A solar energy facility planned for Paarl in the Western Cape could begin producing power in two-and-a-half years, Henri Loubser, project director for new energy at Sasol, said on Friday.

The thin-film solar energy facility, which will have a 40MW capacity, is a public- private partnership between the University of Johannesburg and private investors. Sasol has a 40 percent interest in the initiative that will offer consumers a cheaper alternative to standard panels.

Other shareholders in the project are the state-owned Central Energy Fund (45 percent) and the National Empowerment Fund (6.5 percent). Through its commercial arm, Photovoltaic Intellectual Property, the University of Johannesburg has an 8.5 percent interest in the partnership.

Speaking at the launch of Sasol's sustainability report on Friday, Loubser said the technology was being developed at a test facility in Germany and would be transferred to SA.

One of the world's top emitters

In December last year, the European Investment Bank announced that it had lent ?40-million for the construction of the solar energy facility.

On Friday Sasol released its 10th sustainability report, in which the company explains how it is handling carbon emissions, among other sustainability issues.

Sasol is the second-biggest emitter of carbon in South Africa after Eskom (221.7 million tons), and is one of the top emitters in the world.

Direct emissions from Sasol's South African operations in the year ended June were 52.7 million tons.

Sasol's indirect emissions ? which include the additional emissions associated with its use of Eskom electricity ? amount to 62 million tons.

Through its recently established new energy unit, Sasol said that it would improve energy efficiency in the short term, while exploring opportunities to survive in a carbon-constrained future.

"Wait and see" regarding biomass

The South African government has committed itself to ensuring that the country's carbon emissions peak between 2020 and 2025.

Loubser said Sasol considered wind a mature technology with potential in South Africa. But the company had adopted a "wait and see" approach regarding biomass.

"In terms of biomass, we will be holding off moving forward until there is further clarity on biofuels and greater evidence of potential for collaboration with the biofuels industry," Sasol said in the report.

Concern about the availability of water and land had contributed to Sasol?s hesitant approach to biomass, Loubser said.

He said Sasol was also evaluating opportunities in nuclear energy, and was monitoring developments in the Pebble Bed Modular Reactor.

Loubser said the company could enter a nuclear partnership with Eskom.

Nuclear investment would be in line with Sasol's plans to reduce carbon emissions. The group wants to cut emissions by 15 percent by 2020, on a 2005 baseline.

It wants to reduce emissions for new plants by 20 percent before 2020 and achieve a 30 percent reduction for plants commissioned before 2030.

Loubser said Sasol wanted to be a leader in carbon capture and storage. He said the group would not invest in future coal-to-liquid or other coal-based plants "without clear mitigation solutions".

The Times