Sasol Limited Climate Change Report 2021 - Book - Page 8
Message from the President and Chief Executive Officer
Innovating for a
We are on a path toward a Net Zero emissions
ambition by 2050 in support of the Paris Agreement.
We are meeting calls for greater ambition by increasing
our 2030 emission reduction target to 30%. We also
have a vision for a fossil-fuel-free Energy Business and
are acting to make this a reality.
President and Chief Executive Officer
Our plan for Future Sasol is to be sustainable, focused, streamlined and successful. To achieve this, we are undergoing a
just transition to achieve an ambition of Net Zero emissions for our relevant operations by 2050. There is no doubt that this
will be a difficult transformation, but we are rising to the challenge. Key to our success will be what we know best: our FT
technology which we believe will play an important role in delivering a sustainable future. We recognise that partnerships will
be increasingly important as we seek to enhance our competitive position and accelerate our transition through collaboration,
with both the public and private sectors.
In 2021, we sharply increased our scope 1 and 2 2030 emission reduction target for the Energy Business1 from at least 10% to
a 30% reduction and set an additional 30% scope 1 and 2 emissions reduction target for our International Chemicals Business.
Both targets are off a 2017 baseline. We have concrete plans to directly reduce emissions by ~25%, through known, available
technologies. With additional improvements in technology, efficiencies in our process and the introduction of lower-carbon
feedstocks, we are confident that more reductions are possible.
In the past year, we worked hard to chart a course based on
action and tangible proof points. As a result, the 2030 target
and our ambition for Net Zero emissions by 2050 are supported
by clear plans, informed by scenario testing that provides
robustness and credibility.
As a business that largely depends on coal, we are acutely aware
that this reliance cannot continue. We have therefore intensified
our pursuit of sustainable alternative feedstocks, as well as
cleaner technologies. Our International Chemicals Business
has a smaller emissions profile and already uses lower-carbon
feedstocks. However, we know we must do more. This includes
focusing on renewable energy deployment and green hydrogen
To achieve Net Zero means transforming through the use
of green hydrogen and sustainable carbon sources in large
quantities. Today, Sasol Secunda Operations is the world’s
largest producer of grey hydrogen from coal-based feedstocks.
It is this hydrogen-production process that is responsible for
around half our GHG emissions. If we can source affordable gas
soon, we will be able to reduce emissions without delay and
lay the foundation for the use of green hydrogen, once we can
replace grey with green hydrogen on an economic basis.
hydrogen, we are looking to source gas and – where possible –
offset or mitigate these upstream emissions.
We have made good progress with Air Liquide to jointly procure
900 MW of renewable energy for our Secunda Operations of a
total 1 200 MW target. Sasol will procure the remaining 300 MW
for the site by 2030. By directing effort towards renewable
energy usage, we support the growth of the local industry and
its potential for job creation. Through renewable energy, Sasol
is uniquely positioned to use our FT technology to play a leading
role in South Africa’s green hydrogen economy.
We have extensive experience in the production, use and
marketing of grey hydrogen and own and operate FT facilities
that can be used to consume green hydrogen.
Our progress in securing significant supplies of renewable
energy is the first proof point signalling our just transition. The
second is our partnership with Linde, ENERTRAG and Navitas
to bid to produce SAF2 at our Secunda Operations in an auction
funded by the German Federal Government.
We see hydrogen mobility as a real opportunity for South
Africa to decarbonise long-haul and heavy-duty transport, as
well as mining and other sectors where abatement is typically
considered difficult. We aim to provide a comprehensive
sustainable mobility solution through the creation of hydrogen
hubs or an ecosystem as a practical and affordable way to scale
the deployment of hydrogen in the transport sector. To this
end, we are collaborating to jointly develop proof-of-concept
demonstration projects for the green hydrogen mobility
ecosystem in South Africa, including the main freight corridor
between Durban and Johannesburg. This private-private
partnership is the third proof point in our just transition.
Green hydrogen is not yet cost effective and requires further
progression along the electrolyser and renewable energy
learning curves. However with scale, partnerships and greater
financing opportunities, its affordability can be significantly
improved. As our fourth proof point, we have partnered with the
Industrial Development Cooperation (IDC) which – like Sasol –
aims to develop and shape an enabling environment to advance
South Africa’s green hydrogen economy. The country has all
the key ingredients to play a prominent role in the global green
hydrogen economy. We are also working to establish a publicprivate South African Energy Council to remove barriers and
accelerate low-carbon technology deployment.
In South Africa, a clear national vision and just transition plan
is needed, enabled by sound policy, requisite financing and
partnerships. We are an active participant in the National
Business Initiative (NBI) and Business Unity South Africa’s
(BUSA) first-of-a-kind analysis of the most optimal just
transition pathway for the country to aid in the development
of this plan. In addition, this work aligns with our own findings
regarding net zero pathways and the importance of green
hydrogen to us all. There is no doubt that the transition is a
national and global imperative. We are acutely aware of the
country’s developmental challenges and these must be a key
consideration in the discussion and plan for a just transition.
Sasol’s journey to decarbonise our operations is guided by our
purpose "Innovating for a better world". We are invigorated by
the potential opportunities presented by the transition and look
forward to making a difference together.
Greater use of gas is indeed a critical step in the transition away
from coal. However, some of our stakeholders are opposed to
this because it is a fossil fuel and – although it emits far less
carbon than coal - it has upstream emissions. In our transition
to using more renewable energy as a prerequisite for green
Chief Executive Officer
20 September 2021
2.SAF is a drop-in sustainable alternative to fossil jet fuel, requiring no change to
existing aircrafts or supporting infrastructure, produced using the FT technology.
Sasol Climate Change Report 2021