Sasol to improve coal quality to sustain profitability and limit emissions
Secunda output to exceed 7.4 million tons/year by 2028
Renewable and gas investments to support decarbonization targets
Sasol is implementing a hybrid strategy that reinforces coal operations to sustain profitability while advancing its energy transition goals. The company, the world’s largest producer of synthetic fuels from coal and gas, is investing in improving coal quality to maintain competitiveness and support its target to cut greenhouse gas emissions by 30% by 2030.
At the core of this strategy is the ramp-up of output at the Secunda industrial site, where Sasol plans to exceed 7.4 million tons per year by 2028—nearing full capacity. To achieve this without compromising its emissions commitments, the firm is focusing on enhancing the quality of coal extracted from its mines. This follows geological challenges that have reduced coal efficiency, caused frequent gasifier breakdowns, and lowered plant availability.
Real-time coal quality monitoring is being deployed and is expected to be operational by December 2025. Simultaneously, Sasol is optimizing operations at the Thubelisha mine to increase internal supply at lower cost and will continue sourcing additional coal externally to adjust its feedstock mix.
The coal quality initiative is part of a broader operational transformation. Sasol has revised its renewable energy capacity target upward—from 1.2 GW to over 2 GW—intending to offset a portion of its coal-related emissions. It is also pursuing gas-based power generation partnerships, notably with Eskom, and investing in future-focused sectors such as sustainable aviation fuels and green chemistry.
This dual-track approach is underpinned by strict financial discipline. Sasol aims to keep net debt below $3 billion while maintaining conditions for dividend resumption and future high-return investments. The strategy reflects Sasol’s intent to balance its legacy industrial model with the need for climate-resilient energy solutions.
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