Sasol H1 coal exports down 25% due to rail, mining problems (updated)

Sasol

24/01/2023 12:33

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      Exports impacted by poor rail logistics, stoppages
    

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      Coal-reliant firm signs 289-MW wind power deals
    

  
 (Recasts with export figures)
       HARARE, Jan 24 (Reuters) - South Africa's Sasol  SOLJ.J 
on Tuesday reported a 25% decline in coal exports during the
first half of its financial year due to rail logistics problems
as well as safety and operational stoppages at its mines.
    In a production update, Sasol reported a 4% decline in coal
output to 15.2 million tonnes for the six months to Dec. 31,
with only 900,000 tonnes being shipped for export, compared to
1.2 million tonnes in its first half the previous year.
    State-owned rail operator Transnet's under-performance,
blamed on a shortage of locomotives and spare parts as well as
cable theft and vandalised infrastructure, has hobbled South
African coal exports at a time of high demand for the fossil
fuel especially in Europe, after the European Union banned coal
imports from Russia following its invasion of Ukraine. 
    Separately, Sasol said it has signed three wind power
purchase deals as it shifts towards renewable energy to meet its
carbon emissions targets.
    The world's biggest producer of fuel products and chemicals
from coal is moving away from fossil fuels as part of its plan
to achieve net zero carbon emissions by 2050.
    Sasol said it is partnering with French gas company Air
Liquide  AIRP.PA  to source 220 megawatts (MW) of renewable
power from two wind energy projects to be developed by Enel
Green Power, a unit of Italy-based Enel  ENEI.MI . 
    The two projects will supply power to Sasol's Secunda site,
where Air Liquide also has oxygen production operations.
    The 220-MW wind-powered projects are scheduled to be
operational in 2025 and are part of a plan to procure 900 MW
renewable energy for Secunda, Sasol said.
    "Sasol and Air Liquide's efforts to procure a total of 900
MW of renewable energy to decarbonise our respective operations
at Secunda is another step towards Sasol’s aim to procure 1,200
MW of renewable energy capacity from independent power producers
by 2030," said Priscillah Mabelane, Executive Vice President of
Sasol's Energy Business.
    Sasol also said it has signed an agreement with Msenge
Emoyeni Wind Farm in South Africa's Eastern Cape region to
supply 69 MW of wind power to its Sasolburg chemicals
manufacturing operations, where it plans to produce green
hydrogen.
 (Reporting by Nelson Banya; Editing by Alexander Smith and
Emelia Sithole-Matarise)
 ((Nelson.Banya@thomsonreuters.com;))