Sasol Climate Change Report 2022 - Book - Page 27
INTRODUCTION
OUR FUTURE SASOL STRATEGY
RISKS AND OPPORTUNITIES
GOVERNANCE
DATA AND ASSURANCE
DECARBONISING OUR OPERATIONS (CONTINUED)
Progressing our emission-reduction roadmaps (continued)
REDUCE, TRANSFORM and SHIFT
By 2050, we anticipate that between three to five million tons per annum of green hydrogen will be exported from Southern Africa. Green ammonia is likely to be the first derivative
to lead the export demand due to ease of transportation. Local demand for green hydrogen, SAF and sustainable chemicals is anticipated to be around three million tons per annum.
Green ammonia and methanol
Fuel cell electric vehicles
• We are investigating a diversified portfolio of green
hydrogen products – including green ammonia and
green methanol – initially targeting export markets but
ultimately seeking integration with local supply. The
outlook for the green hydrogen market is uncertain
with some studies suggesting it could reach over
660 Mtpa by 2050, with green ammonia expected to
comprise ~20% of this demand, for use in chemicals
production, shipping fuel, power generation and as a
hydrogen energy carrier.
GREEN AMMONIA
AND METHANOL
for export as energy
carrier or end-use and as
ocean shipping fuel
• Sasol signed an MoU with the Port of Rotterdam
(Netherlands) to jointly investigate the opportunity
to establish a corridor for green hydrogen and its
carriers, produced in Southern Africa (see Boegoebaai
page 30). We are currently undertaking technoeconomic investigations into ammonia cracking,
bunkering and other market-related initiatives in
partnership with third parties.
for fuel cell electric
vehicles in heavy
mobility
• We have progressed green hydrogen for heavy
mobility projects, supported by repurposing our
existing chlor-alkali unit in Sasolburg to produce green
hydrogen. We have finalised a joint co-operation
agreement with the South African Industrial
Development Corporation (IDC) and took FID
in March 2022.
SASOL’S PRIORITISED
END-USE
APPLICATIONS FOR
GREEN HYDROGEN1:
GREEN HYDROGEN
in power
and heat generation
• Green methanol can be used to decarbonise oil-based
feedstocks in the chemicals industry and as fuel for
long-haul ocean shipping. We expect green methanol
to penetrate the shipping industry first, with green
ammonia demand, as shipping fuel, ramping up over
time. Sasol is in discussions with shipping lines, ports
and traders to jointly unlock the shipping fuels market
for green ammonia and green methanol.
GREEN HYDROGEN
• Sasol is playing a leading role in co-creating and
developing the hydrogen mobility ecosystem and hubs
in Southern Africa, with targeted customers including
fleet owners, mines, the heavy-duty transport sector,
municipalities and local governments. Our initial
focus is on providing green hydrogen refuelling
infrastructure.
GREEN HYDROGEN
• Sasol entered into a strategic partnership with a large
vehicle manufacturer, who is aiming to deliver its first
fuel cell electric passenger vehicle to South Africa in
the first quarter of 2023.
for green steel
production
SAF
for air transport
Green hydrogen in power and heat generation
SAF
Green steel
• Sasol entered into an MoA with the Gauteng
Department of Economic Development (GDED) in
South Africa to scope several catalytic green hydrogen
projects, including hydrogen mobility, green steel, SAF,
large scale embedded generation and the setup of
micro-grids within the Gauteng province.
• This involves conceptual design of smart mini-grids,
including development and demonstration for
mixed-use energy solutions at industrial, commercial
and residential buildings in Gauteng. Sasol will be
supporting GDED with hydrogen assumptions (volumes,
location and price) for techno-economic evaluation.
• The use-case for SAF is accelerating following recent regulatory changes in blending mandates and net zero
commitments. The EU and the International Air Transport Association (IATA) have committed to net zero for the
airline sector by 2050, with blending mandates introduced as early as 2025.
• Sasol is working with the steel industry to investigate
the production of green steel. The decarbonisation of
the this industry, using Sasol’s bulk green hydrogen,
also has the potential to unlock an opportunity to
capture and utilise CO2 from steel production in our
FT process as a sustainable carbon source.
• Sasol is aiming to be a best-in-class low-cost scale producer of SAF using our existing assets (page 25). Through the
HyShiFT project, we want to progressively integrate sustainable feedstocks into Secunda and produce ~50 000 tons
per annum of SAF for the EU market, potentially avoiding up to half a million tons of CO2 per annum.
• Sasol ecoFT is expanding their partnership portfolio with several projects agreed (see page 29).
1. We are initially targeting the production of green hydrogen products and derivatives that adhere to different standards to certify a product green or sustainable including the South African market
(South African Green Taxonomy), EU (EU REDII and associated Delegated Acts) and voluntary product and taxonomy (Roundtable on Sustainable Biomaterials (RSB) and ISCC) standards.
SASOL CLIMATE CHANGE REPORT 2022 26
