South Africa’s Sasol plans ZAR1.8bn gas engine power plant

South African petrochemicals group Sasol (SSL.NYQ) announced plans to build a 140MW gas engine power plant at a cost of ZAR1.8bn (US$261.9m). With the investment, the company intends to cut its carbon footprint and reduce its dependence on power utility Eskom.

“The project will make a significant contribution to improving the country’s current electricity supply situation by freeing up electricity that would otherwise have to be imported from the national grid,” said Henri Loubser, managing director of Sasol’s new energy unit.

Electricity generation is scheduled to start by the end of 2012 and is expected to cut Sasol’s carbon emissions by nearly 1Mta.