Why in news
Sasol’s Secunda Complex facility is critical for South Africa's petrochemical sector, producing essential products and contributing significantly to the economy.
Secunda is the world’s largest emitter of carbon dioxide due to its reliance on coal, raising alarms about sustainability.
The plant faces potential closure as it grapples with declining coal supplies and international decarbonization commitments
Sasol Facility
Largest manufacturer of petrochemicals in South Africa
Secunda produces petrochemicals, plastics, fertilizers, and fuels, accounting for 2.6% of South Africa’s GDP directly.
It employs over 28,000 people and supports a local community built around the facility.
They use coal rather than oil or gas as a feedstock to make petrochemicals and liquid fuels, which is unusual
The Problem with Coal
The coal dependency leads to massive carbon emissions, making it unsustainable.
Local coal supplies are declining in quality and quantity, while natural gas reserves from Mozambique are also depleting.
Increased carbon taxes and emissions targets complicate the operational landscape for Sasol.
Way Forward
South Africa needs to plan for the eventual closure of Secunda, addressing potential economic impacts.
Explore options like green hydrogen and biomass, though these face economic viability challenges
Develop sectors like green hydrogen for export, electric vehicles, and green steel, requiring significant research and investment.
Policymakers must balance emissions reduction with the economic realities of job preservation and industrial output during the transition.
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