SASOL Integrated Report 2025_Final_28 August 2025 - Flipbook - Page 84
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
BUSINESSES
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
ENVIRONMENT continued
CLIMATE CHANGE continued
GHG reduction
Southern Africa:
A Boiler turndown and air emissions
compliance
(
refer to the Air quality pages 77 – 78)
Mitigation levers
A 1 boiler equivalent turndown since
Renewable energy strengthens the foundation business and lowers
carbon intensity
A Achieved boiler PM and NOx
Our renewable energy strategy is already deep in execution, following a two-pronged
approach. First, we secured low-cost power-purchase agreements for shovel-ready
projects and this allowed us to decarbonise quickly and lock in immediate savings.
Second, we use the breathing room that these PPAs created to pivot into equity
stakes and trading positions for added value. We are applying the same “start
small, scale fast” logic to embedded generation. A 3 MW solar array in Sasolburg
has proven the concept of building inside our fence and bypassing grid-access
delays; we are now rolling this template across our land portfolio, site by site.
With these successes, we are moving from pure off-take to selective equity,
allowing us to capture developer margins, as well as trading upside. We are
avoiding overexposure on one mega-project and instead are stacking a series
of smaller, high-confidence projects – each one lowering our cost base and
ratcheting up our capabilities. The savings and carbon reductions already being
realised from renewable energy prove that our strategy is effective and profitable.
1 April 2025
compliance
A Steady progress on electrical import
infrastructure project (Project Mulalo)
with beneficial operation in 2029
Utility system design and scope
optimised to include only condensate
production capacity, while need for
additional steam production capacity
has been eliminated.
OUR PROGRESS
We have already made tangible progress in executing our emission reduction
plans. Our energy efficiency initiatives are delivering results, enabling us to turn
down the equivalent of our first boiler in Secunda earlier this year. In addition,
renewable energy is beginning to power our operations, marking an important
step in our transition. Sasol’s optimised roadmap not only supports emissions
reduction but also unlocks economic value and provides strategic flexibility.
Energy efficiency:
Sasol has committed to improving its
energy efficiency by 30% by 2030, using
2005 as the baseline year. As of the
latest reports, it has achieved a 19%
improvement in energy efficiency from
this baseline. We are implementing
measures to ensure that we meet the
target set.
By combining capability-building investments, external market expansion, and
flexible partnerships, our approach ensures resilient growth.
Carbon credits and offsetting
Sasol remains committed to advancing techno-economically feasible on-site
mitigation options, aligning with our net zero aspirations and contributing to
South Africa’s NDC.
Renewable energy:
To date, Sasol has signed PPAs with a
total RE capacity of ~920 MW. The first
69 MW was energised in October 2024.
Recognising the current technical and economic challenges to completely avoiding
or reducing GHG emissions, we continue to consider the strategic use of carbon
credits and other market mechanisms essential to offset emissions that cannot
be mitigated immediately.
Offsets:
This year, we secured over 3,8 million
credits from seven local projects, mitigating
the release of over 3,8 Mt CO2e. This
allows carbon finance to be directed back
into the South African economy to realise
additional environmental, social and
economic benefits for local industry and
communities. This was in support of the
Carbon Tax Act where, since 2019, over
19 million credits have been cumulatively
retired from local projects, mitigating the
release of over 19 Mt CO2e in the country.
This approach supports our interim objectives, including carbon tax liability and
GHG targets, and contributes to global preservation of the carbon budget while
broader mitigation technologies are under development. We have also been
exploring the business case for both generating and using offsets as part of a
synergistic climate management and business-building approach.
team are currently conducting an engineering conceptual design and technoeconomic
analyses and has committed to install and commission laboratory equipment to
develop fundamental understanding on CO2 mineralization mechanisms, and provide
project management support to the CGS for CO2 injectivity testing at the Leandra site
near Secunda Operations. Sasol’s Regional Operations and Asset Services’ geology and
subsurface engineering specialists are expanding understanding of the opportunity
together with intelligence from existing installations in Iceland and Oman. This
ongoing partnership focuses on advancing the pilot plant program to validate the
CO2 sequestration potential, assess economic viability, and develop a funding
strategy, while also supporting advocacy for enabling policy frameworks.
Operational emissions reduction at Mozambique gas facilities
At Sasol Mozambique Gas Operations, the initiatives to quantify and report on GHG
emissions continue to be implemented as a way to understand the emissions profile
and develop reduction initiatives. Electricity supplied to the Natural Gas Central
Processing Facility (CPF) is self-generated, through a high pressure fuel gas system,
thus reducing the need for higher carbon emission fossil fuels such as diesel as well
as pressure on the public electricity grid. On the gas wells, off-grid solar energy is used
to power natural gas well monitoring systems and perimeter lighting on well pads.
Pande-4 update
The Pande-4 well, which experienced a blowout in 1965 and lies
within the Petroleum Production Agreement licence now overseen
by Sasol, remains under close supervision.
Satellite monitoring by GHGSat continues bi-monthly, confirming methane
emissions around 36 tons per day (~310 ktpa CO2e), consistent with previous
years. Environmental monitoring – covering air, soil vapour and water quality –
shows no adverse impact on nearby groundwater, with lower explosive limits
(LEL) remaining at zero percent.
Ongoing studies aim to deepen understanding of subsurface dynamics, including
the effects on the aquifer, reservoir compartmentalisation, and shallow gas
zones, which are not yet fully characterised. The project remains in the Concept
Select phase to determine the optimal remedial option, with completion targeted
for the first quarter of calender year 2026.
We transparently disclose the carbon credits that we use for regulatory and
voluntary purposes and will continue doing so as we progress on the journey to
our net zero ambition. This data is reflected annually at a project level in our CDP
disclosures ( www available on our website www.sasol.com/esg) and on
page 81 as part of our gross and net GHG emissions reporting.
Carbon capture and storage
Carbon capture and storage (CCS) remains a key technology for addressing
hard-to-abate emissions. Building on the extensive site evaluations and
permitting led by the Council of Geoscience (CGS), our Research and Technology
SASOL INTEGRATED REPORT 2025
83
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For a comprehensive overview and details, please refer to the 2024 Integrated Report.
www.sasol.com
