Integrated energy and chemicals firm Sasol Ltd. anticipates financial as well as environmental benefits from its drive to use renewable energy for its operations, CEO Fleetwood Grobler said on Feb. 21.
The world's biggest producer of fuels and chemicals from coal and gas is working to cut its emissions by 30% by 2030.
Sasol and French gas company Air Liquide, which acquired Sasol’s oxygen production units in Secunda, launched a partnership in 2021 to jointly procure 1,200 megawatts (MW) of renewable energy for their respective operations.
On Feb. 21, the two companies announced a 260 megawatt wind and solar power purchase agreement with TotalEnergies and the privately-owned South African renewable energy firm Mulilo.
This adds to deals for 289 MW of renewable power Sasol and Air Liquide signed in January with Enel Green Power, a unit of Italy-based Enel and Msenge Emoyeni Wind Farm.
Grobler told Reuters in an interview that 550 MW of renewable energy projects that are expected to be operational by 2025 would account for around a third of Sasol's current electricity consumption of 1,500 MW.
"It helps us on our decarbonization journey. It also makes business sense when you look at the escalation of Eskom power price increases and factor in what the renewable power purchase agreements come out at, it becomes economically sensible to go for renewable energy," Grobler said.
Sasol reported a 9% profit jump in a half year it described as mixed as higher oil prices offset the impact of weaker global economic growth, higher costs, power cuts and poor rail logistics.
Sasol's core headline earnings per share - the company's preferred measure of its operating performance - was 24.55 rand ($1.36) in the six months to December 2022, compared to 22.52 rand in the corresponding six-month period a year earlier.
It said production volumes declined during the six months due to lower productivity and poor coal quality from its mining operations.
Sasol declared an interim dividend of 7 rand/share.
Recommended Reading
Oceaneering Won $200MM in Manufactured Products Contracts in Q4 2023
2024-02-05 - The revenues from Oceaneering International’s manufactured products contracts range in value from less than $10 million to greater than $100 million.
E&P Highlights: Feb. 5, 2024
2024-02-05 - Here’s a roundup of the latest E&P headlines, including an update on Enauta’s Atlanta Phase 1 project.
CNOOC’s Suizhong 36-1/Luda 5-2 Starts Production Offshore China
2024-02-05 - CNOOC plans 118 development wells in the shallow water project in the Bohai Sea — the largest secondary development and adjustment project offshore China.
TotalEnergies Starts Production at Akpo West Offshore Nigeria
2024-02-07 - Subsea tieback expected to add 14,000 bbl/d of condensate by mid-year, and up to 4 MMcm/d of gas by 2028.
US Drillers Add Oil, Gas Rigs for Third Time in Four Weeks
2024-02-09 - Despite this week's rig increase, Baker Hughes said the total count was still down 138 rigs, or 18%, below this time last year.