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112 Natural gas conversion Sasol’slowcarbontransitionflagshipforthepetrochemicalsindustry Shingirirai Savious Mutanga 6 ABSTRACT This chapter unpacks initiatives by Sasol, a global player in the petrochemicals industry. The interests of the Sasol group of companies comprise diversified fuel, energy, chemical, and related manufacturing and marketing operations. Its principal feedstock is from coal, which the company converts into value-added hydrocarbons through the Fischer-Tropsch (FT) process technologies. While coal reserves present an opportunity for enhanced energy security, the coal to liquids (CTL) fuel process upon which Sasol’s success has been built is a significant contributor to South Africa’s green house gas (GHG) emissions. In response to the need to move towards lower carbon and greener operations, four distinctive Sasol initiatives are highlighted. These are: energy efficiency, low carbon electricity, the carbon capture and storage (CCS) initiative, and the natural gas conversion project. In 2008, Sasol established the New Energy Investment Company to drive these initiatives. Sasol’s natural gas conversion project emerged as a major breakthrough in the transition to a low carbon and greener economy. Based on estimates provided, the conversion to natural gas contributed towards improved air quality. Sasolburg emissions of sulphur dioxide and nitrogen oxide decreased by 35 per cent while carbon dioxide emissions reduced by 47 per cent, that is almost 3,3 million tonnes per year. Apart from the four main initiatives, Sasol has other green economy initiatives that revolve around water resources management, as well as research and development. INTRODUCTION This chapter profiles Sasol’s conversion from coal to natural gas as a flagship breakthrough towards a lower carbon and greener economy, both nationally and internationally . Sasol is a South African state owned enterprise with interest in energy. The natural Natural gas conversion 113 gas conversion project has inherent benefits of reduced emissions and grid pressure on electricity demand. At the time of finalising the writing of this chapter Sasol was embarking on a second wave of projects using natural gas to produce power in the towns of Secunda and Sasolburg. Apart from the natural gas conversion initiative, Sasol has other low carbon and green economy initiatives that include energy efficiency, water resources management, as well as research and development. Since the industrial revolution, coal has been at the forefront of humankind’s drive to improve the quality of life and support development. The petrochemicals industry has significantly benefited from coal, as a feedstock for manufacturing organic chemicals and synthetic fuels. Nonetheless, the implications arising from the extensive use of this fossil fuel has raised concerns about the quality of the environment at global, national and regional levels. Tighter environmental constraints have increased the pressure on producers and users of fossil fuels to clean up and reduce pollution. The effects of climate change have for years undoubtedly been an intractable element in the world’s discourse on the environment. While pressure has been applied to drive responsible extraction, preparation, transport, and use of all fossil fuels, it is coal production and the combustion thereof that has attracted the most attention. Several companies in the petroleum industries like BP, Shell, Engen, and Total have adopted sustainable development as a key business driver to their operations. The approach to committing to the sustainability concept in their business strategy has differed widely. Sasol is a technology driven, alternative fuels energy and chemicals company which was formed in 1950 in Sasolburg, South Africa. Sasol has grown to become South Africa’s leading fuel provider and an international player in the energy and chemicals sectors. The company converts gas and coal into liquid fuels components and chemicals through proprietary processes.1 The company mines coal in South Africa, extracts gas and condensate in Mozambique and oil in Gabon. Through Sasol’s network of convenience centres, imported crude oil is refined and liquid fuels are retailed. In addition, it supplies gas to industrial customers within and outside South Africa. Sasol started producing synthetic fuels in 1955 and continues to pursue international opportunities to commercialise its gas-to-liquids (GTL) and CTL technology.2 At the time of this writing, Sasol operated facilities in 38 countries, employing over 34 0003 people. Sasol acknowledges that one of its significant challenges as an international energy company is balancing its current alternative energy security offerings with the desire to move towards a lower carbon future.4 Sasol’s development ideology is driven by the needs of today’s generation without compromising the ability of future generations, reflecting...

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