Sasol Limited Climate Change Report 2021 - Book - Page 23
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A NET ZERO AMBITION
Establishing an FT sustainable solution business: Sasol ecoFT
FT technology has exceptional potential in a lowcarbon future. It is agnostic to feedstock and can
produce both fuels and chemicals with net zero
emissions through renewable energy and sustainable
carbon sources. GHG emission reductions in the
road transport sector are expected to come from
electrification and hydrogen fuel cells. However, air
transportation will be much more difficult to abate.
Policy and industry’s efforts have led to efficiency
improvements in aviation (for example fuel burn per
passenger has dropped significantly over the past
20 years) but these benefits have been outpaced by
the sustained growth in air traffic.
As a result, emissions from this sector have risen
rapidly over the past two decades, reaching ~1 Gt in
2019, or ~3% of global GHG emissions. Furthermore,
with the number of aviation passengers expected to
double by 2050, unabated emissions will continue to
rise contributing to climate change. This is where SAF
becomes critically important for the aviation sector to
also meet expected global climate targets.
Fischer-Tropsch-based PtX process
H2o
Renewable energy
Water
Electrolysis
Alternative sustainable carbon
feedstock
• Develop other key partnerships in selected value plays to close value
chain and capability gaps;
• Advance catalytic PtX projects with preferred partners in attractive
markets;
Carbon source
(eg biogenic, unavoidable CO2 DAC)
RWGS
Sustainable products
Syngas
FT synthesis
Existing Sasol
FT technologies
and technologies
from partners
Advocacy for green hydrogen
Hydrocracking
We have a strong
track record
in synthetic jet fuel
production
1991
1999
2008
Sasol begins
pursuit of
synthetic
jet fuel
production
Received
certification
for semisynthetic
jet fuel
2010
Received
Powered the
certification
world's first
for our fully
passenger
synthetic
flight with
jet fuel
fully synthetic
jet fuel
Today
We are a global
leader in
synthetic jet fuel,
supplying semisynthetic jet
fuel locally over
the last decade
Having pioneered the adoption of synthetic jet fuel, Sasol is also the global leader in
developing, certifying, producing and marketing synthetic jet fuel, which prepares us for
the SAF opportunity.
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• Generate a pipeline of project opportunities with partners expressing
an interest in developing PtX projects with Sasol and Haldor-Topsøe
and Technip Energies beyond demonstration units; and
• Advance monetisation offerings across licensing, catalyst sales,
specialised technical services and equity positions in PtX value chains.
Fuels (ie SAF)
Chemicals
Sasol's unique FT technology is deployed at scale in Africa, the Middle East and Eurasia representing
the largest installed capacity of this technology in the world. We have over 70 years of innovation and
operational experience on our side to exploit the PtX opportunity to deliver higher yields at lower costs.
Leveraging strong partnerships is a critical lever and in this instance, our relationship with Haldor-Topsøe
(for Syngas production and Hydro Processing technology) and Technip Energies (Licensor Support Engineer)
positions us well to develop a successful PtX business. We will leverage our advantages to continue to
innovate and provide world-class technical solutions.
SAF is a drop-in sustainable alternative to fossil
jet fuel, requiring no change to existing aircrafts
or supporting infrastructure. Sasol’s FT process is
particularly well-suited to produce SAF.
• Establish key leadership positions and strengthen technology
partnerships;
• Update the PtX product portfolio offering (including most recent
technology developments);
E-crude
What is Sustainable Aviation Fuel?
CO2
+
We have mobilised an entrepreneurial team to pursue PtX
ventures globally and within the next 12 months, we plan to:
Sasol Climate Change Report 2021
An enabling and conducive policy environment is critically important
to mainstream the use of green hydrogen and associated products.
Benchmarking and other studies indicate that countries with a clear
vision for hydrogen have been able to accelerate its deployment and
position competitively. In the same vein, the South African government
and private sector are working together to put in place the key building
blocks for green hydrogen. Government through a presidentially
constituted Hydrogen Panel are progressing the development of a
national green hydrogen strategy.
At a global level, Sasol is participating in the 'Fit for 55' European Union
policy commenting process. We are exploring options for product
certification and engaging stakeholders to ensure market readiness for
placement of FT sustainable fuels and chemicals.
There are technologies other than PtX to produce SAF from renewable
sources, such as waste biomass or used oils. While these technologies are
prevalent, supply is limited with SAF making up less than 1% of total global
jet fuel demand. Furthermore, a limit exists on the amount of SAF that
can be produced from biomass and oils given land availability constraints,
competing food priorities and water usage concerns. Emissions from these
processes are also not fully compatible with a net zero emissions future.
On the other hand, the PtX process is fully compatible with a net zero
emissions future as it allows for 100% CO2 emission reductions. Currently,
it is a more costly technology option relative to oil and biomass1. However,
these costs are expected to decrease rapidly this decade on the back of
technology advances and manufacturing commoditisation, which will make
the PtX process more cost competitive. Furthermore, it is not constrained by
feedstock limitations and can supply the significant global jet fuel projected
demand of ~7 million barrels per day. SAF is therefore likely to be one of the
first and most attractive sustainable applications for Sasol's FT technology.
This represents an exciting growth opportunity for us.
The recent EU Commission announcement on proposed SAF blending
mandates from 2025 is setting the pace for transformation in the aviation
fuel industry. The FT sustainable solutions business is well positioned in this
regard.
1. Based on literature reviews including those documented by the
European Commission relating to sustainable air transport.