21 May 2021 - NW623
Madokwe, Ms P to ask the Minister of Mineral Resources and Energy
Whether, taking into consideration the global shift towards cleaner fuel and energy consumption in an attempt to curb the global carbon footprint, his department has any plans in place to ensure that PetroSA starts producing cleaner fuel; if not, what are the reasons that no plans are in place; if so, what are the relevant details, including the (a) status of the specified project and (b) date by which implementation can be expected?
PetroSA has plans in place that are targeting a new imported Liquefied Natural Gas supply to replace the depleting indigenous gas produced from its offshore gas fields for the last 30 years. Gas imports for the production of synthetic fuels are planned to start in 2022. The potential for longer term gas supply from newly discovered offshore gas fields is also being considered.
PetroSA is reviewing the potential to convert the Mossel Bay site to a ‘carbon free’ blue hydrogen production facility which will be explored in more detail when operation on imported Liquefied Natural Gas is completed. Operation on Liquefied Natural Gas will also enable PetroSA to recommission the Methcap renewable power facility installed to produce power from biogas which was in operation from 2004/5 until November 2020 (i.e. green electricity).
PetroSA fuel produced from processing of gas meets most of the CF2 specifications. However, capital investment will be required to meet the anticipated South African Clean Fuels 2 specifications.
PetroSA’s depleted offshore gasfields are also identified as the most promising carbon dioxide storage opportunity in South Africa to facilitate a lower carbon footprint. The ‘Atlas on geological storage of carbon dioxide in South Africa’ was completed together with the Council for Geoscience and major industry players highlights PetroSA’s existing infrastructure potential in this regard.