CASE STUDY SASOL

Big Push Towards Producing Sustainable Aviation Fuel

Among the worst greenhouse gas emitters in the country, the energy and chemicals producer is embarking on an extensive decarbonisation programme across its array of operations with production of sustainable aviation fuel at the forefront of its transition to being a net-zero carbon emitter by 2050.

Case Study

Sustainable Aviation Fuel (SAF) project – Sasol is set to produce sustainable jet fuel by 2025 for the aviation industry, which is said to be responsible for about 3% of global emissions. By targeting this hard-to-abate sector, Sasol is effectively poised to combat climate change globally while pursuing its vision to become fossil-free.

SDGs AFFECTED BY THE PROJECTS

SDG 13: Climate action – taking action to combat climate change.

SDG 17: Partnership and goals – forming global partnerships for sustainable growth.

Estimated Measurable Outcomes Of The Projects

Projected production of sustainable aviation fuel (SAF) from Sasol’s Secunda operation is pegged at 50,000 tonnes a year, potentially curbing up to 500,000 tonnes of carbon dioxide per annum.

For green hydrogen, which is essential for the production of SAF, production is projected at 3.5 tonnes per day at the Sasolburg facility, in Q1 2024.

Risks To Outcomes From The Project

Carbon tax presents a high risk for Sasol as one of the biggest emitters in the country. The tax rate attaches a rand value per tonne carbon dioxide equivalent emitted, therefore the higher the emissions the more tax the company is liable for.

Affordability of cleaner feedstocks presents a risk for Sasol as it moves away from cost-effective and abundantly available coal to more sustainable alternatives such as green hydrogen and sustainable carbon.

Technologies such as direct air capture and Carbon Capture Utilisation and Storage are essential for the production of SAF but are not yet economically viable. Grant funding has been applied for to counter the costs inherent in this endeavour.

Opportunities For Exposure

Sasol has launched a new corporate venture capital fund, Sasol Ventures. It will invest €50m over the next five years in start-ups providing pioneering technology to complement Sasol’s research and development.

As yet, Sasol has not introduced any green bonds or similar instruments through which investors can partake in its sustainable aviation fuel production and transitional journey.