The bankable feasibility study (BFS) for blue ammonia producer Suiso’s R31.5-billion coal-to-fertiliser and methanol project in Kriel, Mpumalanga, was completed earlier this month. The study was carried out through engineering services firm Wuhuan Engineering.

With the BFS complete, basic engineering for the project will start in February, to be followed by the start of construction next year. The plant is slated to be fully operational and fired up in 2029.

Suiso founder Paul Erskine told Engineering News on January 29 that discussions were currently under way with financial services provider Afreximbank on mandating it as the exclusive lead arranger for the project’s financing.

"This project isn’t only about producing sustainable fertilisers and zero-sulphur methanol. It’s also about proving that decarbonisation and industrial innovation can work hand-in-hand," he said.

Using coal as a feedstock, the Suiso facility will employ advanced carbon capture, utilisation and storage (CCUS) systems – which are being developed in collaboration with the Council for Geoscience – to reduce emissions. Captured carbon will be repurposed for gypsum and ammonium carbonate production, converting waste into valuable resources for agriculture and construction.

Located on a 900 ha site in Leandra, the facility will integrate feedstock and production processes to maximise efficiency and affordability.

Feasibility studies are under way for carbon storage in deep saline aquifers.

Further, Suiso’s integrated coal gasification process will generate synthetic gas, hydrogen and ammonia, forming the foundation for fertilisers and zero-sulphur methanol.

Erskine said that, collectively, there are about 830 reference operations around the globe that have proven the effectiveness of these technologies and processes.

Sub-Saharan Africa, with its population of more than one-billion people, has just five fertiliser plants. China, by comparison, is home to 1.4-billion people, and has 277 fertiliser plants.

The Suiso facility aims to address this shortfall by producing 1.5-million tonnes a year of nitrogen-based fertilisers. The output includes urea, ammonia nitrate and controlled-release variants, while significantly reducing reliance on imported fertilisers.

Erskine revealed that the coal gasification technology used in the plant will be supplied by chemical industry company Air Products, while the ammonia synthesis aspect will be the product of engineering firm KBR’s expertise.

The urea production capability is being sourced from fertiliser plant engineering experts Stamicarbon, with the methanol production courtesy of petroleum refiner Sinopec.

Other technology partners include engineering firm Sinopec Ningbo and technology company Incro.

To support its decarbonisation goals, Suiso is also exploring a 15-year power purchase agreement with a renewable-energy provider. This collaboration will integrate renewable energy into the national grid to reduce reliance on coal-based power.

Suiso’s facility will implement wet flue gas desulphurisation and advanced water recycling systems to meet international emission standards. These technologies will reduce nitrogen dioxide and sulphur dioxide emissions, addressing long-standing air quality concerns in Mpumalanga.

Additionally, the production of 234 000 t/y of clean, zero-sulphur blue methanol will be in compliance with South Africa’s upcoming Fuel Act of 2027.

The South African maize market, valued at R46.3-billion, is projected to be valued at R55.6-billion by 2029. By replacing 1.2-million tonnes a year of imported urea fertiliser with locally produced products, Suiso’s production becomes an import substitution strategy, shielding farmers from volatile geopolitical supply chains and ensuring competitive pricing.

The project’s construction phase is expected to generate 4 000 jobs, transitioning to 981 permanent positions once fully operational in 2029. To build a skilled workforce, the on-site Gerhard Potgieter Engineering Training College will upskill 400 employees.

Beyond emissions control, Suiso’s land rehabilitation and biodiversity initiatives aim to restore local ecosystems. These efforts align with South Africa’s Just Energy Transition framework and global sustainability goals.

Export Trading Group is on board as offtaker, ensuring Suiso’s fertilisers reach sub-Saharan Africa’s most vulnerable regions.

By fostering global partnerships with Sinopec Ningbo Engineering and Stamicarbon, Suiso has access to world-class expertise and technologies and can ensure compliance with international standards, the company states.