Sasol, Anglo American and De Beers have signed a joint development agreement (JDA) to establish a renewable fuels value chain in South Africa.

The agreement, formalised at the Investing in African Mining Indaba in Cape Town on February 4, aims to assess the technical and commercial feasibility of producing vegetable oil feedstock for renewable diesel, beginning with solaris and moringa plantations.

Sasol can produce renewable diesel quicker than greenfield projects and at a lower cost by using its existing facilities, the company said. While renewable diesel production in South Africa is not yet commercially available, recent engagements indicate that the market is promising. “Renewable diesel is transformative. It meets the technical standards of conventional diesel while significantly reducing greenhouse gas emissions. Our customers can, therefore, use it as a ‘drop-in’ fuel in their existing equipment and machinery to meet their greenhouse gas reduction commitments,” Sarushen Pillay, Executive Vice President of Sasol’s Business Building, Strategy and Technology portfolio, said at the signing ceremony.

As part of the project, De Beers will provide more than 20 hectares of land for feedstock trials in Blouberg, Messina and Marble Hall, Limpopo, and at the Voorspoed mine closure site in the Free State. “This is an important initiative to strengthen our commitment to reducing our greenhouse gas emissions by 2040. 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,” said Alison Atkinson, Anglo American’s Projects and Development Director.