Sasol to pull plug on synthetic fuels

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Ockie

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The recent completion of Sasol’s nine-year, R14bn mine replacement programme will provide the company’s Secunda synthetic fuels plant with feedstock until 2050. It, however, also marks the end of an era.

The Secunda plant uses coal-to-liquids (CTL) conversion technology and is the world’s largest by many orders of magnitude. Despite being highly profitable, the plant will be the last that Sasol will ever run.
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https://www.businesslive.co.za/bd/companies/energy/2018-07-16-sasol-to-pull-plug-on-synthetic-fuels/
 
If there’s still current levels of demand for synfuel in 2050 then something would have gone horribly wrong.
 
Ockie said:
In this country that is a very real possibility. We are nowhere when it comes to introducing biofuel into our mix.
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True, but there'd be more scope for electric vehicles than biofuels by 2050 (since electric vehicles have potentially the lowest emissions if powered by renewable energy).

So Sasol probably predicts that electric vehicle uptake will reduce need for synfuel and therefore even if they still produce coal, it would make more sense to sell it to a power plant than turn it into petrol.

They would probably revise their view if for some reason the electric vehicle uptake didn't happen.
 
So what will Sasol survive on then? The article doesn't really say. What is going to become their bread and butter if they are giving up their core business?
 
LazyLion said:
So what will Sasol survive on then? The article doesn't really say. What is going to become their bread and butter if they are giving up their core business?
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Most other energy companies (Total/Shell/BP) have a renewables division for when the revolution happens. Maybe they need to develop that.
 
LazyLion said:
So what will Sasol survive on then? The article doesn't really say. What is going to become their bread and butter if they are giving up their core business?
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They're becoming a chemical company. Remember their US mega project? And the Sasolburg chemicals complex? And their various other operations in chemicals, wax, explosives, fertilizer, etc?
 
R13... said:
They're becoming a chemical company. Remember their US mega project? And the Sasolburg chemicals complex? And their various other operations in chemicals, wax, explosives, fertilizer, etc?
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All of which is dependent and by products of their synthetic fuels operations not so? If that dies, then everything dies unless they convert to another feedstock and convert their refineries?
 
Ockie said:
All of which is dependent and by products of their synthetic fuels operations not so? If that dies, then everything dies unless they convert to another feedstock and convert their refineries?
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No. They can use gas as a feedstock. Yes some of the chemical feedstock is made of byproducts of the syn process but they can get around it. Sasolburg doesn't make fuel so they can change that easier I'm not sure if they use coal there though.
 
R13... said:
No. They can use gas as a feedstock. Yes some of the chemical feedstock is made of byproducts of the syn process but they can get around it. Sasolburg doesn't make fuel so they can change that easier I'm not sure if they use coal there though.
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Well, in the article it says they wont touch GTL either ... so gas is a no also. That leaves building a pipeline from Durbs to pump crude oil up and convert their refineries to use oil? :confused:
 
Ockie said:
Well, in the article it says they wont touch GTL either ... so gas is a no also. That leaves building a pipeline from Durbs to pump crude oil up and convert their refineries to use oil? :confused:
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GTL for fuel not as a chemicals feedstock. The environmental problems are mainly coal related.
 
3WA said:
If there’s still current levels of demand for synfuel in 2050 then something would have gone horribly wrong.
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New electric cars is expensive so uptake wil be really slow. We still haven't figured out who is going to build the infrastructure to charge it(longer distance travel). Normal garages will only do it once the demand is there and people are holding off buying these cars until someone put up charging stations.
 
rietrot said:
New electric cars is expensive so uptake wil be really slow. We still haven't figured out who is going to build the infrastructure to charge it(longer distance travel). Normal garages will only do it once the demand is there and people are holding off buying these cars until someone put up charging stations.
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Agreed. I wouldn’t be surprised if it takes 20 to 25 years for fuel demand to drop substantially.
 
I do think that the Euro 5 Standards have something to do with this decision.

Currently Sasol makes Euro 2 grade fuels. In order to convert to Euro 5, the infrastructure and process change investment might be too expensive.
 
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