The Soapbox | Where South Africans Speak Out

Al Gore’s latest slideshow presentation presents a worsening climate crisis and in the presentation he labels the consumption of coal as the most serious problem contributing to this crisis. The Alliance for Climate Protection has launched two new campaigns. The first campaign attacks the coal companies’ claims that clean coal technology is an answer to reducing the environmental impact of coal consumption. Whilst the second campaign claims to have the answer for America’s three biggest crises: the economy crisis, the national security crisis and the climate crisis. The answer is to invest in new energy technology.

America and China are the world’s leaders in carbon dioxide emissions and the largest consumers of coal. And in South Africa, Eskom and Sasol are leaders in carbon dioxide emissions and the largest consumers of coal. Sasol is the world leader in Fischer-Tropsch Synthesis technology, a process to produce synthetic fuel from coal. And Sasol is currently implementing this technology in China and negotiating to implement this technology in America.

South Africa’s star company is, therefore, significantly contributing to Al Gore’s climate crisis.

However, according to its Sustainable Development Report, in 2008 Sasol increased production from 35 kilotons in 2006 to 42 kilotons, whilst greenhouse emissions increased by only 1% and hazardous waste was reduced from 254 kilotons to 97 kilotons. It is clear that Sasol is committed to investing in clean coal technology (reducing emission intensity) and this technology must be recognised as part of the solution to reducing the environmental impact of coal consumption. However, more needs to be done.

Investment in new ideas will not only help to solve the climate crisis but will also help stimulate economic growth. Years ago Sasol heavily invested resources in researching and developing the Fischer-Tropsch process. Today Sasol is the world leader in the technology and claimed an operating profit of R34 billion for 2008.

Companies require incentives in order to make investments in new ideas. It is clear that an investment today in new energy technology will certainly lead to technology, market and profit superiority in a new energy future. An incentive for companies to invest in new ideas exists. Companies must just recognise that incentives are waiting for them. They just need to invest a little more to grab hold of them. Sasol seems to have recognised some need to invest in new energy technology. Sasol has completed basic engineering designs for an underground coal gasification plant and have, together with Eskom and Anglo Coal, commissioned a study to investigate South Africa’s ability to capture and store carbon dioxide. However, this hardly counts as a serious investment in new energy technology.

The world wants new energy technology! Why doesn’t South Africa commit to investing in giving the world what it wants? By doing so, we surely stand to increase our own economic growth tenfold.

We have vast rural areas to produce biofuels. We have smart young minds to develop new energy technology. We have world-class technology companies and university departments to stimulate idea innovation. And we have capital resources to invest in new energy technology.

South Africa’s leading technology companies, government departments and universities need to commit to investing in a new South African project that promises to deliver new energy technology.

I challenge Sasol to take the lead.

Stefano di Trapani is an Accounting and Law student at the University of Stellenbosch.