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Jul 9
India: $6 billion investment on Alternative fuel on the Card from Sasol
Sasol is a South African company that has achieved a lot of success in producing diesel from coal and gas. Now, this company is contemplating seriously on the idea of capitalizing on the growing demand for energy in India. In fact, according to a report of Business Standard, the investment may be $6 billion. The investment will be mainly in the alternative fuel sector. The initial investment may be $1 billion and Sasol wants to use coal of India. India has one of the largest coal reserves in the world and that is why Sasol is interested for manufacturing alternative fuel in India.
 
In the website of Sasol, I found the following description about the activities of the company:
"Sasol was established in 1950 by the South African government to manufacture fuels and chemicals from indigenous raw materials. The company has developed world-leading technology for the commercial production of synthetic fuels and chemicals from low-grade coal as well as the conversion of natural gas to environment-friendly fuels and chemicals. It is committed to sustainable development and is a signatory of Responsible Care®, a worldwide initiative by the chemical industry that strives to improve performance in safety, health and environment."
 
This is clearly a win-win situation for both Sasol and India. For Sasol, India offers a huge attractive and untapped market. If Sasol can use this market then its profit will soar within a very short time. On the other hand, if Sasol can be successful in manufacturing alternative fuel in India then India can cut back on its oil import bill significantly.

2 Comments/Trackbacks




It's good to hear BP & GM talk about alternative fuels, but 50 years to implement is too long.

http://money.cnn.com/2008/03/05/news/companies/bigoil_hydrogen/index.htm


Perhaps this link will spark more attention:

http://www.chevrolet.com/electriccar/


It is GM's electric concept car the Chevy Volt. If more people begin to demand alternative fuel cars, we should be able to speed the rate at which the technology is
developed.

We have started an Investor Forum where Investors can meet and discuss topics like this:

http://www.thesubway.com/small-cap-forum/

We found an interesting article about the problems with Ethanol on ConsumerReports.org:

http://blogs.consumerreports.org/cars/2008/03/ethanol-e85.html

"But there are some problems with increasing ethanol blends. Ethanol contains less energy than gasoline, so increasing the amount of ethanol in gasoline will likely result in lower fuel economy. Increasing standard fuel blends from zero to 10 percent ethanol, as is happening today, has little or no impact on fuel economy. In tests, the differences occur within the margin of error, about 0.5 percent. Further increasing ethanol levels to 20 percent reduces fuel economy between 1 and 3 percent, according to testing by the DOE and General Motors. Evaluations are underway to determine if E20 will burn effectively in today's engines without impacting reliability and longevity, and also assessing potential impact on fuel economy."

TheSUBWAY.com would like to invite readers to post their own views and ideas in TheSUBWAY.com's Investor Forum:

http://investor-forum.thesubway.com/

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