IN A bid to reduce its reliance on coal as a major source of energy, Poland is planning to tap into SA’s expertise to convert its gas and coal reserves into liquids. Energy and chemicals company Sasol stands to benefit the most from this initiative should Poland approach SA on the use of this technology.

“SA is an expert in this technology and we would like to use it to diversify our energy sources into renewable energy,” says Slawomir Sonarski, deputy head of trade and investment promotion at the Polish commercial office in Joburg.

“We are mainly dependent on the supply of gas and oil from Russia and we are definitely looking at diversifying our energy sources.”

Sasol is already exploring opportunities in China, India and the US to test and use its technology in converting gas and coal into liquids. Like SA, coal is the main source of energy in Poland, a trend the authorities are hoping to change. Poland and SA are counted among the world’s top 25 greenhouse gas emitters.

In a show of force in 2009, Russia took the unprecedented step of stopping gas supplies to mainland Europe after a dispute with Ukraine over a transactional fee. Poland was one of the countries affected by this decision.

The gas-to-liquids and coal-to- liquids technology is one of the ventures likely to push up commercial transactions between SA and Poland. Total trade between the two countries last year netted $700m in revenue.

The figures showed that Poland, as the bigger economy, enjoyed a surplus as exports to SA totalled $448m in the corresponding year, far exceeding its imports from SA. Automotive parts, cosmetics, furniture, TV sets and monitors made up the bulk of exports to SA.

Both countries are planning to increase two-way trade to $5bn within the next five years.

Media group Naspers , brewery SABMiller and paper firm Mondi are some of the South African companies with operations in Poland.

With Poland next month assuming the presidency of the European Union (EU), its political position is also of interest to SA.

For one, climate change and plans to reduce gas emissions will feature high on the agenda of the EU during Poland’s presidency. This comes as SA hosts the United Nations Climate Change conference in November.

The EU last year committed €100m to SA for the promotion of “green jobs”, with a further €20m granted by the UK.

However, the real interest is trade. With annual trade between the EU and SA of about R400bn, the economic block is one of SA’s largest trading partner.

Last year the EU eliminated tariffs on 95% of South African goods traded with the bloc, while SA is expected to do away with tariffs on 86% of EU imports by next year.

The EU’s top imports from SA include fuel-related products, which make up 30% of exports. That was followed by manufactured goods at 16,7%, semi-manufactured goods at 15,6%, and agricultural products at 14%. Additionally, the bloc accounts for 70% of overall international development assistance to SA.

While trade policy analysts insist SA must diversify its export markets to other regions, Poland, as one of the fastest-growing emerging markets, offers some lucrative opportunities for South African companies, especially in retail and agriculture. Official figures estimated the Polish food export market at €13bn last year.

Mills Soko, an associate professor of international political economy at the University of Cape Town, says SA may get favourable trade deals from countries like Turkey, Vietnam and Indonesia.

Nonetheless, SA can ill afford to ignore the opportunities that a fast- growing country such as Poland can offer.

See article here.