Sasol's Carbon Conundrum: Boosting Coal While Banking on Credits
Share- Nishadil
- August 26, 2025
- 0 Comments
- 1 minutes read
- 5 Views

In a strategic pivot that highlights the complex challenges of energy transition, South African energy and chemical giant Sasol Ltd. is significantly ramping up its acquisition of carbon credits. This move, however, comes hand-in-hand with an unexpected increase in the use of coal, its most polluting feedstock, at its massive Secunda facility.
The company, a cornerstone of South Africa's industrial landscape, finds itself in a precarious position.
Its preferred energy source, natural gas from Mozambique, is facing supply constraints. With dwindling gas availability, Sasol is forced to revert to higher volumes of coal to maintain production of essential chemicals and fuels, despite its ambitious long-term decarbonization goals.
This reliance on coal directly contradicts Sasol's public commitment to a more sustainable future, including a target to reduce greenhouse gas emissions by 30% by 2030 and achieve net-zero emissions by 2050.
The increased burning of coal inevitably leads to a surge in carbon dioxide emissions, making the purchase of carbon credits a crucial, albeit short-to-medium term, mitigation strategy.
Carbon credits serve as a financial instrument allowing companies to offset their emissions by investing in projects that reduce or remove an equivalent amount of greenhouse gases from the atmosphere elsewhere.
For Sasol, this means buying time and providing a bridge while it explores and invests in more sustainable, long-term solutions for its operations.
The company's CEO has openly acknowledged the dilemma, stating that the decision to increase coal use is driven by operational necessity rather than a change in environmental strategy.
Sasol remains committed to its decarbonization pathway, which includes exploring a diverse portfolio of technologies such as renewable energy, green hydrogen, and carbon capture and storage.
This situation underscores the intricate balance companies like Sasol must strike between maintaining economic viability, ensuring energy security, and adhering to global climate imperatives.
The cost of these carbon credits, while substantial, is viewed as a necessary expenditure to manage its environmental footprint during this challenging transition period, as it navigates the path towards a cleaner, more sustainable energy future for its vast industrial operations.
.Disclaimer: This article was generated in part using artificial intelligence and may contain errors or omissions. The content is provided for informational purposes only and does not constitute professional advice. We makes no representations or warranties regarding its accuracy, completeness, or reliability. Readers are advised to verify the information independently before relying on