Sasol plans $6 billion coal-to-oil project in India

The Indian government is yet to identify the coal mines that could be awarded to South Africa’s Sasol, which plans to invest US$6 billion to put up a plant to convert coal to oil in India. Sasol, a pioneer in converting coal and gas to diesel fuel, has proposed to set up a coal-to-oil conversion project in India using gas-to-liquids (GTL) technology, provided it is awarded a coal mine with a one billion ton reserve. If it gets assurance on coal reserves, Sasol will conduct a feasibility study for the project, which alone would cost Rs200-300 crores (US$44.1-66.15 million). (October 14, 2006)