In the heart of Mpumalanga, a region historically known for its coal mining, a groundbreaking project is set to redefine the future of sustainable energy and food security in South Africa. Suiso, a homegrown company specialising in blue ammonia production, has announced a monumental $1.7 billion (R31.5 billion) investment in a state-of-the-art coal-to-fertiliser facility in Kriel.
Founded in 2019 by four visionary South African entrepreneurs, Suiso is on a mission to drive sustainable energy solutions, enhance food security, and promote responsible resource management.
The project, which has garnered significant attention for its scale and ambition, is backed by prominent businesswoman and former Miss South Africa Basetsana Kumalo as a black economic empowerment (BEE) partner.
It promises to create 4,000 jobs during its construction phase, slated to begin in 2026, and 981 permanent positions once the facility becomes operational in 2029.
At full capacity, the facility will produce 1.5 million tons of nitrogen-based fertilisers annually, replacing South Africa’s current import of 1.2 million tons of urea fertilisers. This will not only save the country valuable foreign exchange but also shield the agricultural sector from the volatility of global supply chains.
The vision behind the investment
Paul Erskine, founder of Suiso, shared insights into the company’s vision and the driving forces behind this mega project.
“Our goal is to create a sustainable future for South Africa by leveraging our natural resources responsibly,” Erskine explained.
“This project is about more than just producing fertilisers; it’s about ensuring food security, creating jobs, and reducing our reliance on imports.”
When asked about the primary investors and funding partners behind the R31.5 billion project, Erskine noted that while this information remains confidential for now, it will be released with the consent of funding partners at the Final Investment Decision (FID) stage.
Securing the investment
The $1.7 billion investment is a complex undertaking, and Suiso has been working diligently to secure the necessary funding.
“We are in discussions with Afreximbank to act as the lead arranger of syndication funding,” Erskine revealed.
While the South African government has not yet provided financial support or incentives, Erskine confirmed that Suiso plans to approach them in due course.
“We believe this project aligns with national priorities, and we are hopeful for their support,” he added.
The role of BEE partners
Basetsana Kumalo’s involvement as a BEE partner emphasises the project’s commitment to inclusivity and economic transformation.
“Our BEE partners hold significant shareholding and have fundraising capacity, which is crucial for the success of this project,” Erskine emphasised.
Addressing environmental concerns
One of the most pressing questions surrounding the project is how Suiso plans to address environmental concerns, particularly regarding coal usage and carbon emissions.
Erskine assured that sustainability is at the core of the project.
“We applied for Environmental Authorization in April 2024, and Environmental Impact Studies and Water Licenses are currently underway,” he said.
“Additionally, we are conducting a feasibility study with the Council for Geoscience to explore the possibility of sinking CO2 into underground reservoirs, which would significantly reduce our carbon footprint.”
The project also includes a 15-year renewable energy power purchase agreement (PPA) to contribute to its carbon neutrality goals.
“The PPA will supply wheeled renewable energy with Renewable Energy Certificates (RECs) or Carbon Credits,” Erskine explained.
“However, feasibility studies with contractors are still underway to finalise these plans.”
Aligning with South Africa’s climate commitments
Erskine stressed that Suiso is committed to aligning the project with South Africa’s international commitments to reducing greenhouse gas emissions.
“We are conducting feasibility studies to ensure compliance with all commitments after the Basic Engineering phase,” he said.
As for the long-term environmental impacts of using 1.5 million tons of coal annually, Erskine acknowledged the challenges but expressed confidence in Suiso’s mitigation strategies.
“This will be addressed in our Environmental Management Plan, which is due to be released in August 2025,” he said.
A transformative project for South Africa
The Suiso coal-to-fertiliser project represents a bold step forward for South Africa, blending innovation, sustainability, and economic development.
By leveraging cutting-edge decarbonisation and carbon capture technologies, Suiso aims to set a new standard for responsible resource management in the country.
As Erskine put it, “This project is not just about today; it’s about building a legacy for future generations. We are committed to creating a sustainable, inclusive, and prosperous future for South Africa.”
With construction set to begin in 2026 and operations launching in 2029, the eyes of the nation, and the world, will be on Kriel, Mpumalanga, as Suiso turns its ambitious vision into reality.
