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## o highlights 

o Commissioned gas turbines to produce electricity from natural gas 

<img src='content_image/199069.jpg'>

o Investigating feasibility of producing additional power from natural gas 

o Studying several opportunities for producing electricity from renewable sources 

o  Taken a share in a CCS demonstration facility in Norway 

## Sustaining Sasol 

Sasol’s newest business unit, Sasol New Energy, started work in earnest in 2010. We are developing strategies and projects to ensure Sasol can operate sustainably into the future and prosper as the world moves towards lower carbon solutions, and as water resources become more scarce. 

The Sasol group has a long history of, and valuable experience in, developing and commercialising innovative technologies. Working closely with Sasol Technology, Sasol New Energy intends to leverage this capability – a key competitive advantage – in a number of ‘new energy’ fi elds. These include: energy effi ciency; low-carbon electricity production; renewable energies; carbon capture and storage; and cleaner coal technologies. The more effi cient use of water is also closely linked to these imperatives. 

In the year, we built on the group’s understanding of the various technologies that exist across these fi elds, assessing each for opportunities to develop them further. Our goal is to provide Sasol with business options that help meet its long-term greenhouse gas reduction targets and are supported by viable, commercially proven technologies. 

Sasol has set a target of improving the energy efficiency of its South African utility facilities by 15% per unit of production by 2015, compared with a base set in 2000. We are well on track to meet this target. We also intend using low-carbon electricity and renewable energy to optimise our FT-based processes in existing and future facilities. 

## Lowering the carbon intensity of electricity 

In June 2010, Sasol commissioned two gas turbines at Sasol Synfuels’ operations in Secunda to produce electricity from natural gas from Mozambique. Using natural gas as a feedstock, rather than coal, results in 60% lower carbon dioxide (CO$_{2}$) emissions. These gas turbines will initially operate in open-cycle mode, producing 200 megawatts (MW) of power, which will be sold to state utility, Eskom. They will later be converted to closed- cycle mode with the addition of heat- recovery steam generators, increasing the capacity to 280 MW. 

Sasol New Energy is investigating the feasibility of constructing a 140 MW gas-fired power plant in Sasolburg. We are also looking at prospects for hydro-electric 

power production, as well as furthering our understanding of the opportunity for additional nuclear power capacity in South Africa. 

## Exploring renewable energy 

Sasol New Energy is considering using electricity produced from renewable resources to reduce Sasol’s dependence on coal as a source of energy in its Fischer-Tropsch facilities. We are also investigating opportunities to produce electricity from renewable sources, under the renewable energy feed-in tariff (REFIT) scheme proposed in South Africa. 

We acquired a 40% interest in Thin Film Solar Technology (TFST) to commercialise the thin-fi lm photovoltaic technology developed at the University of Johannesburg. The other major shareholder is the South African Government’s Central Energy Fund. On completion of further development and testing of this second-generation technology, TFST aims to build a 40 MW photovoltaic panel production facility in Paarl, near Cape Town. Sasol is investigating opportunities to develop third-generation photovoltaic technology aimed at reducing the cost of photovoltaic panels. 

