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Sasol builds R1.8bn gas power plant

Johannesburg - Sasol [JSE:SOL] is building a R1.8bn plant in Sasolburg to produce electricity from natural gas to supply its own needs, the energy and chemicals company said on Wednesday.

"The 140 megawatt Gas Engine Power Plant Project will be the largest power plant using gas engines installed in South Africa," Sasol said in a statement.

The plant will provide power to Sasol, allowing it to be more self-sufficient in its electricity requirements, said Henri Loubser, managing director of Sasol New Energy.

"The project will make a significant contribution to improving the country's current electricity supply situation by freeing up electricity that would otherwise have to be imported from the national grid," he said.

Construction on the plant would start this month and it was expected to start producing electricity by the end of 2012.

The project is in line with Sasol's aim to increase the energy efficiency of its South African utilities by 15% per unit of production by 2015 compared to 2000.

"Producing electricity from natural gas rather than coal results in much fewer emissions, and this project will produce 50% less greenhouse gases compared to a conventional coal-fired power station of equivalent capacity," said Loubser.

 
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