Multiple companies are working on a plan to produce a more affordable diesel for South Africa.
This includes conglomerates like Sasol, Anglo-American, and De Beers, which are collaborating to create a renewable diesel that is both cheaper for the consumer and better for the environment.
A better solution
The joint development was announced in early February and aims to use special plants such as nicotine-free tobacco (Solaris) and Moringa to produce renewable diesel.
These plants were chosen because they are low maintenance, do not require good soil, and have few other uses, unlike food crops like maize.
The plan is to plant and cultivate these crops on old mining lands, converting previously unused areas into profitable and sustainable agricultural ventures that could make up to 400 million litres of diesel.
The crops are harvested for their seeds, which can be processed into vegetable oil before undergoing hydrogenation and refining at Sasol’s Netref facility to be converted into a form of bio-diesel.
Importantly, this fuel is compatible with existing diesel engines, making it a viable alternative to what can be found in a contemporary forecourt.
Danie Cronje, a senior vice president for market development at Sasol, explained that renewable diesel is known as a “drop-in fuel” which has the same chemical properties as traditional diesel, allowing it to be used in engines without the need for any sort of modification.
Sarushen Pillay, Sasol’s executive vice president of business, strategy, and technology, added that renewable diesel meets the same quality standards as regular fuel but produces less pollution.
It generates up to 90% fewer emissions versus petroleum-based fuels, including pollutants such as unburned hydrocarbons (HCs), carbon monoxide, sulfates, polycyclic aromatic HCs, nitrated polycyclic aromatic HCs, and particulate matter.
Another benefit of this fuel is that it will also allow companies to reduce their greenhouse gas emissions without needing to buy new, eco-friendly equipment.
The use of deserted mining land for fields means the project requires minimal capital investment to get started, and the current goal is to plant and fertilize the crops and establish a standard operational procedure.
From there, the bio-diesel development will be scaled up until it reaches a commercial level.
Anglo-American plans to use the diesel in its mining operations, but the company believes it could also be a valuable resource in the push towards lower-emissions transport, as South Africa is likely to continue relying on liquid fuels for many years even as electric vehicles become more prevalent.
Bio-diesel also costs up to 76% less than its traditional counterpart, which could lead to enormous cost-savings for both businesses and consumers.
As an estimate, regular diesel 0.005% currently retails for R20.45 per litre as of February 2025, meaning that Sasol’s renewable fuel could potentially cost as low as R4.90 per litre.
This would not only mean a lower fuel spend for households, but commercial transport costs would also see a sizeable reduction, leading to lower shelf prices for other goods.
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