SOUTH AFRICA – Sasol, an integrated energy and chemical company, and Transnet Freight Rail (TFR) have announced a public-private partnership to improve rail transport reliability in South Africa.
Under the five-year agreement, Transnet will deliver ammonia from Sasol’s Secunda and Sasolburg facilities to the company’s customers through a dedicated fleet of 128 ammonia tankers. In turn, Sasol will fund Transnet’s maintenance and repair programme for the fleet.
“Sasol’s partnership with Transnet is an investment in South Africa’s rail infrastructure network, a critical economic driver for the country and a key business enabler for Sasol,” said Sasol Vice President for Base Chemicals, David Mokomela.
“The result will improve service to our customers and give us the transport capacity and reliability we need to respond to growing market demand. As one of South Africa’s largest companies, we are proud of this public-private partnership, which signals progress in advancing the country’s growth objectives.”
TFR and Transnet Engineering (TE), who will execute the Sasol ammonia fleet’s maintenance and repair work, expect additional revenue generation from anticipated increased haul volume and the Sasol-funded maintenance and repair work.
Transnet Freight Rail is an operating division of Transnet SOC Ltd., Transnet and owner of South Africa’s railway, ports and pipeline infrastructure.
TFR, which is Transnet’s largest Operating Division, provides the rail network infrastructure and operates rail services across major corridors to transport a broad range of bulk and general freight commodities, including mining, agricultural, manufacturing goods, bulk liquids, containerised freight and automotive units and components for export, regional and domestic markets.
Freight Rail is recognised as a heavy haul rail operator for coal and iron ore on export lines and recently extended this capability to export manganese on the iron ore and Gqeberha lines. The Freight Rail network and rail services provide strategic links between ports, freight terminals and production hubs.
Sasol partners Air Liquide
Meanwhile, Sasol has partnered with French industrial gasses company Air Liquide to sign power purchase agreements (PPAs) with Enel Green Power for the long term supply of an additional capacity of 110 MW of renewable power to Sasol’s Secunda site in South Africa.
This is the fourth set of PPAs signed by Air Liquide and Sasol after those announced in 2023, the companies said. Together, these PPAs represent a total renewable power capacity of around 690 MW.
For Air Liquide, these contracts will represent an annual reduction in its CO2 emissions of approximately 1.2 million t, and contribute to its targeted reduction by 30% to 40% of the CO2 emissions associated with oxygen production in Secunda by 2031.
As part of this agreement, Enel Green Power will create a local company which will build a wind farm located in the Eastern Cape province. This renewable energy production facility is scheduled to be operational by 2026.
Air Liquide acquired Sasol’s 16 oxygen production units in Secunda and has been operating them since June 2021, in the framework of a long-term supply contract with its partner. Including another air separation unit (ASU) it already operated for Sasol, Air Liquide operates a total of 17 ASUs in Secunda, with a total capacity of 47,000 t/d of oxygen.
Sasol Chemicals produces and sells more than 540 000 tonnes of ammonia annually. It is used to make a variety of fertilisers and industrial chemicals for the agriculture, mining, textile, and metalworking industries.
Sasol is a global chemicals and energy company. It harnesses its knowledge and expertise to integrate sophisticated technologies and processes into world-scale operating facilities. It safely and sustainably sources, produces and markets a range of high-quality products in 22 countries, creating value for stakeholders.
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