Sasol Climate Change Report 2022 - Book - Page 23
INTRODUCTION
OUR FUTURE SASOL STRATEGY
RISKS AND OPPORTUNITIES
GOVERNANCE
DATA AND ASSURANCE
IMPLEMENTING THE FUTURE SASOL STRATEGY (CONTINUED)
Sasol Energy
Sasol Chemicals
Sasol ecoFT
Sasol Energy aspires to be a leader in the energy transition in
Southern Africa. Our strategy addresses the following broad themes:
Sasol ecoFT has been applying an entrepreneurial culture
and mindset to:
• customer centricity;
Our global Sasol Chemicals business is organised into three
customer-focused regional operating segments – Africa,
North America and Eurasia – supporting four business divisions:
• changing energy landscape to low-carbon alternatives;
• Advanced Materials;
• Sasol’s competitive advantage and core strengths;
• Base Chemicals;
• strategic areas for focus; and
• Essential Care Chemicals; and
• capabilities, skills and resources needed to successfully execute
on our strategy.
• Performance Solutions.
We anticipate that the energy transition will affect Sasol’s current
value pools, but recognise that it also presents new growth
opportunities in areas where we believe we have the right skills,
technology, capabilities and assets to be competitive, particularly in
the growth of green hydrogen. Globally, green hydrogen demand is
expected to be at least 660 Mtpa by 2050.1 The projected export
opportunity from South Africa is about three to five million tons per
annum.2 South Africa is well positioned to be a green hydrogen player,
well-endowed with resources to establish an export market and
geographically well-positioned as a hedge market, with solid global
trading partnerships. After careful evaluation, we made several
strategic choices. To grow value and decarbonise our South African
operations, we prioritised opportunities and partnerships for FT green
hydrogen and related low-carbon opportunities (see pages 29 – 30).
Green hydrogen, large-scale renewables and sustainable carbon
sources are central to our fossil-fuel-free vision and eliminating
scope 1 and 2 emissions for the Secunda site.
We are transitioning to low carbon feedstocks and accelerating and
diversifying gas supply from Mozambique and other potential sources
of gas, including LNG. While green hydrogen is still prohibitively
expensive, gas remains a key transition fuel to achieve significant
emission reductions in the decade of climate action to 2030.
True to our purpose, we are advancing mobility solutions for our
customers and offering sustainable fuels to support customer needs.
We are co-creating and developing hydrogen mobility ecosystems and
hubs in Southern Africa.
Our unique chemistry and technologies, market leading positions
and integrated value chains are the foundation for future growth.
These include our high purity aluminas and the broadest portfolio
of integrated alcohols and surfactants in the world, which are used
in cleaning, personal care, cosmetics, pharmaceuticals and a range
of industrial applications.
As we approach the conclusion of the Sasol 2.0 transformation
programme and full commercial ramp-up of LCCP, we have set our
sights on transforming the business into a solutions provider. This is
aimed at building our competitive advantage, differentiated chemistry
and market leadership positions, with a distinct focus on sustainability,
circularity and specialties. In 2022, we focused on implementing the
2030 emission-reduction roadmaps for Eurasia and North America, as
well as the development of lower-carbon solutions with our customers.
Renewable energy is critical to attaining our GHG targets. Accordingly,
we entered into several PPAs for our German and Italian sites, as well as
a supply agreement for the provision of CO2-neutral biomass-based
steam for the Brunsbüttel site in Germany. We anticipate achieving full
commercial implementation of purchased renewable power for North
America and Europe in 2026. We are also making progress on the first
sales of certified bio-ethylene through our partnership with Holiferm.
The partnership aims to develop and market lower-carbon intensity
biosurfactants.
Our commitment to support the end of plastic waste and develop
circular solutions has advanced through our funding – in partnership
with the Alliance to End Plastic Waste (AEPW) – of a plastics recycling
demonstration project in South Africa. We are also exploring options
for chemical recycling of plastic waste to create circular feedstocks for
our facilities. Through delivery and scale-up of these actions and others,
we expect to sustainably grow and transform this business.
1.Hydrogen Council, Nov 2021.
2.Sasol and BCG Analysis.
SASOL CLIMATE CHANGE REPORT 2022 22
• appropriately resource the business with the right skills
and experience supported by leadership and other teams;
• develop collaborative partnerships with both public and private
sectors to enhance our competitive position and accelerate
the transition;
• broaden and secure key partnerships to close identified
capability and value chain gaps; and
• build an attractive venture pipeline, with long-term partners to
position our SAF technology offering in selected geographies.
We aim to advance some of our pre-feasibility opportunities to
demonstration scale. By doing this, we can test the full Power-to-X
(PtX) integrated ecosystem. We are also developing a go-to-market
and product monetisation offering. We believe that after 2030 we
would be able to derive significant value from our equity positions,
catalyst sales, technology licensing and technical services.
Sasol ecoFT is growing in phases:
• setup (2021 to 2025);
• start-up (2025 to 2030);
• ramp up (2030 to 2040); and
• progressing to a mature phase beyond 2040.
During the initial phases we plan to take only small equity positions in
demonstration or pilot plants to mitigate technology integration and
business risk. As the regulatory landscape matures and the capacity
to build these plants increases, we anticipate that the number of
plants we will be involved in will grow from an initial two to three
per year to more than five.
