Sasol Integrated Report 2023 - Book - Page 63
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
CREATING VALUE
PERFORMANCE
GOVERNANCE AND REWARDS
ADMINISTRATION
SASOL ecoFT AT A GLANCE // Developing sustainable aviation fuel ventures globally using our advantaged FT technology
Airline manufacturers and operation alike are
favouring drop-in sustainable aviation fuel (SAF)
solutions with minimum engine and infrastructure
adaptation requirements. Sasol’s Fischer-Tropsch
technology can provide such SAF solutions based
on our proven technology and wealth of project
and operational experience.
STRATEGIC FOCUS
Marius Brand // Executive Vice President: Sasol 2.0 Transformation
We are committed to accelerate our
transition to a low-carbon world in support of
the objectives of the Paris Agreement and our ambition
to achieve net zero* emissions by 2050.
Overview
Our 70-year-old institutional knowledge in applying Fischer-Tropsch (FT)
technology to produce synthetic fuels and chemicals can provide sustainable
aviation fuel (SAF) solutions that have exceptional abatement characteristics as
well as feedstock adaptability, and in the future can be produced from almost
unlimited sustainable feedstocks as renewable energy costs are expected to
become increasingly more competitive.
We are driving our intention to produce low-carbon fuels
and chemicals globally through Sasol ecoFT. This will help
us build sustainable businesses and leverage our
advantaged FT technology.
The global power-to-X (PtX) market, which is a combination of power-to-liquids
and power-to-chemicals technology, is developing rapidly through increasing
demand for SAF. It presents a global growth opportunity as power-to-liquids is
likely to be one of the first and most attractive applications of our FT technology.
Sasol ecoFT’s focus is to develop, build and operate
assets that produce SAF and market the products globally.
We are driving efforts to maximise catalyst yields
and maintain operational efficiencies of our complex
integrated facilities.
Our FT technology has scalable potential as it provides solutions in hard-toabate sectors. Having led the industry in large-scale FT technology applications,
we are well positioned to succeed in the emerging SAF market. We will do this
by providing differentiated solutions across the globe and playing a key role
in the defossilisation/decarbonisation of the aviation industry. This, as drop-in
aviation fuels are deemed to be the preferred long-term energy solution for
long-distance flights.
By reinforcing strong value chain partnerships, we
aim to deliver value through licensing our FT technology.
OUTLOOK
Operating context
Sustainable aviation fuel is seen as an essential lever in the decarbonisation of
the aviation sector. Globally, considerable advances have been made in providing
the enabling policy and regulatory environment for SAF.
The production costs for sustainable fuels
and chemicals will remain higher than existing
alternatives. As a result, financing will be a challenge
and fuel producers will need public funding in the initial
phase of developing the industry if they are to meet
future demand. Initially, the emerging industry will rely
on legislated blending mandates and grant funding
from governments, although country-specific CO2
commitments and regulatory frameworks are driving
demand for both sustainable fuels and chemicals.
The European Union is setting standards through its renewable energy directive
(RED) and SAF-specific policies like ReFuelEU, which specifies SAF blending
mandates and tax penalties for fossil jet fuel use.
These standards could influence global regulatory guidelines and mandates.
Sasol participates in policy consultation platforms in the European Union,
United States, United Kingdom and Canada. These advocate for a level playing
field that will allow more SAF solution providers to participate in the fast
developing global SAF market.
In the United States and European Union the level of ambition for the reduction
of greenhouse gases in the aviation transport sector is favourable for Sasol
ecoFT’s feasibility project studies.
* Net zero for Sasol is to significantly reduce emissions to the point where only hard-to-abate emissions remain or are zero. Any residual emissions will be neutralised
using carbon dioxide removal offsets
SASOL INTEGRATED REPORT 2023
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