SA’s Sasol is battling for gas and hydrogen.

The second-largest emitter in South Africa wants to rank among the largest consumers of renewable energy on the continent, but for the time being Sasol is still very dependent on fossil fuels.
The company, which became well-known for using coal to produce synthetic fuel and chemicals, wants to be net-zero by 2050. Activists and several analysts have criticized the strategy for being unspecific and unachievable.

Given the recent unexpected production cut by OPEC and rising oil prices, which heavily influence the value of Sasol’s products, some energy corporations may be motivated to reconsider their green aims.

Sasol will face a particularly difficult challenge in reducing emissions because its largest facility generates more greenhouse gas than Marathon Petroleum or BP’s combined global operations. According to Chief Executive Officer Fleetwood Grobler, the business is dedicated to a green future; all it needs is profitability to get there.

The corporation has relied on the dirtiest fossil fuel as its main source of income since its founding in 1950, and as a result, its Secunda factory in central South Africa is the planet’s most polluting location as a whole.

In an interview at the business’s Johannesburg headquarters, he stated, “We’ve got an emphasis on coal quality that’s hurting our operations. According to him, Sasol has used up the richest reserves at its mines, and what’s left performs less effectively in operations that turn the material into fuel. “We are making every effort to fix that,”

Grobler is worried about oil price volatility despite the current upswing, especially if crude prices drop toward $40 per barrel. “At that point,” he continued, “I would be really worried.”

Gas from Coal

Sasol’s plan to replace one fossil fuel with another involves replacing their goal of reducing emissions by 30% by 2030. Finding adequate natural gas, which is more effective and emits fewer pollutants, will be necessary to reduce the 40 million tons of coal it primarily utilizes each year for fuel by 25%, Grobler said.