Date: 29/06/2009

Source: Department of Science and Technology

Title: SA: Pandor: Remarks by the Minister of Science and Technology at the opening of the Sasol Fuel Application Centre

Programme director
Sasol Chief Executive, Mr Pat Davies
Western Cape Premier, Ms Helen Zille
Distinguished guests
Members of the media
Ladies and gentlemen

I am honoured by this opportunity to say a few words at the official opening of the Sasol Fuels Application Centre.

I am particularly pleased to be associated with the opening of this research facility, which is equipped with some of the most advanced engine testing and emissions measurement technologies in the world.

Sasol Fuels Application Centre's measurement capabilities are geared to understanding vehicle exhaust emissions as well as their environmental impact.

South Africans bear a collective responsibility for maintaining the environment. In particular, the Kyoto Protocol sets the car industry stringent fuel consumption and carbon dioxide targets.

South Africans remains serious about reducing greenhouse gas emissions that result from the use of traditional fossil fuel products.

In this regard, South Africa endorsed the long term mitigation scenarios. They indicate that the current energy consumption path is unsustainable and alternative paths need to be explored. Various government departments are putting in place the necessary measures to ensure that future generations inherit a sustainable South Africa.

Sasol is the world's biggest coal-to-oil producer.

Quantifying the potential benefits that may be realised from the use of synthetic fuels is now more important than ever.

The world energy outlook for 2008 saw alternative fuels steadily increasing in market penetration towards 2030, with second generation bio-fuels such as synthetic biomass-to-liquid and gas-to-liquid technologies growing significantly. This global shift is reflected in South Africa, for example, in the aviation industry's increased appetite for synthetic fuels.

However, the outlook for 2008 also highlighted the fact that global passenger vehicle technology is expected to remain dependent on petroleum fuels and internal combustion engines for some time. The enhancement of internal combustion engines through new combustion techniques, the use of clean fuels and hybrid technology will ensure increased efficiency and reduced greenhouse-gas emissions.

South Africa's dependency on imported energy (crude oil) and the depletion of the world's energy reserves pose a serious threat to future energy security, with the development of emerging economies putting pressure on global resources.

Coupled with climate change, this means that South Africa, like many other countries, needs to explore alternative energy feedstock and indigenous technologies in order to sustain our economic development.

Last year the Department of Science and Technology launched the national hydrogen and fuel cell technology research, development and innovation strategy. The launch of this strategy was important because hydrogen and fuel cells are widely seen as key elements in the energy mix for the 21st century. This technology enables clean, efficient production of power and heat from a range of primary energy sources.

The Department of Science and Technology believes that, if properly managed, the transition to hydrogen should greatly reduce dependency on oil and gas and lower carbon dioxide emissions, especially when used in efficient fuel cells with hydrogen from non-fossil sources.

We hope that Sasol will be working with us in this regard.

The Department of Science and Technology's ten year innovation plan for South Africa identifies five grand challenges, two of which are relevant here global change science and energy security. South Africa needs to develop and use sustainable energy and demand side management technologies to reduce the impact of climate change.

Seeing that the Fuels Application Centre is located in the Capricorn business and technology park area of Muizenberg, I hope that all business on the premises will be conducted in an environmentally responsible way.

This centre should be able assist the transport fuels sector move towards the global uptake of sustainable fuels.

The Department of Science and Technology looks forward to working together with Sasol in developing solutions to these global challenges (energy security, climate change and economic development).

The opening of the Sasol Fuels Application Centre represents an important step in that direction.

It is now my pleasure to declare this facility open.

Thank you.