By IANS
Pretoria : The South African government has launched a joint venture with oil major Bataung Oil and Gas and NT Energy Africa to develop sustainable alternative energy in order to meet the country’s increasing power demand, BuaNews agency reported Monday.
Bataung Oil and Gas is to begin exploration from coal bed methane reserves as part of the $11.6 billion project to meet the huge energy shortfall of the country.
Bataung group’s chairman Billy Modise has said that the project comes at a time when the need to diversify the country’s energy sources has become quite necessary.
For South Africa to meet the development and job creation targets as outlined in the Accelerated and Shared Growth Initiative of South Africa, it has become non-negotiable for developing a sustainable alternative energy source, Modise said.
Currently, South Africa relies on about 1,400 megawatts of power from South African electricity public utility Eskom.
Managing director of Bataung Group Kinesh Pather said: “Coal bed methane and the conversion of gas to liquid fuels will provide a clean and long-term solution to the current energy crisis.”
The project would require a potential investment of $10 billion in the next seven to 10 years and would be jointly funded by NT Energy and Bataung.