New and cheaper type of diesel coming to South Africa

A new project to make renewable diesel in South Africa was announced at the Investing in African Mining Indaba in Cape Town.

Major companies like Sasol, Anglo American, and De Beers are working together on the project, which aims to help the environment and lower the cost of fuel.

The project, announced on Tuesday (4 February) through a joint development agreement, aims to use special plants like nicotine-free tobacco (Solaris) and Moringa to produce renewable diesel.

These crops will be cultivated on old, unused mining land, repurposing previously unproductive areas for sustainable agriculture.

The seed oil extracted from these plants will be processed into vegetable oil, which, through hydrogenation and refining, will be transformed into renewable diesel.

Danie Cronje of Sasol described the project, which was undertaken in collaboration with Anglo American and De Beers, as a milestone in the development of sustainable, low-carbon fuels.

He said that a notable advantage of this renewable diesel is its compatibility with existing diesel engines, known as “drop-in” fuel.

This means it mirrors the chemical properties of traditional diesel, allowing it to be used seamlessly in current engines without the need for modifications to cars, trucks, or equipment.

The initiative promises not only environmental benefits but also economic ones.

The project minimises the initial capital investments needed to get started by using degraded mining land and existing processing infrastructure.

The current focus is on planting, fertilisation, and standard operational activities, with significant capital expenditure anticipated only as the project scales to commercial levels.

Sarushen Pillay, Sasol’s Executive Vice President of Business Building, Strategy, and Technology, said that renewable diesel is great because it meets the same quality standards as regular diesel but produces less pollution.

This means companies can lower their greenhouse gas emissions without having to buy new equipment.

He noted that customers could achieve their GHG reduction targets without altering their existing machinery, positioning renewable diesel as a transformative solution in the energy sector.

Anglo American’s Projects and Development Director, Alison Atkinson, underscored the role of renewable diesel in supporting the company’s ambitious goal to cut scope 1, 2, and 3 GHG emissions by 2040.

She described the initiative as a critical component of Anglo American’s sustainability strategy, contributing to carbon-neutral operations and environmental stewardship.

For De Beers, the project is an integral part of the company’s 2030 decarbonisation goals, with pre-feasibility studies already approved and renewable diesel production trials underway within its mining operations and host communities.

Although the project is still in its pilot phase, the involved companies are optimistic about scaling it up within the next year or two.

The immediate goal is to gather data on crop yields under the challenging conditions of degraded mining land using mining water.

By turning old mining sites into farms, using existing equipment, and making renewable diesel that costs less, Sasol, Anglo American, and De Beers hope to lead the way for cleaner and cheaper energy in South Africa.