February 06, 2025 [Storage Terminals Magazine]- Sasol, Anglo American, and De Beers have entered into a Joint Development Agreement to pilot the production of feedstock for renewable diesel. Signed on Tuesday, 4 February 2025, the agreement represents a significant step in the effort to establish a renewable fuels value chain in South Africa.
The signing took place during the Investing in African Mining Indaba in Cape Town, with the primary objective of assessing the technical and commercial viability of feedstock production. The project will focus on Solaris and Moringa plantations to generate vegetable oil, which can be used as a feedstock for renewable diesel. Sasol’s existing infrastructure is capable of processing a range of feedstocks, allowing for the production of renewable diesel more efficiently and at a lower cost than greenfield projects
Speaking at the signing ceremony, Dr Sarushen Pillay, executive vice president of Sasol’s business building, strategy, and technology portfolio, highlighted the transformative potential of renewable diesel. He stated: “Renewable diesel meets the technical standards of conventional diesel while significantly reducing greenhouse gas emissions. Our customers can 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 are exploring the development of a local and cost-effective supply chain for sustainable feedstock, leveraging vegetable oil to produce renewable diesel at our facilities. As we innovate for a better world, Sasol remains committed to helping customers navigate the energy transition while delivering high-quality, sustainable solutions for a low-carbon future.”
Anglo American’s projects and development director, Alison Atkinson, reinforced the importance of the initiative in supporting the company’s sustainability goals. She stated: “This project strengthens our commitment to reducing greenhouse gas emissions by 2040. It represents an important innovation in our sustainability journey and our efforts to establish carbon-neutral operations.
“We collaborated closely with De Beers to develop this partnership, building on their pre-feasibility studies on renewable diesel production trials within mining operations and host communities. De Beers is also providing more than 20 hectares of land for the trial feedstock plantations in Blouberg, Messina, Marble Hall in Limpopo, and the Voorspoed mine closure site in the Free State.”
While renewable diesel production in South Africa has not yet reached commercial scale, market engagement suggests a promising future. Growing demand from end customers, coupled with increasing decarbonisation targets, is driving the development of the country’s renewable fuels market.
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