CAPE TOWN (miningweekly.com) – The launch of a pilot initiative to produce feedstock for renewable diesel in South Africa was announced on day two of the Investing in African Mining Indaba taking place in Cape Town.

The launch, which has far-reaching promise owing to the high status of the participants, has taken the form of a joint development agreement, which was entered into on Tuesday, February 4.

The corporations involved are:

• South Africa’s long-standing hydrocarbons-based synthetic fuels producer Sasol;
• the London- and Johannesburg-listed Anglo American; and
• the iconic Anglo group diamond pioneer De Beers.

This timely and far-reaching pact has in its sights the establishment of a competitive climate-friendly South African renewable fuels value chain of considerable substance.

Being assessed is the technical and commercial viability of renewable diesel feedstock production at scale, with solaris and moringa plantations generating vegetable oil.

This is taking place amid Sasol’s existing assets being able to process a variety of feedstocks.

Importantly, this is enabling the partnership to produce vegetable oil-based renewable diesel quicker than greenfield projects and at lower costs.

Renewable diesel is transformative in that it meets the technical standards of conventional diesel while significantly reducing greenhouse-gas (GHG) emissions.

“Our customers can  use it as a ‘drop-in’ fuel in their existing equipment and machinery to meet their GHG reduction commitments,” Sasol business building, strategy and technology  executive VP Dr Sarushen Pillay outlined at the signing ceremony covered by Mining Weekly.

Partnering with Anglo, Sasol is investigating the development of a local and cost-effective supply chain for sustainable feedstock, utilising vegetable oil to produce renewable diesel in its facilities, as the partnership advances towards a greener future.

“As we innovate for a better world, Sasol’s ambition is clear — to help our customers navigate the energy transition while delivering high-quality, sustainable solutions for a low-carbon future," Pillay added.

Anglo projects and development director Alison Atkinson highlighted the strengthening role that renewable diesel will play in the group’s commitment to reducing scope 1, 2, and 3 GHG emissions by 2040.

“It’s 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 explained.

The initiative is said to align with De Beers’ Origins sustainable practices and innovation strategy while also aligning with the diamond company’s aim of replacing fossil fuel, which is a critical element of the 2030 decarbonisation goals.

“Prefeasibility studies have been approved, and renewable diesel production trials have been initiated within De Beers mining operations and host communities,” Atkinson added.

Although renewable diesel production in South Africa is not yet at a commercial scale, recent market engagements indicate that the country’s renewable fuels market is promising, driven by end-customer demands and their decarbonisation targets.  

Old mine sites will be repurposed for farming of the crops required for renewable diesel.

As stated by Anglo CEO Duncan Wanblad on Monday, Anglo is intent on continuing to leverage its global status in mining, processing, and sustainability to support inclusive South African economic growth more broadly.

“South Africa will continue as our platform to drive our strategic agenda across Southern Africa, where we believe we have a rare set of capabilities to bring to bear for the right opportunities. South Africa’s success is deeply intertwined with our own,” Wanblad added.

The often-repeated need for bold partnerships to strengthen the South Africa economy is reflected in this very promising renewable diesel partnership.