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South African Energy Company Sasol Upgrades Coal Processing to Cut Emissions

South African Energy Company Sasol Upgrades Coal Processing to Cut Emissions
Wednesday, 25 February 2026 13:12
  • Sasol commissioned a coal-sorting plant at its Secunda complex.

  • The system improves coal quality and reduces emissions per unit of energy.

  • Company reports positive cash flow despite asset impairments.

South African energy and chemicals company Sasol has commissioned a coal-sorting plant at its Secunda complex, according to its interim financial results for the six months ended December 31, 2025, published February 23.

The new installation removes stones and other inert materials from mined coal before it is used in the site’s industrial processes. Sasol says the system improves the quality of the fuel used at Secunda, its main facility for producing fuels and chemicals from coal.

By reducing impurities, the company says it can increase the amount of energy generated per ton of coal burned. This improvement lowers greenhouse gas emissions per unit of energy produced.

Cash Recovery Amid Asset Write-Downs

The commissioning comes as Sasol reported mixed half-year results. Financially, the company generated free cash flow of 0.8 billion rand (about $43 million), marking its first positive cash flow after capital expenditure in four years.

Revenue for the period reached 122.4 billion rand (about $6.6 billion). However, earnings were weighed down by significant asset impairments, including those linked to the Secunda liquid fuels refinery and gas assets in Mozambique. In late January 2026, Sasol warned South African customers of a potential disruption in natural gas supply from Mozambique.

The company says its broader strategic initiatives — including expanding renewable energy capacity and optimizing industrial processes — are progressing in line with targets presented during its 2024 investor strategy update. Sasol aims to reduce its greenhouse gas emissions by 30% by 2030 compared with its baseline level.

Abdel-Latif Boureima

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