Johannesburg — IN A groundbreaking project at the University of the Witwatersrand, a team of researchers has refined the Fischer-Tropsch technology, for the production of alternative fuels from coal, into a technique that is punted as more economical than the technology in commercial use.

The technology is also simpler, making it more "appropriate" for roll-out in Africa, David Glasser, one of the scientists heading the project, said.

The project, led by Glasser and Dianne Hildebrandt of Wits's Centre of Material and Process Synthesis (COMPS), was commissioned and funded by a Chinese company.

With oil prices having more than trebled since 2002, and reaching highs of $76 a barrel, the race for alternative energy sources is on.

SA is at the forefront of producing alternative fuels from coal and gas. Sasol leads the way through the deployment of Fischer-Tropsch technology, used to turn gas to liquid fuel on a commercial scale.

But the technology is expensive and dirty. COMPS's technology, developed over 15 years, could significantly reduce the cost of setting up such plants and could also reduce operating costs, as less feedstock would be required.

Equally pertinent, however, is that the technology is more environmentally friendly, effecting a significant reduction in carbon dioxide emissions, the main cause of global warming.

Because of its reliance on coal-fired power stations, SA is one of the world's biggest contributors to carbon emission.

COMPS's technology will not be tested in SA, however, but in China, with a Chinese company, Golden Nest Technology Group, having put up R75m in funding for the project.

The pilot project to prove the technology will commence within eight months in China's Shaanxi province.

If successful, the project would be rolled out commercially, with Chinese government backing, and could be operational by 2014, project manager David Milne said.

The potential cost reduction has yet to be quantified. But the COMPS technology could reduce emissions to 6,5 tons of carbon dioxide per ton of fuel produced, from the current level of 7,5 tons.

Moreover, in a pioneering development, the COMPS research team is looking at combining gas-to-liquids (GTL) and coal-to-liquids (CTL) technology, which would potentially cut emissions further.

Hildebrandt said combining CTL and GTL had not been done before, but the team was confident that it should work. Adding 20% of natural gas to the CTL process could reduce carbon emissions another 30%.

Glasser was critical of the development of GTL plants, saying limited gas reserves could be more efficiently used in combination with coal, stretching the life of reserves. "It would be more sensible to pipe gas to coal reserves," he said.

While few countries have both gas and coal reserves, SA is well positioned because of abundant coal and access to Mozambican gas.