Transitioning SA's Petrochemical Value Chain

Sasol recognises the significant demand on water resources for its operations, with 88% of the Group’s total demand being supplied through the Integrated Vaal River System (IVRS). While supply is reported to be secure, the company recognises that future demand on the system could result in supply constraints. In addition to being water users, their facilities generate effluent streams which require licensing from the Department of Forestry Fisheries and the Environment, and appropriate management, failure to do so resulting in pollution of local water bodies. Various investments have been made over the years to reduce water utilisation and treat effluents prior to release.

Coal supply similarly requires water for mining and beneficiation processes, and has long been associated with pollution of water bodies, including through the generation of acid mine drainage. Some natural gas extraction processes potentially also require water, notably in the case of shale gas.

Coal-fired electricity generation requires water input, with some power plants being situated in water scarce locations, as do some renewables technologies such as solar PV for washing panels, albeit that volumes are insignificant relative to those required for coal-fired electricity.

Water is required for production of hydrogen in the electrolysis process, although some claim this is lower than that required for fossil-based processes (Source: Business Engagement). Production of green hydrogen implies a reaction requirement of 9 litres of water per kg of green hydrogen produced, although associated processes take this value to 60 to 95 kg, excluding the water used in renewable energy generation. Where production of green hydrogen occurs in water stressed areas, this demand could be material (Source: Labour Engagement, Civil Society Engagement). Recent research suggests that sea water can be used for the production of green hydrogen, with implications for geographical position of electrolysers.

The water use implications of growing biomass for energy recovery and as a carbon source for Secunda and Sasolburg could be significant, although using woody invasive alien species potentially improves water availability.