SUISO to transform economy with a R31.5 billion investment in coal-to-fertiliser production

SUISO integrates world-class technologies from licensors with more than 830 reference plants globally. Picture Henk Kruger/ Independent Newspapers.

SUISO integrates world-class technologies from licensors with more than 830 reference plants globally. Picture Henk Kruger/ Independent Newspapers.

Published Jan 29, 2025

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Fertilizer supplier SUISO said on Wednesday that it will be investing R31.5 billion ($1.7 billion) to drive agricultural innovation, economic growth, and sustainability in Mpumalanga.

The company said that the coal-to-fertiliser project will create jobs, bolster food security, and attract global partnerships while positioning the country as a regional leader in sustainable agriculture.

“With this project, SUISO is not only addressing food security, but also making a significant contribution to South Africa’s economic empowerment and growth,” Paul Erskine, SUISO founder said.

The construction phase (expected 2026) of the project will create 4 000 jobs.

There will be 981 permanent positions available on site upon operational launch in 2029.

Through workforce development initiatives (such as the onsite Gerhard Potgieter Engineering Training College) SUISO said it will upskill 400 people, building a skilled and sustainable labour pool for the region.

The project’s output will include 1.5 million tons of nitrogen-based fertilisers annually, replacing South Africa’s import of 1.2 million tons of urea fertilisers.

“This is set not only to save foreign exchange, but also to shield the agricultural sector from volatile geopolitical supply chains. The facility will produce 234 000 tons of clean, zero-sulphur blue methanol annually, aligning with the pending South African Fuel Act of 2027,” the company said.

Advanced decarbonisation and carbon capture technologies enhance sustainability, while controlled-release fertilisers with PurActive coatings improve nitrogen efficiency and crop yields by up to 5% compared to conventional products.

The South African maize market, valued at R46.3 billion, is projected to reach R55.6-billion by 2029.

Strategic global partnerships Sinopec Ningbo Engineering, has been selected for Basic Engineering and construction.

“Collaborations with Netherlands-based Stamicarbon, a global leader in urea production technology, and ETG (Export Trading Group), a key fertiliser distributor across Africa, underscore a commitment to excellence, applying global best practice methodologies, and community upliftment,” SUISO stated.

It added that ETG will have exclusive offtake of established distribution networks and will ensure SUISO’s fertilisers reach areas most in need across the African sub-continent, supporting local agriculture and uplifting farming communities whilst contributing to long-term food security.

Cutting-edge technology revolutionising agriculture

SUISO integrates world-class technologies from licensors with more than 830 reference plants globally.

Its process flow, coal gasification to syngas, hydrogen, ammonia, fertiliser, and blue methanol – ensures efficient, sustainable production with minimal environmental impact.

By utilising 1.5 million tons of coal annually, SUISO will produce both fertiliser and 234 000 tons of zero-sulphur blue methanol.

While the global coal market trades 8 billion tons per year, SUISO’s application showcases a shift towards value-added, sustainable solutions.

“The project’s inland location reduces logistical costs, benefiting farmers directly. Discussions are underway for a 15-year power purchase agreement with a leading renewable energy provider. This will further solidify SUISO’s commitment to achieving carbon neutrality. Sub-Saharan Africa’s food security challenge is urgent, with the region hosting more than a billion people, but operating only five fertiliser plants,” the company said.

Transforming the future of South Africa “This is more than a fertiliser project,” Erskine said.

“It’s a commitment to South Africa’s economic empowerment, food security, and sustainable development. With global partnerships, innovative technologies, and a focus on community upliftment, we are set to redefine the agricultural and economic landscape of the sub-continent,” Erskine added.

BUSINESS REPORT