INTRODUCTIONRISKS AND OPPORTUNITIESOUR FUTURE SASOL STRATEGYGOVERNANCEDATA AND ASSURANCEIMPROVING OUR EMISSIONS REPORTING (CONTINUED)Methane measurement and reporting at our South African OperationsStudies on Pande-4 wellThe well is under close observation through the Pande-4 remediation project with theSasol Mozambican team conducting regular monitoring and implementing controlsto manage the issue. Today, water and small quantities of methane continue beingreported in the surface area surrounding the well. As part of our PPA Concession,we have an obligation to keep the Mozambican regulator informed of any substantialchanges or events relating to the Pande-4 site. We have been doing so for a numberof years and have an agreement with our partners and government to continuemonitoring and reporting on the well until a feasible solution to manage the releaseof methane is found. The situation remains under control.Methane emissions from our Secunda and Sasolburg Operations are determinedby measurement and mass balance calculations. These emissions have been fullyaccounted for in our disclosed inventory and are being managed through our 2030,30% GHG reduction target and the emission-reduction roadmap. Methane emissionscomprise a significantly smaller portion of our GHG profile, which is dominated by CO2.Evaluations and assessments are underway to determine an accurate emissionsbaseline and develop interventions to mitigate the release of these emissions. Dueto subsurface and geographic complexities associated with the well, there are limitedavailable methodologies to accurately quantify these emissions. Challenges alsoexist as a result of trying to measure a small quantity of emissions that diffuse over alarge area around the well. Satellite monitoring data through GHGSat was employedto determine a preliminary baseline with an inherent methodological error marginof 45%. Initial estimates show that emissions could be between ~150 – 400 ktCO2e.We are supplementing this approach with additional activities such as on-site weathermonitoring to create more accurate data models and reduce the error margin.Sasol follows the mandatory South African government’s GHG reporting regulations,which require the use of the 100-year methane global warming potential (GWP) from theIPCC’s Third Assessment Report. Recent studies are highlighting the use of the 20-yearmethane GWP because the gas is short-lived and has a higher potency in a shorter-spaceof time as compared to CO2. We are monitoring developments on this emerging issue.Sasol continues to engage withspecialist companies, individuals andacademic institutions to develop a betterunderstanding of this emission source andthe mechanics of methane emissions fromthe well. A specialist company has beenappointed to evaluate the viability of asurface capture and containment solution,collect additional data (including satellitemonitoring of methane emission locationsand rates, as well as InSAR monitoring ofsurface deformation) and to build a 3Dmodel using high resolution 2D seismiclines. In parallel, using other expertise,plausible scenarios will be generateddetailing possible reasons for the ongoingmethane release. A subsurface model islikely to be available in 2023, at whichpoint effective and efficient managementinterventions will be assessed. We willcontinue reporting on progress asinformation becomes available.To calculate methane emissions, we measure and analyse the composition of our ventsto determine the percentage volume of methane. Flow rates are measured andconverted to a mass flow and reported accordingly for each entity that emits methane.Management of our methane emissions is included in our scope 1 and 2 absolute reductiontarget of 30% by 2030, as well as our scope 3 emissions reduction target negating theneed for an explicit methane target, however we continue to monitor the landscape.In this reporting year, methane emissions comprised 4,9% of our total scope 1 and 2emissions on a CO2e basis.SASOL CLIMATE CHANGE REPORT 2022 12
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