South Africa’s biggest petrol company selling jet fuel for travel to Antarctica

Sasol has begun selling sustainable aviation fuel to a company that organises luxury trips to Antarctica, tapping into a new market that may help reduce its environmental footprint.

The Johannesburg-based firm, which is the world’s biggest producer of fuel and chemicals from coal and ranks as one of South Africa’s biggest greenhouse-gas emitters, is making the sustainable aviation fuel, or SAF, from used cooking oil at its Natref refinery.

White Desert’s offerings include one-day trips from Cape Town that cost $16,500 (about R270,000) and feature attractions such as rappelling down a glacier and a champagne toast in an ice bar.

Alternatively, it offers a seven-day itinerary that includes a visit to Antarctica’s Blue Rivers for up to $120,000 (nearly R2 million), and has been signed up as a first customer.

White Desert began using SAF in 2021, according to its website.

SAF is a low-carbon fuel alternative made from non-petroleum feedstocks that help cut air pollution from air travel.

Aviation accounts for 2% of all carbon dioxide emissions and 12% of the gas from transportation, according to the US Department of Energy.

Production of SAF is a spoke in Sasol’s strategy to eventually move away from fossil fuels, though its near-term focus has been on increasing output at the Secunda manufacturing hub.

Finding an offtaker for the product demonstrates Sasol’s capability to make the fuel in South Africa, said Danie Cronje, senior vice president for business building, strategy and technology.

“This we see as a very first practical commercial step.”

The market for SAF is currently tiny, accounting for about 0.6% of jet fuel demand last year. Producers and consumers of SAF globally expect prices of the fuel to increase as blending mandates ramp up in Europe and new policies come into effect in other regions, BloombergNEF analysts said in a July report.

Sasol can produce as much as 2 million litres of SAF annually at Natref, with the capability to increase to 100 million litres a year by 2030, according to Cronje.

That could double after certification is achieved at the Secunda plant, which uses a different manufacturing process.

For now, supplying White Desert is “a bit seasonal”, and even though SAF prices can be two to three times higher than conventional aviation fuel, Sasol has seen interest from other potential customers and is finalising commercial terms with them, Cronje said.