Page 6 - DMEA Week 28 2022

DMEA COMMENTARY DMEA

Renergen’s ambition for

South Africa’s Free State

The company is gearing up to launch Phase 1 of the country’s

first LNG plant against a backdrop of nationwide power shortages.

AFRICA STEFANO Marani, the CEO of South Africa’s consumption, just to put it in context,” he said.
Renergen, said on July 11 that his company And with respect to LNG, he said, total produc-
expected to bring the first phase of its onshore tion will be equivalent to about 75,000 litres of
WHAT: LNG plant online in Free State before the end of diesel per year.
Renergen expects to the month. The primary purpose of the Phase 1 project,
launch Phase 1 of its LNG In an interview with CNBC Africa, Marani he noted, was “proof of concept to show that the
plant later in July. described the upcoming launch of the facility’s gas was there in Free State and we could separate
Phase 1 as a milestone. He noted that the unit the LNG from the liquid helium and we could
WHY: would be South Africa’s first gas liquefaction sell the two separate streams.”
The facility will be unit, as well as the first helium plant in sub-Sa- Once this milestone has been reached, Ren-
South Africa’s first LNG haran Africa. ergen can start “working on a much more, let’s
production facility and “When this plant first turns on this month, it call it, global-scale project, which is our phase
sub-Saharan Africa’s first will make South Africa one of only eight coun- two project, which we’re anticipating reaching
liquid helium production tries in the world to produce liquid helium,” he financial close in early next year and bringing
facility. commented. “So it’s quite a big step forward for online in early 2025,” Marani continued. The
the country.” second phase of the plant “will obviously be a
WHAT NEXT: significantly larger endeavour,” he remarked.
Since the launch is Proof of concept
taking place at a time of He went on to say that Renergen would be Domestic sales and exports
extreme power shortages producing LNG and helium on a relatively The CEO said that his company would be
in South Africa, it could small scale when the plant’s first phase began marketing its LNG to three types of customers
stir new interest in the operations. within South Africa – buyers seeking to use it as
LNG-fuelled generators “The output for this is relatively small. It’s industrial fuel, buyers seeking to use it as gener-
that Renergen is already about 300-350 kg of helium per day, which ator fuel and buyers seeking to use it as freight
prepared to supply. is about one and a half times South Africa’s transportation fuel. For customers in all of these

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