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Sasol triples its goal of reducing greenhouse gas emissions

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SASOL, the JSE-listed petrochemical giant, is tripling its goal of reducing Scope 1 and 2 greenhouse gas (GHG) emissions by 2030, from an initial 10% for its operations in southern Africa, the company announced. last year, at 30% for energy and chemical activities. , compared to a 2017 benchmark.

Sasol, South Africa’s biggest polluter after Eskom, aims to be net zero by 2050. The group said that by 2030, around 10 to 15 percent of all capital would be spent to achieve these GHG reduction targets, and after 2030, more of the capital, to achieve the net zero ambition.

Speaking to investors on the virtual capital markets day, Managing Director Fleetwood Grobler, said Sasol had concrete plans to directly cut emissions by 25%, using known and available technologies.

“With further improvements in technology, the efficiency of our process and the introduction of low carbon raw materials, we are confident that more reductions are possible to reach the 30% target,” he said. -he declares.

Grobler said that, based on detailed assessments and modeling, this ambitious goal can be achieved without divestments or offsets, but through the direct decarbonization of our existing assets.

“This will be done through a combination of energy and process efficiency, investments in renewable energy and an incremental shift to natural gas as a transitional feedstock for our Southern African value chain,” a- he declared.

Sasol said that in the short to medium term, the first phase through 2025 focuses on strengthening its balance sheet, while improving cost competitiveness and the ability to increase cash flow generation in a price scenario. low oil. The group aims to improve the return on invested capital (RIOC) between 12 and 15% during this period.

The second phase in the short and medium term up to 2030 prioritized balancing returns and investment in Sasol’s transition plan.

CFO Paul Victor said that during this period until 2030, Sasol plans to invest between R20 and R25 billion per year to maintain its asset base, comply with all relevant regulations by environment and air quality, as well as financing the transition to achieve the 30% reduction in GHG emissions. This included a total of R15 to R25bn in global processing capital until 2030, while the targeted ROIC was to be above 15%.

Victor said the capital required to achieve the first key step in reducing GHG emissions by 30% by 2030 was moderate and manageable and did not come at the expense of improving financial returns.

“So it’s a win-win for all,” he said.

Victor said the group plans to continue reducing debt and restoring the dividend soon, achieving quality metrics by fiscal 2023, and fully implementing the Sasol 2.0 strategy by 2025.

The group also yesterday unveiled a new business unit, Sasol ecoFT, which would focus on developing technological applications, including greener aviation fuels.

“We have the technology to produce clean aviation fuel on a large scale not only for South Africa, but for the world as well. We have the technology to produce green ammonia for example and we have the technology to make sure that South Africa switches from coal to hydrogen and that we can export the hydrogen to global markets, ”said Victor.

Thandile Chinyavanhu, climate and energy activist at Greenpeace Africa, said: “In the context of the unemployment crisis in South Africa, we have to ask Sasol why he is not creating jobs now by pursuing the energies renewable, when the need is so immediate. This is a question for the entire fossil fuel industry. Sasol is not the great innovator he wants South Africans to believe he is. Investing in renewables while the government drags its feet would be the real innovation. “

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