Petrochemical giant Sasol continued its downward spiral on the JSE yesterday.  Bloomberg
Petrochemical giant Sasol continued its downward spiral on the JSE yesterday. Bloomberg

Downward spiral on JSE for Sasol continues

By Dineo Faku Time of article published May 15, 2020

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JOHANNESBURG - Petrochemical giant Sasol continued its downward spiral on the JSE yesterday, falling more than 5percent despite its renewed commitment to reduce its greenhouse gas emission (GHG). 

The group, one of South Africa’s highest greenhouse gas emitters, yesterday issued a tender for independent power producers (IPP) to supply 600MW of renewable electricity capacity to help it meet its target by around 1.6 million tons a year.

Sasol said the IPP would be expected to participate in a request for information process to identify partners for the potential deployment of renewable energy projects.

“This will favourably position Sasol to deliver on our commitment of reducing our South African GHG emissions by at least 10 percent by 2030,” said chief sustainability officer, Hermann Wenhold.

Sasol unveiled its commitment to reduce the absolute GHG emissions in South Africa by at least 10percent by 2030, off its 2017 baseline last year.

Wenhold said that wind and solar photovoltaic technologies would be the favoured IPPs at this stage in line with the government’s Integrated Resource Plan, South Africa’s energy mix blueprint.

“The projects must show a generation capacity of at least 20MW to be implemented either as wheeled options from suitable locations across South Africa or as embedded options close to Sasol’s facilities in Sasolburg or Secunda,” Wenhold said.

Pressure is mounting for global corporations to reduce their carbon footprint, and lenders are shunning away from funding fossil fuel projects.

On Wednesday, Norway’s $1trillion (R18.5trln) wealth fund was excluding some of the world’s biggest commodities firms including Sasol, global mining giants Glencore, and Anglo American from its portfolio, because of their use and production of coal. Norway’s parliament agreed to toughen existing limits on coal investments last year by excluding companies that mined more than 20 million tons of coal a year or generated more than 10GW of power from coal.

Sasol, whose use of coal for the Secunda synfuels plant and power generation results in high carbon-dioxide emissions, is under pressure to be compliant with environmental regulations.

Sasol shares closed 1.20percent lower at R73.87 on the JSE yesterday.

BUSINESS REPORT 

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