https://www.miningweekly.com

Sasol to test market for Southern African carbon-offset prospects

29th October 2020

By: Terence Creamer

Creamer Media Editor

     

Font size: - +

Chemicals and energy group Sasol has indicated that it intends issuing a request for information (RFI) for the development and implementation of carbon-offset projects in South Africa and the Southern African Development Community (SADC) and has called on potential participants to register their interest by mid-November.

The JSE-listed company’s production processes for the manufacture of fuels and chemicals from coal are highly carbon-intensive and it is, thus, coming under increasing pressure to accelerate its decarbonisation efforts, beyond its current plan to reduce emissions by 10% by 2030.

Under its current plan Sasol has committed to reducing greenhouse-gas emissions from the 63.9-million tons of carbon dioxide equivalent (CO2e) emitted in 2017 to 57-million CO2e tons by 2030.

However, the group has indicated that it is working on a longer-term plan to 2050, which is scheduled to be released at its Capital Markets Day in 2021 and which will be embedded in its so-called ‘Future Sasol’ strategy, which is anticipated for release in November.

Sasol has already indicated that it intends pursuing wind and solar projects with a combined capacity of between 200 MW and 300 MW, after having received a strong response to a renewables RFI issued in May.

It has also initiated a process, through a separate RFI that closed on September 30, to identify potential partners for the development and demonstration of technologies that can utilise the CO2 produced at its South African operations.

Through the carbon-offset RFI, Sasol says it aims to determine the ability of the South African and SADC markets to generate and make available carbon credits.

Carbon offsets and markets are recognised under Article 6 of the Paris Climate Agreement, allowing those with low emissions to sell their exceeding allowance to larger emitters, but within an overall emissions cap. The mechanism should be pursued only once every effort has been made to first avoid and reduce direct emissions.

Sasol says it wants to identify partners that are involved in carbon-offset projects at any stage of the development process in the specified regions.

“Projects must focus on generating emission reductions in sectors that would otherwise not have been incentivised to do so; for example, in domestic energy efficiency, waste and agriculture, forestry and other land use sectors.”

The closing date for potential participants to express an interest in the offset programme has been set as November 13, after which Sasol will publish the actual RFI in the week that follows. 

 

 

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION