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Blog 9 Sept 2026

Switching industry from oil to pellets

There is a better fuel for the job. The catch is the boiler. That gap is where we come from.

Cape Carbon engineers at the converted test boiler

South African industry runs on heat

Factories, food and beverage producers, processing plants: they all run on steam and heat. Every day, or the line stops.

Most of that heat still comes from paraffin, diesel, and heavy fuel oil (HFO). Those fuels work. They are also expensive, carbon-heavy, and priced off a global oil market no South African plant can control. Add a rising carbon tax, and your fuel bill becomes the one number nobody can predict.

There is a better fuel for the job: wood pellets, made locally, burned in your own boiler. Cleaner, and steadier on price. The catch: you cannot just pour pellets into a boiler built for oil. Cape Carbon was built to make the switch to pellets simple.

How Cape Carbon started

It started with a wall we kept hitting.

Coega Biomass Centre produces wood pellets at industrial scale in Gqeberha. When the commercial team began taking that fuel to the plants that stood to gain the most – the ones burning heavy fuel oil, diesel, and paraffin – the interest was real. The numbers made sense. Yet with those very plants, the conversation stopped at the same point.

The reason is technical, and it matters. A plant burning coal can move to pellets in a day. But a boiler built for heavy fuel oil, diesel, or paraffin cannot simply be fed pellets; it has to be converted first. And that conversion was not Coega Biomass Centre's to give. So the customer was left holding the hardest part of the job: find an engineering firm, scope a retrofit, manage a second contractor, and hope the fuel and the boiler ended up compatible.

Faced with that, most plants did not switch at all. Easy to understand why.

The fuel was ready. The demand was there. The only thing missing was someone to take the boiler off the customer's hands. That gap is where we come from.

One company, fuel and flame

Cape Carbon is a partnership between Coega Biomass Centre and DreamTech Engineering, a specialist engineering firm working in combustion, thermodynamics, and biomass thermal processing.

The fit is not cosmetic. Coega Biomass Centre makes the pellets; DreamTech converts the boiler that burns them. In Cape Carbon, the two unite. One company, not a fuel supplier and an engineering firm that have never worked together.

What we do

We take you from fossil-fuel heat to biomass heat. We convert and retrofit your boilers and burners, supply the pellets, design the systems that store and feed them, and keep the whole thing running.

Clean fuel, cleaner land

The fuel does good before it is even burned. Our pellets are made from local wood: forestry residues and invasive alien plants, the species that guzzle water and threaten South Africa's indigenous plants. Clearing restores water to the land and gives native biodiversity a chance to grow back. The same fuel that lowers your emissions leaves the land better than it found it.

Cape Carbon team on a pellet stockpile in the warehouse

We are just getting started

We are early, and we will say so straight. We have not run a hundred sites yet. What we have done is convert our own boiler at our test facility in Gqeberha, because we will not ask you to do anything we have not done ourselves.

Now we are looking for our first industrial partners. If your heat runs around the clock and your fuel bill keeps you up at night, you are exactly who we are built for.

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