Sasol, a company listed on the Johannesburg Stock Exchange (JSE), announced a significant revision of its emissions reduction plan, reducing the investments initially planned for the energy transition. Despite the cuts in the environmental strategy, the company confirmed that it will continue to import gas from Mozambique until 2034, ensuring supplies to the Secunda industrial complex in South Africa.
Sasol, a company listed on the Johannesburg Stock Exchange (JSE), announced a significant revision of its emissions reduction plan, reducing the investments initially planned for the energy transition. Despite the cuts in the environmental strategy, the company confirmed that it will continue to import gas from Mozambique until 2034, ensuring supplies to the Secunda industrial complex in South Africa.
According to Engineering News, Sasol’s CEO, Simon Baloyi, guaranteed that the goal of reducing global greenhouse gas emissions by 30 per cent by 2030 will be maintained.
However, the company has adjusted its strategy, reducing the estimated costs of the transition plan from approximately 821.9 million to 1.3 billion dollars (51.9 billion to 86.8 billion meticals) to a new range of 598 million to 870 million dollars (38.2 billion to 55.6 billion meticals).
The main change in the emissions plan is related to the future use of natural gas. Sasol no longer intends to import liquefied natural gas (LNG) to replace coal in its industrial process. Instead, it will continue to rely on Mozambican gas supplies until 2034, although it has warned that from 2028 it may not be able to guarantee gas for South African industrial customers due to the so-called ‘gas cliff’.
The Secunda complex, one of South Africa’s biggest emitters of polluting gases, has faced challenges related to the quality of the coal used in processing. In order to maintain stable production, Sasol is now focusing on projects such as removing impurities from the coal before processing and increasing the use of renewable energies.
Baloyi revealed to Engineering News that the company plans to integrate at least 1500 MW of renewable energy into the Secunda complex, surpassing the initial target of 1200 MW. Sasol has already signed contracts for the purchase of 750 MW and is studying new alternatives, including its own generation and partnerships for the purchase of electricity through the national grid.
As well as investing in renewable energies, the company intends to strengthen energy efficiency measures, incorporate sustainable carbon sources and use carbon credits to offset part of its emissions.
Although it has revised its environmental investment plan, the decision to extend gas imports from Mozambique until 2034 guarantees an essential source of energy for Sasol’s operations, while the company adapts to the regulatory and environmental requirements in force.
