Sasol Limited Climate Change Report 2021 - Book - Page 18
A NET ZERO AMBITION
Our Energy Business (CONTINUED)
Working to unlock technology options
Sustainable carbon feedstocks
Large-scale renewable energy is required to enable Net Zero by 2050 and our fossil-fuel-free vision. As a start to our
journey by 2025, we are looking to integrate 600 MW towards our ~1 200 MW renewables target. Thereafter, we
aim to complete the remaining 600 MW before 2030. This allows us to significantly decarbonise our utility scope 1
and 2 emissions by replacing electricity imports and own generation. Although South Africa possesses some of the
best renewable energy resources globally, it is not possible for us to fully replace our own generation and grid-based
electricity as renewables are not available 100% of the time. We continue to track and monitor developments related
to energy storage that could enable this in the long term. For now our ambition is to replace as much as possible.
Sustainable carbon feedstocks are essential to realise our 2050 ambition.
By progressively incorporating sustainable carbon sources into our
operations, we will be able to gradually decrease our reliance on coal and
transition gas. Sources of sustainable carbon include biogenic, recycled
process CO2 from industrial sources and captured atmospheric CO2. Today the
cost of DAC is not sufficiently competitive for large-scale implementation,
therefore we are prioritising biomass-derived carbon.
Progress to date has been accelerated by our partnership with Air Liquide to jointly decarbonise specific units on
our Secunda site. Two 10 MW solar photo voltaic farms are also being procured for our Secunda and Sasolburg
operations, with a strong focus on the social benefits. The applicable PPAs are likely to be concluded by the end
of 2021. We are on track to have the facilities operational by 2023. In the medium term, we are preparing for
development of renewable electricity projects at scale and on our own to meet our green hydrogen plans.
Small quantities of biomass can be accommodated in our current gasifiers, but
at high percentages will require a new set of gasifiers. Sourcing of biomass
requires further collaboration to achieve optimal land and water use, as well
as addressing logistical concerns. Various opportunities for partnerships to
drive this lever are being pursued and are detailed on page 18 of this report.
Sourcing for transition gas
Sasol sees gas as a transition fuel in the move away from coal. Discussions with respective
governments, including South Africa, continue on potential transition gas for the South African
economy. The benefits of using gas, either pipeline or LNG as a feedstock in Secunda is significantly
better than coal, taking a lifecycle view.
Lifecycle CO2e footprint of coal vs gas
CO2 footprint (MtCO2e)
CO2e footprint (MtCO2e)
LNG storage and shipping
Two major sources of gas are available to Sasol: LNG and pipeline gas. Pipeline gas has a lower
lifecycle footprint but could create stranded assets, resulting in lock-in, particularly if the hydrogen
economy plays out faster. LNG could have a high lifecycle footprint depending on its source but
offers flexibility and less risk of stranded assets.
For our gas-sourcing strategy, we undertook an evaluation of the GHG emissions from each step of
the gas value chain. Importantly, we wanted to understand methane leakage potential, depending
on where the gas was sourced and to find opportunities to mitigate or offset them.
The gas value chain is made up of upstream gas production, processing, transportation and use. We
explored two gas-sourcing routes: LNG and pipeline gas from Mozambique. The analysis found that
sourcing gas from reservoirs low in CO2 and where methane leakage is monitored and minimised, is
critical to reducing value chain emissions. We also found that globally significant strides have been
made to improve operations and reduce methane leakage. On the other hand, pipeline gas supply
showed a lower overall GHG footprint due to a simpler value chain.
Therefore, Sasol’s sourcing strategy for LNG is focused on locations with new or advanced
liquefaction technologies and the latest transportation technology to reduce emissions. We plan
to introduce LNG in incremental amounts, approximately 40 – 60 PJ/a from 2027 onwards. This
will allow us to effectively monitor the green hydrogen and low-carbon technology development
landscape, avoiding infrastructure lock-in but still achieving lower emissions. Gas infrastructure
can also be re-purposed for green hydrogen transport and has been shown to be a competitive
advantage for countries.
CCUS is a collective term referring to a number of technologies not yet
developed at scale. The technologies of relevance to Sasol are CCS and DAC,
both of which are currently prohibitively expensive and not proven in South
Africa. However, across the world costs of these technologies are decreasing
due to enabling policy frameworks and incentives.
In 2021, we issued a Request for Information (RFI), with the intention of
unlocking breakthrough technologies to catalyse cost reductions and utilise
our concentrated CO2 streams. Unfortunately, no breakthrough technologies
or process configurations have been identified to date.
CCS is in its infancy in South Africa. While Sasol has an advantage because
our process CO2 is already captured, we have yet to prove the viability of
storage. The distance of storage sites from our facilities plays a significant
role in influencing the cost and viability of CCS as an option for us. To this end,
we are collaborating with the Council of Geosciences (CGS) and South African
Centre for Carbon Capture and Storage which is focused on long-term storage
of CO2 in geological formations. We are supporting the CGS and the South
African Department for Mineral Resources and Energy on the implementation
of a Pilot Capture and Storage Project. This project aims to understand
the technical feasibility of inland CCS at a demonstration site in Evander,
Mpumulanga by ~2025. We are providing technical data and process CO2 to
enable assessment of sequestration potential at this site.
Carbon Capture, Utilisation and Storage
Sasol Climate Change Report 2021