SASOL Wants to Convert Some of its Coal Power Generation to Gas

News Flash

  • South Africa’s petro chemicals giant, Sasol, plans to transition some of its coal power generation plants to gas imported from Mozambique.
  • CEO Fleetwood Grobler was speaking to CNBC Africa yesterday after delivering the company’s interim results.
  • Funds have been approved for the first phase of the switch at the company’s Secunda plant.
  • Currently gas is source via a 865 kilometre pipeline from the Pande-Temane gas fields in Mozambique where natural reserves are declining, and supply is expected to be constrained from about 2025 onwards.
  • The company expects to conclude a new gas supply contract by the end of the year with supply to come online in 2026 but no speciifc details on supplier and import channel was provided.
  • “The fuel switch is central to Sasol’s initial commitment to reducing its greenhouse gas emissions by 30% by 2030,” said Grobler.

Sasol is South Africa’s second highest emitter of greenhouse gases, and its Synfuels plant in Secunda is reportedly the largest single-source point of emissions on the planet. Sasol is listed as one of the so-called Carbon Majors, the 100 companies estimated to be responsible for 71% of global greenhouse gas emissions.

In September last year, the company committed to stepping  up its 2030 scope 1 and 2 greenhouse gas (GHG) emission reduction target, from an initial 10% for its South African operations, to 30% for its Energy and Chemicals businesses, off a 2017 baseline.

South Africa gas pipeline network plan. Image credit: @SasolSA Twitter

In 2023, Sasol plans to produce the first commercial-scale green hydrogen in Sasolburg, using electrolysers which have been repurposed,” the company said. Read more

Related news: Gas must be exploited as a transitionary fuel to renewables in South Africa?

Grobler also added that the company’s renewable energy RFP for 600MW is on track and PPA’s are expected to be concluded with independent power producers for 200MW of renewable energy to be supplied to their Secunda plant in 2023.

Link to the full interview with CNBC Africa HERE

Author: Bryan Groenendaal

South Africa’s gas sector will be a hot topic at the Africa Energy Indaba 2022 happening 1-3 March at the Cape Town International Convention Centre. The event has a special ‘Africa Gas Forum’ which runs as a side event on 2nd March. Do not miss it! Register to attend HERE 

 

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