I don’t understand the numbers well enough to know how significant news like this is, but it’s clear that we’re only going to see more of this in the five-to-ten year horizon as conventional oil stays expensive:
South Africa’s Sasol (SOLJ.J: Quote, Profile, Research), the world’s biggest maker of motor fuel from coal, said on Thursday it was working jointly with India’s Tata Group to acquire coal fields for coal-to-liquid ventures.
“Sasol and Tata are collaborating with the Indian government on the allocation of coal blocks for CTL (coal-to-liquid) projects,” Johann van Rheede, Sasol’s spokesman told Reuters.
He said the company still has long-term plans to develop coal-to-liquids fuels projects in India though it was still “early days”.
Sasol also has similar nascent plans in China, the world’s biggest producer and consumer of coal.