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
Cardinal Energy Declares April Dividend
2024-04-11 - Canadian oil and gas company Cardinal Energy Ltd. will pay a CA$0.06 (US$0.044) per common share dividend.
Advantage Adds Festival to Board Following Haggis’ Retirement
2024-03-14 - Paul Haggis is retiring from Advantage Energy’s board of directors after more than 15 years with the company.
Kimmeridge Fast Forwards on SilverBow with Takeover Bid
2024-03-13 - Investment firm Kimmeridge Energy Management, which first asked for additional SilverBow Resources board seats, has followed up with a buyout offer. A deal would make a nearly 1 Bcfe/d Eagle Ford pureplay.
Laredo Oil Subsidiary, Erehwon Enter Into Drilling Agreement with Texakoma
2024-03-14 - The agreement with Lustre Oil and Erehwon Oil & Gas would allow Texakoma to participate in the development of 7,375 net acres of mineral rights in Valley County, Montana.
SLB’s ChampionX Acquisition Key to Production Recovery Market
2024-04-21 - During a quarterly earnings call, SLB CEO Olivier Le Peuch highlighted the production recovery market as a key part of the company’s growth strategy.