Sasol Climate Change Report 2023 - Book - Page 30
INTRODUCTION
TRANSFORMING FOR RESILIENCE
GOVERNANCE
CLIMATE ADVOCACY AND POLICY
DATA AND ASSURANCE
ALLOCATING CAPITAL CONTINUED
Coal exposure
Sasol’s major revenue streams emanate from a combination of coal, natural gas and oil-based
derivatives. Over the past five years, the percentage of revenue from coal-derived products was
between 38 – 40%.
Secunda Operations is directly linked to coal and
limited to products within the affected value chains.
This translates to ~90% of liquid fuels and chemicals
produced in Secunda and all export coal. Note that
some chemicals produced in South Africa are from
natural-gas feedstock. No chemicals or fuels
produced outside of South Africa are coal derived.
Stranded assets
In 2022, we provided a perspective on the key
variables that could lead to certain of our assets
becoming stranded. These variables have since
remained unchanged and include:
• the regulatory environment (specifically climaterelated policies);
• technology breakthroughs;
• changes in consumer preferences; and
• physical climate change impacts.
We are able to repurpose existing at-risk assets for
use in a low-carbon future. We continue to advance
our green hydrogen aspirations for the production of
sustainable fuels and chemicals, using our FT
technology through small-scale demonstration
projects in both Secunda and Sasolburg.
The ability to extract additional gas from our gas
fields will provide greater flexibility to avoid regret
infrastructure capital spend on liquefied natural gas
(LNG).
Our Mining Business has experienced operational
challenges and a deterioration in the quality of coal,
which have led to a reduction in productivity.
Uneconomic productivity levels could hasten the
closure of some mines. Despite this, we remain
committed to no investments in new coal reserves,
avoiding a scenario in which these new assets could
become stranded.
In addition, each of our existing mining operations
has active social and labour plans in place which,
when combined with our just transition roadmap,
will assist in supporting efforts for a just transition
(see pages 52 – 55).
We continue to monitor and track the probability of
physical risks materialising in the regions where our
operations are located. Because of adaptation and
emergency preparedness which we continue to
implement, we do not anticipate our existing assets
becoming stranded as a result of physical risks
materialising.
Gas remains a transition feedstock and we have
worked to secure additional reserves, extending the
Mozambique gas plateau by an additional two years.
GRANT FUNDING
In 2022, our Sasolburg green hydrogen pilot project achieved final investment decision (FID) and
was awarded conditional grant funding from the Industrial Development Corporation (IDC)
amounting to ~R23 million. This project demonstrates our green hydrogen capabilities for both
Sasol and the country.
Chemicals plant, Secunda, South Africa
SASOL CLIMATE CHANGE REPORT 2023
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