Sasol-Tata Steel JV aims to produce 80,000 bpd by 2018

South Africa's Sasol Synfuel, which has entered into a joint venture with Tata Steel to produce fuel from a coal block in Orissa, expects the venture to be operational by 2018.

"In this joint venture, which is in development phase, we are looking at converting coal to liquid fuel, like diesel and other fuels," Sasol Synfuel International's Country President Mark Schnell told reporters on the sidelines of a seminar here today.

The 50:50 joint venture formed by the two entities recently involves an investment of $10 billion, he said. It expects to produce 80,000 barrels of fuel per day from the coal block.

For this mega project, the Indian government has allocated a coal block at Talcher in Orissa to the JV.

"This will be strategic and good for India as there is an increase in the number of vehicles leading to rise in demand for liquid fuel," Schnell said.

In the JV, Sasol is playing the role of technology provider, co-developer and co-investor, he said.

Sasol also has a similar venture in China.