Co-firing into Majuba Power Station
10 June 2013 - Sasol New Energy and Eskom have signed a research agreement to jointly explore the full value chain of underground coal gasification (UCG) technology development in South Africa. Photos The agreement includes knowledge sharing and aims at research cooperation between the two parties in evaluating the UCG technology. UCG is a coal to synthesis gas technology that uses air or oxygen to gasify coal in the coal deposit underground through a series of injection and extraction wells. Eskom initiated their UCG technology development in 2002 and successfully piloted it for 5 years. The results proved that the technology works and that it is able to efficiently extract the energy from complex, poor quality coal resources. The next step is to improve and then prove the quality of the gas. Both Sasol and Eskom have a licensing agreement with technology partner, Ergo Exergy Technologies Inc. (Ergo Exergy) of Canada. Ergo Exergy’s εUCGTM technology has been the basis for the success of three UCG projects in the past few years. These projects include the Huntly West UCG project in New Zealand developed by Solid Energy, Linc Energy’s initial Chinchilla UCG project in Australia and Eskom’s Majuba UCG pilot project in South Africa. The εUCGTM technology is also being applied in the development of commercial UCG based energy projects in Canada, the United States (US), Australia, New Zealand, India, China and other countries. “We are excited about UCG as a technology for Sasol and specifically in the South African environment. UCG has the potential to utilise coal that is not minable through conventional mining technologies,” said Henri Loubser, Managing Director, Sasol New Energy. “Eskom is proud of its role as a global leader in this technology which we believe has huge potential to produce economic, social and environmental returns. At the same time this is not a project we can execute alone and partnerships such as the one announced today will help us maximise the benefits to South Africa,” said Dr Steve Lennon, Group Executive (Sustainability) at Eskom. Coal is an essential component of the global and South African energy mix and will be for decades to come. UCG, as a mining method, has the potential to unlock strategic coal resources in a future carbon-constrained world. Eskom estimates that UCG could more than double the current recoverable coal reserves in South Africa. Ends About Eskom: Eskom’s purpose is to provide sustainable electricity solutions to grow the economy and improve the quality of life of the people of South Africa and in the region. Eskom generates approximately 95% of the electricity used in South Africa and approximately 45% of the electricity used in Africa. Eskom generates, transmits and distributes electricity to industrial, mining, commercial, agricultural and residential customers and redistributors. Additional power stations and major power lines are being built to meet rising electricity demand in South Africa. Eskom will continue to focus on improving and strengthening its core business of electricity generation, transmission, trading and distribution. About Eskom Sustainability Division: The Sustainability Division’s mandate is to deliver effective and exciting solutions and decision support that enable sustainable business performance and growing stakeholder confidence and contributes to the transformation of Eskom and South Africa. This includes: About Sasol: Committed to excellence in all we do, Sasol is an international integrated energy and chemicals 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. About Sasol New Energy: Sasol New Energy (SNE) was created to focus on developing options and technologies for Sasol to utilise in a carbon- and water-constrained world. To reduce production of carbon dioxide (CO2) in our operations and integrate new technologies into our current processes, SNE is exploring renewable and lower-carbon energy options such as solar and wind power, as well as hydroelectric, clean coal and natural gas-based power opportunities.
Dr Steve Lennon, Group Executive (Sustainability) at Eskom
and Henri Loubser, Managing Director, Sasol New Energy
