CompaniesPREMIUM

Sasol, Anglo and De Beers team up on renewables

The deal reflects Anglo and Sasol’s broader mission to establish the value chain for renewable fuels in SA

Anglo American CEO Duncan Wanblad speaks during the Investing in African Mining Indaba 2023 conference in Cape Town in this file photo.  Picture: SHELLEY CHRISTIANS/REUTERS
Anglo American CEO Duncan Wanblad speaks during the Investing in African Mining Indaba 2023 conference in Cape Town in this file photo. Picture: SHELLEY CHRISTIANS/REUTERS

The second day of this year’s mining indaba began with the signing of a joint development agreement (JDA) between two of SA’s largest mining and energy groups — Anglo American and Sasol — to promote renewable diesel production using degraded mines owned by Anglo subsidiary De Beers.

The trio aims to pilot the production of feedstock, starting with solaris — a nicotine-free variety of tobacco — and moringa plantations to create vegetable oil, which can be used to produce renewable diesel using Sasol’s existing technology and assets.

The crops will be planted on degraded mine land using water from these mines, allowing the firms to advance their environmental targets by promoting mine rehabilitation while reducing their greenhouse gas emissions through the use of renewable diesel.

The JDA reflects Anglo and Sasol’s broader mission to establish a value chain for renewable fuels in SA, Sasol said in a statement.

“Renewable diesel is transformative. It meets the technical standards of conventional diesel while significantly reducing greenhouse gas emissions,” said executive vice-president of Sasol’s business building, strategy and technology portfolio, Sarushen Pillay.

Pillay said Sasol’s customers could therefore use renewable diesel as a “drop-in” fuel for existing equipment and machinery, to meet their emissions reduction commitments.

Renewable diesel production is not yet at a commercial scale in SA, but Sasol said recent market engagements pointed to a promising renewable fuels market emerging in the country.

Anglo director of projects and development Alison Atkinson said the JDA would strengthen Anglo’s commitment to reducing scope 1, 2 and 3 emissions by 2040. The initiative also aligns with De Beers’ strategy to replace fossil fuels as part of its 2030 decarbonisation goals, she said.

“It is an innovation that contributes to our sustainability journey as a business and our quest to maintain a healthy environment by creating carbon neutral operations,” Atkinson said.

“Pre-feasibility studies have been approved, and renewable diesel production trials have been initiated within De Beers mining operations and host communities,” she said.

websterj@businesslive.co.za

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