Sasol Limited Climate Change Report 2021 - Book - Page 17
1
2
3
4
A NET ZERO AMBITION
Our Energy Business (CONTINUED)
Demonstrating credibility of our roadmaps
The 2021 Net Zero IEA Roadmap for the energy sector highlights that more than 50% of the reductions will come from technologies yet to be developed
and commercialised. Therefore, it is imperative that emissions are reduced at source in the short term, while action is taken to develop and mature future
technologies.
Net zero requirements recommend an assessment of current and expected technologies, where real opportunities for reductions are prioritised in the
earlier years. This principle was applied in developing our long and medium term roadmaps. We are accelerating our plans in the period to 2030 because
of current understanding relating to technology uncertainties in the long term.
For 2050, we assessed multiple possible pathways to Net Zero, including combinations of CCUS, green hydrogen, sustainable carbon feedstocks, largescale renewable energy and decommissioning of value chains. The choice of pathway will depend on how technologies mature. Regardless of the choices
made, Net Zero is still the end state. The preferred pathway for Sasol is large-scale green hydrogen and renewables. We developed fall-back approaches
that look to natural gas with CCUS and offsets, and as a last resort, closure of unviable value chains (turndown), should technology options not
materialise. Particularly in South Africa, levers are not at the requisite scale or commercialised. Sasol is playing an active role to unlock and commercialise
some of these technology options. Leaning on guidance provided by the United Nations in its blueprint for setting a Net Zero ambition, we have detailed
actions that demonstrate credibility and commitment to technology development to achieve Net Zero (see page 17). These include:
• Communication on the feasibility of identified technologies to achieve Net Zero;
• Communication on the uncertainty of future technology solutions and its development; and
• Our plans to address these uncertainties.
Specific attributes of our 2030 roadmap:
Specific attributes of our 2050 roadmap:
1. Does not rely on unknown technologies
1. Prioritises on-site mitigation
2. Prioritises on-site mitigation
2. Sets absolute reduction targets
3. Sets absolute reduction targets
3. Clearly identifies short and medium term milestones and deliverables
4. Clearly identifies short term milestones and deliverables
4. Addresses scope 1, 2 and 3 (Category 11) emissions
5. Addresses scope 1, 2 and 3 (Category 11) emissions
5. Does not use Avoidance/Reduction (A/R)1 offsetting (see pages 27 - 28)
6. Does not rely on offsetting to meet targets; well-vetted
offsets could be considered if mitigation measures
are unsuccessful
6. Plans include nature and technology-based CDRs to neutralise residual
hard-to-abate emissions
7. Not directly dependent on the independent actions
of others to meet our targets and cost effective mitigation
options have been prioritised
7. Indicates and addresses technology maturity and uncertainty through
proof points that demonstrate active involvement in encouraging
technology development and economic viability
Corroborating and assuring our roadmap
NBI/BUSA Climate Pathways Study
IHS Markit Hydrogen Study
Deloitte & Touche
Sasol has been participating in a BUSA, NBI and Boston Consulting Group national study
to determine optimal 2050 pathways for key emitting sectors in South Africa.
IHS Markit concluded an independent fact-based study to test how green hydrogen
feasibly supports South Africa's transition to net zero by 2050. The analysis included
Sasol's operations and showed that multiple economic drivers modelled, support the
progressive decarbonisation of our plants using green hydrogen.
Assurance of the on-site reduction of emissions in line with Sasol’s GHG
roadmap reduction calculation and reduction targets was undertaken
by Deloitte & Touche. Using the International Standard on Assurance
Engagements 3000 (Revised), the evaluation included the following:
• Understanding the control and reporting process and environment;
• Assessing the governance structure for the implementation of the roadmap;
• Assessing the methodology for suitability and appropriateness;
• Assessing the business strategy for the roadmap; and
• Assessing on-site projects necessary to achieve the roadmap.
This independent study arrived at similar decarbonisation pathways utilising green
hydrogen and transition gas for the petrochemical sector (ie Sasol).
For the petrochemical sector, the net zero pathway with least cost and minimal socioeconomic impacts was found to be a combination of green hydrogen, renewable energy
and DAC. A turndown pathway was also assessed. However, the negative socio-economic
impacts far outweighed the reduction benefit achieved by reaching net zero this way. We
used this study and its findings to validate our internal roadmap development work and
fossil-fuel-free vision.
The assessment indicated that "Nothing has come to our attention to indicate
that the roadmap, in all material respects, is not fairly stated."
1. Reducing emissions from fossil fuel sources using lower-carbon technologies without storage.
16
Sasol Climate Change Report 2021
It also showed that this can be done profitably while markedly reducing emissions. This
supports our own findings, particularly the benefits relating to employment across
direct, indirect and induced categories.
In principle, our Secunda plant was found to compete with greenfield FT plants, which
come with extremely high capital costs. It also highlighted that Sasol has a major cost
advantage for SAF production from existing Synfuel assets.