The Challenges You Face
EU Carbon Border Adjustment Mechanism (CBAM)
Sasol's European chemical exports face €75-100/tCO₂e CBAM tariffs starting 2026 — adding R1.4-2.0bn annually to export costs. Coal-based process heat accounts for 70-85% of Scope 1 emissions.
Fossil Fuel Price Volatility
LNG imports averaged R35-45/GJ in 2025 (4× historical Mozambique gas). Coal prices up 180% since 2020. Long-term biomethane BSAs provide 15-25 year price certainty.
Energy Supply Chain Risk
SA heavy industry relies on Mozambique gas (pipeline sabotage risk), imported LNG (forex), and Eskom grid (55% availability). Behind-the-meter biomethane eliminates all three dependencies.
Commercial Partnership Models
TerraFerm Africa offers three flexible commercial structures for heavy industry biomethane deployment:
Biomethane Supply Agreement (BSA)
Long-term fuel offtake (15-25 years)
- •Take-or-pay biomethane delivery at fixed or indexed pricing
- •Pipeline injection or virtual wheeling to facility
- •Volume commitments: 50-500 TJ/year (scalable to demand)
- •Pricing: Competitive with coal and LNG, CPI-linked escalation
- •No upfront CAPEX required
Behind-the-Meter Generation
On-site biogas CHP for process heat + power
- •TFA finances and operates biogas infrastructure on adjacent land
- •Energy-as-a-service model: Pay per GJ consumed
- •Combined heat and power: 85% total system efficiency
- •Direct thermal energy (120-180°C) for steam, boilers, dryers
- •Zero grid dependency, zero fossil fuel exposure
Carbon Credit Bundling
Biomethane + verified carbon removal credits
- •Biomethane supply with Verra/Gold Standard carbon credits (2.1 tCO₂e removal per MWh)
- •Scope 1 emission reduction claims for direct fuel combustion
- •EU CBAM compliance documentation
- •Premium pricing or voluntary market revenue share options
Scope 1 Decarbonization
Result: Eliminates Scope 1 emissions + CBAM tariffs while achieving cost parity with fossil fuels.
Technical Specifications
85% Total System Efficiency
- Combined Heat and Power (CHP): 42% electrical + 43% thermal
- Thermal energy delivered at 120-180°C for process heat
- Applications: Boiler replacement, drying, distillation
1:1 BTU Equivalent — Drop-In Replacement
- Direct Substitution for Natural Gas
- Pipeline-quality biomethane: 97% CH₄ purity
- Calorific value: 35-38 MJ/m³ (equivalent to LNG)
- No equipment modifications required (burners, boilers, turbines)
- Proven technology: 20,000+ biogas plants operating globally
15-25 Year Supply Agreements
- Long-Term Price Certainty
- Fixed or indexed biomethane pricing with CPI-linked escalation
- Hedge against fossil fuel volatility and carbon tax increases