Transitioning SA's Petrochemical Value Chain

Sasol has 11 500 employees in their South African chemicals and energy businesses, excluding coal mining. A large proportion of these employees are located in Secunda or Sasolburg .

Both the Grassroots and Business Engagements expressed concern for the Secunda workforce in the transition, as there is no concrete plan for these workers as the sector decarbonises. Sasol also has active coal mines, largely supplying Secunda, which employs the largest contingent of their workforce, 8 500 people. A comprehensive re-skilling and training transition plan for its workforce will need to be developed (Asset Management Engagement). Whilst the mining sector, including Sasol Mining is required to develop Social and Labour Plans, there are challenges with implementation.

The decarbonisation pathways for Secunda and Sasolburg will have implications beyond the plant employees, to downstream businesses and the economies in the two towns. The energy transition will bring challenges for the social fabric of these areas (Grassroots Engagement).

More is thus required to ensure viable economic opportunities for those impacted by the transition. One example of an opportunity that could emerge as the facilities transition is the transportation of biomass for energy in areas in close proximity to coal mines, which one estimate suggests could provide employment for almost 75% of the approximately 4 000 people currently employed as coal truckers. Other opportunities can be found in renewable energy generation, tourism and agriculture.

The Metsimaholo Municipality in which Sasolburg is located has a strong agricultural sector, with bio-energy production to supply the Sasolburg facility in future having been identified as a potential opportunity. The Govan Mbeki Municipality, where Secunda is located, relies more on industry and mining, with a far lower agricultural contribution to GDP. However, Government has been trying to support emerging farmers in the area, with Sasol contributing agricultural land to this effort. The Labour Engagement asked a fundamental question of how issues of land ownership, critical to the establishment of community structures, could align with ownership of energy inputs, fossil or sustainable.

The decarbonisation of downstream activities will also have employment impacts.  Whilst data is scant, a 2019 study by FTI Consulting suggests there are 95 000 indirect and direct jobs in the refining and logistics sectors, mostly classified as skilled and highly skilled. Jobs are already being lost in the refining sector as these facilities close. Forecourt attendants (80-130 000 jobs) and Internal Combustion Engine mechanics stand to lose out to the less complex servicing and fuelling of EVs. Opportunities need to be sought for these individuals.

The renewable energy value chain holds significant job creation potential for South Africa as a whole. The draft Renewables Masterplan indicates that 36 500 new jobs are possible in the renewables value chain by 2030, although this is dependent on a clear, coherent and ambitious policy direction.