SUISO Coal-to-Fertiliser and Methanol Project in Mpumalanga, South Africa continues to progress through pre-construction and engineering milestones in 2026, with the developer reporting continued advancement of environmental approvals, land-use processes, and engineering work packages ahead of a planned construction start.

The Kriel-based project remains one of South Africa’s most ambitious industrial fertilizer investments, with an estimated capital cost of R31.5 billion (US$1.7 billion) and plans to produce approximately 1.5 million tonnes of fertiliser products annually alongside blue methanol output.

SUISO Coal-to-Fertiliser and Methanol Project in South Africa will mainly serve as an import-substitution and industrial decarbonisation asset. It will use South Africa’s coal resources with carbon capture integration to produce lower-carbon ammonia, methanol, and nitrogen-based fertilisers for domestic and regional agricultural markets. This is as South Africa continues development of other ammonia projects including the US$5.8 billion Coega Green Ammonia Project in Eastern Cape.

Fact Sheet for SUISO Coal-to-Fertiliser and Methanol Project in South Africa

Developer: SUISO

Location: Kriel, Mpumalanga

Estimated investment: R31.5 billion

Primary products:

• Urea
• Ammonium nitrate
• Controlled-release fertilisers
• Blue ammonia
• Blue methanol

Annual fertiliser capacity: 1.5 million tonnes

Methanol output: 234,000 tonnes annually

Feedstock: Coal with carbon capture integration

Project objective: Import substitution and regional fertiliser security

Target operations: 2029 (subject to financing and approvals)

Project Timeline

2019: SUISO established and project concept initiated

2022-2024: Technical studies, stakeholder engagement, project structuring

January 2025: Public investment disclosure of R31.5bn project

April 2025: Environmental and rezoning milestones reported as advancing

June 2025: Engineering and technical package development continues

2026: Project continues engineering, approvals, and pre-construction preparation

2026/2027: Expected financing and construction decision window

2029: Commissioning target

Project Team

Developer

• SUISO

Engineering Partners

• East China Engineering Science and Technology Co. (ECEC)
• Sinopec Ningbo Engineering
• Stamicarbon
• ETG Inputs Holdco / ETG Group

Government Stakeholders

• Mpumalanga Provincial Government
• South African environmental regulators

Suiso Invests $1.7 Billion in Constructing a Mega Coal-to-Fertilizer Plant in South Africa

Reported January 29, 2025 – Suiso Company is set to invest $1.7 billion in constructing South Africa’s coal-to-fertilizer plant in Mpumalanga. The company, founded in 2019 by local entrepreneurs, specializes in blue ammonia production. The project aims to create 4,000 jobs during construction, with construction expected to start in 2026. Expected to be fully operational by 2029, the project also aims for 981 permanent positions once completed.

The coal-to-fertilizer plant will produce 1.5 million tons of nitrogen-based fertilizers annually. It will also produce 234,000 tons of clean, zero-sulphur blue methanol annually. The coal-to-fertilizer plant aligns with South Africa’s pending Fuel Act of 2027 as it seeks to replace South Africa’s import of 1.2 million tons of urea fertilizers. This will save South Africa’s foreign exchange and shield the agricultural sector from volatile global supply chains. Moreover, once the facility is operational, decarbonization and carbon capture technologies from the plant will enhance sustainability. It is also expected to boost crop yields by up to 5%.

Also read: Afreximbank to Invest $1.4 Billion in Angola’s Fertilizer Plant

Contractors Involved in SUISO’s Coal-to-Chemicals Project in South Africa

South Africa’s coal-to-fertilizer plant seeks to bring on board various local and international-based companies. These include global leaders such as Sinopec Ningbo Engineering, Stamicarbon and ETG. These partnerships emphasize Suiso’s commitment to ensure excellence and community upliftment through this project.

Suiso founder, Paul Erskine noted that the project is more than implementing a fertilizer plant. “It is a commitment to South Africa’s economic empowerment, food security, and sustainable development,” he noted. Erskine also noted that with global partnerships, innovative technologies and a focus on community uplifment aim to revolutionize the nation’s economic landscape.

Moreover, it seeks to address the agricultural landscape of the sub-continent. By addressing Sub-Saharan Africa’s urgent food security challenges, Suiso’s facility will play a pivotal role in nourishing crops and supporting the UN’s goal of increasing global food production by 60% by 2050.

Also read: 100,000 Metric Tonnes Rwanda Fertilizer Company Factory Launched

Also read: Zimbabwe to Convert Coal to Ammonia-Based Fertilizer