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.