on South Africa’s western coast. However, there are major issues with both of these potential power sources, and questions remain as to how the company will be able to replace coal in its mix when South Africa isn’t even producing enough energy to keep the lights on while it continues to rely heavily on coal. Securing enough energy to replace coal in Sasol’s operations will be no easy feat, and the company has expressed that it is “concerned” about supply.
Activists and analysts alike have questioned the company’s plans and commitment to reaching net zero emissions. Big lenders have suggested that a pivot from coal to natural gas, another fossil fuel with considerable emissions, is short-sighted and may be too little too late. “We still struggle to see how more gas makes long-term sense,” JPMorgan Chase & Co. said in a November research note.
To be fair, Sasol is currently expanding its renewable energy production capacity through partnerships with European firms. But it will not be nearly enough to power the company’s targeted rate of decarbonization. It’s great that Sasol is acknowledging its need to join the decarbonization movement, and , but holding the company accountable to its pledges will be another story.