Sasol announces new emission reduction commitment, LC growth plans
Published 1:40 pm Tuesday, September 28, 2021
Sasol has announced plans to reduce greenhouse gas emissions by 30 percent globally and across its U.S. operations by 2030. The company also announced growth plans for its Lake Charles multi-asset site.
During its Capital Markets Day on Sept. 22, the company said it would reduce annual greenhouse gas emissions from its U.S. operations as part of an increased focus on sustainability.
“Our goal is to decarbonize our operations through three primary initiatives,” said Eric Stouder, senior vice president of Sasol Chemicals America. “We will significantly increase our use of renewable energy; increase our energy efficiency; and pursue carbon capture use and storage opportunities across our operations.”
Stouder said the company is already working toward purchasing direct and virtual renewable power for its Lake Charles manufacturing site, with commercial implementation anticipated by 2026. In addition, the company intends to extract further value from the Lake Charles site through potential opportunities for co-location and expansion as a sustainability hub with partners. Sasol recently completed the Lake Charles Chemicals Project near Westlake, nearly doubling its manufacturing capacity and workforce at the site. The Sasol site now supports approximately 2,000 employees and contractors annually in Louisiana.
The company also announced plans to increase investment in developing innovative solutions produced at Lake Charles that can help its customers – and the consumers who buy their products – achieve their own sustainability goals.
Stouder said the company was already partnering with several global consumer brands to lessen the environmental impact of fabric care.
“When added to household or commercial laundry detergents, our branched alcohols and surfactants can enhance the effectiveness of low-temperature laundry washing,” Stouder said. “That’s a small change that can have a significant impact for billions of consumers worldwide.”
In addition, the company’s specialty alcohols can be used in lubricants for wind turbines, improving their efficiency and longevity.
“Our Lake Charles site will play a significant role in Sasol’s long-term strategy to answer the sustainability call both in the way we run our business and in the solutions we provide that improve sustainability across the product life cycle,” said Stouder.
Sasol also announced that the company’s America region has delivered strong financial results coming out of the COVID-19 downturn. Sasol expects the America region to contribute EBITDA (earnings before interest, taxes, depreciation and amortization) of $700-$900 million by fiscal year 2025, and $0.9 – $1.1 billion by fiscal year 2030.
A strong and stable financial outlook supports further investment in Sasol’s existing asset base in Lake Charles. The company said it plans to do this through low-capital debottlenecking and expansion projects that have short payback periods and high returns.
“We are proud of our people and the progress we’ve made in the United States,” said Stouder. “We are becoming a more agile, more customer-centric organization – one that is focused on specialty solutions that can make a difference for our employees, our customers, our communities and our world. And our financial performance is proof.”