Sasol Integrated Report 2024 - Book - Page 77
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
BUSINESSES
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
ENVIRONMENT continued
CLIMATE CHANGE
continued
Programmes and Initiatives
Since 2021, we have taken a climate-risk view which has evolved into an approach grounded in value creation.
Having paused to reassess our strategic opportunities and having listened to stakeholders, we have come to
realise that many opportunities exist for us to exploit our capabilities in the areas of renewable energy and
sustainable carbon. Our well-honed capabilities hold the key to unlocking future value creation opportunities,
while ensuring our existing operations are stable and reliable today and into the future.
Courtesy: African Clean Energy Developments (Pty) Ltd (ACED)
Right to win
Gigawatt renewable energy growth
In this context, we consistently evaluate our competitive advantages
in those areas in which we believe we have a “right to win”.
Our rationale is premised on the ability to turn our competitive
advantages in terms of size, markets, infrastructure, technology
and people, into successes in a financial and sustainable way.
Sasol is at the forefront of South Africa’s renewable energy
revolution, harnessing the power of sustainable resources to meet
our decarbonisation goals and drive significant growth. With a bold
vision, we aim to secure 1,200 MW of renewable energy by 2030,
making us one of the top private renewable energy buyers in South
Africa. Our journey includes 757 MW in PPAs, 688 MW of which is a
collaborative effort with Air Liquide.
There are several newly emerging areas of interest to Sasol,
including renewable energy, biomass and gas.
Sasolburg asset transformation
Our Sasolburg facility stands as a beacon of innovation, with our
cutting-edge Fischer-Tropsch (FT) technology at its core, capable of
producing both fuels and chemicals seamlessly. This technology’s
versatility allows for the use of alternative, non-fossil fuel
feedstocks, cementing our edge in the market. Our strategic
initiatives focus on early-stage pilots and the transformation of
Sasolburg for future needs.
In June 2023, we produced our inaugural batch of green hydrogen
at Sasolburg, utilising a repurposed chlor-alkali electrolyser and
solar power from our on-site 3,37 MW plant. The development of a
69 MW wind farm is on track; through this we are aiming to scale
production to 3,5 tons per day of green hydrogen by October 2024.
Our commitment shines through the Sasolburg Operations’ green
hydrogen initiative, supported by 69 MW wind energy and a
3,37 MW solar photovoltaic (PV) facility. This project, operational
since June 2023, showcases the potential of on-site renewable
generation, a strategy we are expanding across our properties.
Our dynamic procurement programme, coupled with our self-build
embedded generation project, has injected vital momentum into
our business-building strategy, paving the way for bold future
investments in clean energy.
Looking ahead, the 69 MW Msenge wind farm will
be operational by October 2024, while the 97,5 MW
Damlaagte solar project and the 330 MW Impofu
wind cluster have already achieved financial close.
We are pioneering green hydrogen mobility in South Africa.
October 2023 marked the launch of the nation’s first hydrogenpowered road transport ecosystem demonstration, featuring the
Toyota Mirai. This was followed by a tripartite agreement with Anglo
American Platinum and BMW Group South Africa to showcase the
hydrogen-fuelled BMW iX5 prototype, a venture that debuted in
February 2024 alongside the Global Hydrogen Council summit.
As the energy landscape evolves, Sasol continues to actively
collaborate with Eskom and other key role players to shape the
future of South Africa's electricity market.
Concurrently, we are reimagining Sasolburg’s role by integrating
bio-based feedstocks into our operations to yield eco-friendly
products like bio-methanol and renewable diesel. Sasolburg is
poised to become the springboard for sustainable innovations,
setting the stage for similar advancements at our Secunda facility.
Last year, Sasol successfully completed a pivotal pre-feasibility
study, demonstrating the Boegoebaai project’s potential as a
game-changer in green hydrogen and ammonia export. This venture
stands on the cusp of technical and economic breakthroughs,
with strategic partnerships being the cornerstone of success.
Green hydrogen and ammonia
¹ Refers to the rules and guidelines that govern how electricity is generated, distributed and traded in South Africa.
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To propel this initiative into a global leadership position, Sasol
has joined forces with Mizuho International plc, embarking on
a quest for like-minded investors to bring this vision to life. In 2021,
Sasol’s foresight in signing a Memorandum of Agreement with the
Northern Cape government set the stage for the region to emerge
as a green hydrogen export powerhouse. In December 2022, the
Boegoebaai Green Hydrogen Programme was designated as a
Strategic Integrated Project (SIP), supported by Sasol’s participation
and the unveiling of the Northern Cape Green Hydrogen Masterplan
in October 2023. The recent designation of the Namakwa Special
Economic Zone (SEZ), in May 2024, marked a strategic milestone.
It is paving the way for the Boegoebaai SEZ application, as well
as igniting the potential transformation of the Northern Cape into
a hub for the burgeoning Green Economy.
Sustainable carbon
In the near term, bio-feedstocks are a key transition feedstock
for our operations, reducing GHG emissions and allowing us to
produce low-carbon products like renewable diesel and biosustainable aviation fuel (SAF) through co-processing.
While sustainable feedstocks are limited in the region, Sasol is
committed to developing robust supply chains that ensure
accessibility to these vital resources. Sasol is exploring diverse
sources including invasive species, agricultural waste and
recycled cooking oils. Moreover, Sasol is pioneering the growth
of energy crops on previously degraded lands, such as those
affected by mining.
Sustainability remains a priority as we venture into bio-based
resources. We are dedicated to holistically assessing the
sustainability of our bio-based and related value chains.
This includes the consideration of land, air, water, food security
and biodiversity management, all while adhering to stringent
sustainability standards set by international certification bodies.
