate that the company's primary role was "to make sure that we keep the country, particularly inland, ‘wet' as far as liquid fuels are concerned".

Going forward, Sasol believed that liquid fuel supplies would remain reasonably tight in the inland regions, until there were new pipelines built from the coast into the inland regions, and said that the company was doing what it could to "improve production rates inland to compensate for that production tightness".

Sasol Synfuels in Secunda, Picture: Govan Mbeki
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