Sasol's R1.9 billion gas engine power plant in Sasolburg has gone live and began producing electricity, for the first time today, as part of the facility's test phase. This marks a significant step for the international energy and chemical company in boosting its own power generation capacity, while reducing its carbon emissions.

The plant, using natural gas as feedstock, has an operating capacity of 140 megawatts (MW) and is the largest power plant, using gas engines, installed in South Africa.

“This is a significant milestone in terms of our energy efficiency and the way in which our utilities operate. This investment will reduce our CO2 emissions, while also easing our load on the national grid for the benefit of our communities,” said Henri Loubser, Managing Director, Sasol New Energy.

The facility will be fully commissioned and is expected to reach full capacity before the end of December 2012, one quarter ahead of schedule.

Sasol aims to reduce its emissions intensity by 15% in all its operations off a 2005 baseline by 2020, measured as CO2 equivalent per ton product. The state-of-the-art combined heat and power facility will replace coal-fired power generation, reducing Sasol’s South African greenhouse gas emissions by approximately one million tons per annum. It will also improve air quality through reductions in nitrogen oxide, sulphur oxide and particulate emissions.

Sasol plans to increase its power generation capacity to 60% by the 2013 calendar year.

Sasol is a signatory to the South African Energy Efficiency Accord, an agreement between government and industry leaders to take voluntary measures to increase energy efficiency.

“Sasol partners with government to deliver solutions and this latest investment is part of our significant capital expenditure programme in South Africa,” said Loubser.

Sasol increased its capital expenditure in South Africa by 14% in the past financial year to R18.8 billion, which represents nearly two thirds of Sasol’s total capital expenditure.

Henri Loubser, MD Sasol New Energy (centre), flanked by the project team

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About Sasol:

Committed to excellence in all we do, Sasol is an international integrated energy and chemical company that leverages the talent and expertise of our more than 34 000 people working in 38 countries. We develop and commercialise technologies, and build and operate world-scale facilities, to produce a range of product streams, including liquid fuels, chemicals and electricity.

While continuing to support our home-base of South Africa, Sasol is expanding internationally based on a unique value proposition, which links our diverse businesses into an integrated value chain supported by top-class functions.