Sasol Limited Climate Change Report 2021 - Book - Page 21
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A NET ZERO AMBITION
Our Chemicals Business (CONTINUED)
Chemicals strategy
The Chemicals Business incorporated the
three-pillar emission-reduction framework
as a basis for target and roadmap
development. The business has the
following characteristics that are pertinent
for climate chnage management:
Shifting to sustainable chemicals
Lower- and low-carbon feedstocks serve as the basis for growth of our International
Chemicals Business. Significant growth in our Americas business is backward
integrated into lower CO2 intensity natural gas feedstock, with a facility designed
with best-available emission-control technology. Feedstock flexibility in our
Eurasian operations coupled with a rapidly developing sustainability driven
ecosystem presents an opportunity to pioneer the production of lower-carbon
chemicals. We are currently advancing the development of renewable and circular
drop-in feedstocks in collaboration with our customers and supply partners, which
will support reduction of scope 3 GHG emissions over time. To this end, we are
progressing work to define a scope 3 emissions baseline for our chemicals products.
Many of our chemical products have a number of different applications, each of
which has a different conversion, use and disposal-related emissions profile. This
process is therefore complex to define and requires engagement with our extensive
customer base. Once the baseline is established, we will be in a position to assess
whether a target is required. However, interventions are still being investigated and
implemented to reduce or avoid these emissions through projects and participation
in industry associations, see below.
• significantly lower emissions base;
• able to access renewable electricity
resources;
• newer assets fitted with best available
emission-control technologies already
reducing emissions;
• integrated with lower CO2 intensity
feedstocks, particularly in the United
States;
• able to utilise CCS technologies, which are
being incentivised by the United States
government; and
• expected acceleration and incentivisation
towards net zero emissions, particularly
in the EU.
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We offer Roundtable for Sustainable Palm Oil (RSPO) Certified products
like PARAFOL 14 RSPO- mass balance (MB)1
Partnerships and collaboration with
our customers and suppliers are
critically important to unlock reduction
opportunities, in line with government
requirements.
We identified six primary reduction levers to achieve our 2030 target categorised as part of the
Reduce and Transform pillars. Our 2030 Chemicals roadmap sets the foundation for greater
reductions, using known technologies, on the path to achieve Net Zero by 2050.
We have not included carbon offsetting, except for the use of Renewable Energy Certificates
(REC) in the 2030 time period, with on-site mitigation prioritised. However, should technology
changes not occur at the pace and scale required, we might leverage offsetting to achieve lastmile decarbonisation or greater ambition. Additionally, alternative reduction levers may become
commercially or technically feasible and, if attractive, will be included in our roadmap as we
progress on our journey.
For the Americas, the procurement of renewable electricity through VPPAs allows us to accelerate
ambition toward achieving the 30% target. We are pursuing the usage of RECs, which offset CO2
related to electricity imported from the local grid. We will maximise our process optimisation
efforts, as well as connection to local CCS hubs in the United States Gulf Coast. We are also
exploring other business opportunities to utilise concentrated CO2 streams for sustainable fuels
and chemicals production, if feasible.
For Eurasia, we will maximise the direct procurement of renewables, as well as process and energy
efficiency improvements. Where possible, we will pursue installation of process electrification
technology. CCU is also a possibility and will be implemented, if feasible.
There are a number of key enablers that support the achievement of our targets. From a
technology perspective, access to affordable and sufficient renewable electricity in our operating
regions is essential in the near term (to 2026) and supports process electrification in the medium
term. We continuously monitor renewable power developments and seek to exploit these
opportunities as they arise. In the near to medium term, CCUS technology development will be
key. In this respect, Sasol’s FT technology offers a potential solution to utilise CO2 streams.
The evolving policy and regulatory landscape, funding opportunities and collaborative
partnerships will shape our roadmap development to 2030.
Progressing our roadmaps
We are already taking our first steps towards the
implementation of our roadmaps. Our Brunsbüttel facility
has been utilising low-carbon biomass-derived steam
since 2014. We are in negotiations with the supplier
to significantly increase biomass-derived steam and
have also entered into PPA negotiations with wind
power producers in the vicinity of Brunsbüttel. The
official opening of the NordLink undersea power cable
between Norway and Germany, in May 2021, represents a
milestone in international energy collaboration. This
623 km cable enables the exchange of renewable
electricity between the two countries. We are actively
trying to leverage this unique opportunity in close
proximity to our Brunsbüttel facility to accelerate scope 2
emission reductions.
Hydrogen is expected to play a critical role in achieving
our Net Zero ambition. In Italy, Sasol Chemicals and
Sonatrach Raffineria Italiana have formed a Temporary
Association of Companies to collaborate on developing
hydrogen production projects in Sicily. The Polytechnic
of Turin is conducting a feasibility study on the use of
CCUS technology in the industrial processes of the two
production sites at Augusta, Sicily in Italy on behalf of the
partners. An application for funding support is planned
for the end of the calendar year.
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Sasol Climate Change Report 2021
1.PARAFOL 14 RSPO-MB is a high pure paraffin produced from oleochemical resourced under RSPO-MB
requirements. It is a clear, colourless liquid. PARAFOL 14 RSPO-MB is a very light and highly spreading
emollient and a readily biodegradable alternative to D5 silicone oils.
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International Sustainability and Carbon Certification
(ISCC) of the Marl site for Renewable Ethylene
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Industry Associations (ACC, Cefic, CAIA )
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Sasol Steering Member
of the Hydrogen Council