Sasol's Role in Unlocking Hydrogen's Significant

SASOL’S ROLE IN UNLOCKING HYDROGEN’S SIGNIFICANT POTENTIAL TO CONTRIBUTE TO ENERGY SECURITY AND TRADE

2nd Renewable Hydrogen and Green Powerfuels Webinar | 13 April 2021 Fleetwood Grobler, Sasol President and Chief Executive Officer

Global growth potential for green hydrogen

Sasol uniquely positioned to play leading role in SA hydrogen economy

Critical enablers to unlock hydrogen’s potential to reshape SA’s energy landscape

Ambitious decarbonisation pathways are required to achieve net-zero CO2 emissions globally by 2050 creating significant opportunity for South Africa in the nascent hydrogen sector

There are unprecedented announcements of large-scale green and blue hydrogen projects around the world, of which $80bn can be considered mature

Supported up by equally powerful government incentives totalling over $70bn and enabling regulations

South Africa has one of the world’s best renewable energy endowments and can potentially produce green hydrogen cost competitively for local and export markets

Companies are teaming up in eco-system partnerships to implement large-scale projects

H The growth of the green hydrogen market is driven by cost reductions in renewable energy, but largely in 2 $ electrolyser capex

HERITAGE CAPABILITIES

• We have 70 years of innovation • Significant producer, user and marketer experience, beneficiating natural of grey hydrogen resources and producing hydrogen • Capacity to manage complex integrated global value chains • Proprietary Fischer-Tropsch (FT) and catalyst technology for synthetic fuels and chemicals • Existing assets that can be repurposed VISION to take in green hydrogen • Strong local brand and market position • Leading the development of a supported by active R&D programme South African hydrogen economy • Trusted partner to government and other key stakeholders

Hydrogen from renewable energy or fossil fuels (+CCS) can be transformed into fuel and feedstock which can be used to decarbonise multiple sectors

PRODUCTION CONVERSION CONSUMPTION

Mobility, power and heating Feedstock Hydrogen1 Grey (H ) Road Storage and 2 Industry hydrogen Transport Energy route Ammonia Domestic Fossil Synthesis markets Grid Rail 3 Fertiliser Fuels Renewable electricity energy and Methanol electrolysis Synthesis Petro- Marine Heating Fossil chemicals Green Fuels and hydrogen CCS route Synfuels2 Blue Aviation Steel hydrogen route Hydrogen Exports (H2) Export markets EU Japan South Korea Grey H2: process: steam methane reforming (SMR); source: gas

Blue H2: process: SMR; source: gas; plus CCS 1. H2 is difficult and costly to transport. Methods include: Compressed H2 | Liquid H2 | Liquid organic hydrogen carrier (LOHC) | Ammonia with reconversion to H2 2. Synfuels using CO2 from an industrial source (e.g. cement plant) or Direct Air Capture (DAC) and in future FT produced CO2 and biomass Green H2: process: electrolysis; source: renewable 3. H2 for electricity has a low efficiency. It will only be used in cases with high cost alternatives

Copyright ©, 2021, Sasol CCS: Carbon Capture & Storage | Source: McKinsey Energy Insights 6 The power-to-liquids and high value chemicals (PtX) landscape is developing rapidly, presenting a global opportunity for Sasol’s proprietary FT technology

PtX technology is likely to be the winner in the sustainable aviation fuel (SAF) market based on a sharply declining cost curve (cost of green electricity and hydrogen electrolysers) and highest GHG emission elimination. PtX is also a promising pathway to lower carbon intensity chemicals.

Fischer Tropsch-based PtX process to produce power fuels, including carbon neutral kerosene for jet fuel

Renewable energy Sustainable Products • Jet fuel (SAF) •Diesel • Naphtha •Chemicals - - Electrolysis + - - (H2)

Syngas e-crude RWGS FT Synthesis Hydro-cracking

Carbon source (e.g. biogenic, CO>> 2 unavoidable CO2, DAC)

Sustainable feedstock Existing Sasol FT technologies and technologies from partners

Copyright ©, 2021, Sasol 7 Sasol assets and proprietary FT technology will support South Africa’s energy transition ILLUSTRATIVE Explore converting Sasolburg Incubating sustainable solutions Explore greenfield hydrogen equipment into green hydrogen by leveraging Secunda assets projects and/or ammonia production

New New Water Local Water Local markets - - Renewable Coal NG markets H2 + H2 Electricity Water Biomass - - International - - CO + 2 - - markets Electrolysis - - + Electrolysis - - Air H2 NH3 Air Renewable Storage Electrolysis Syngas Secunda NH3 Energy Ammonia Production Operations Renewable Energy Ammonia PSA & others* N2 NH3 PSA RE H2 P D C SAF N NH Air Separation 2 3 Air Separation Local Local markets Storage markets International International markets Electricity Mobility Chemicals markets Existing Sasolburg Operations Existing Secunda Operations New optimal location and scale

Note: the concept enabled by proportional or allocated *Note: others, for example PtX provided viable accounting of green hydrogen and biomass renewable carbon sources identified

Copyright ©, 2021, Sasol 8 Creation of hydrogen hubs is a cost-effective route to achieve scale deployment A hydrogen mobility corridor provides an “end to end” early prospect for a green hydrogen hub to prove technologies and test business models

Sasol partners with Toyota SA to establish a Hydrogen Mobility Ecosystem for SA

Pilot sites under consideration Hydrogen mobility ecosystem Sasol’s role Developing the first hydrogen corridor; others may follow on major routes

Production Distribution Market Manufacturing Blue H Anchor Refuelling station 2 Producer Natural gas Storage of hydrogen – grey to customer for green long Market maker Com- blue to green SMR / ATR pression distance heavy duty Establish industry hydrogen through CCS transport Pipe Green H grid 2 • Partnerships, Tube trailers • Supplier FCM’s Anchor development, - - Renewable OEM’s Base load + energy and Refuelling Spares and investor • Proof of concept - - electrolysis stations Maintenance consumer in distribution and investments for Sasol mining refuelling Partnerships, Licensing, energy consumption Finance infrastructure Regulations and Tariffs

Critical enablers to boost hydrogen economy development

Strategy and targets South Africa needs a Hydrogen Strategy – nationally coordinated with action plans and clear targets

Regulation and Regulatory consistency and coordinated project approvals to activate the market and assist early projects licensing / permits is required Promote infrastructure developments via PPPs and collaboration among actors to capture local and export Infrastructure market infrastructure synergies

Value chain Maximise value creation across hydrogen value chain through local and international partnerships

Financing and Facilitate access to affordable finance by attracting FDI and international development institutions incentives Coordination and Create partnerships and joint ventures to share knowledge and expertise while diversifying investment partnerships risk Research and Promote research and innovation projects on hydrogen technologies nationally and with international Development partners Develop programmes for hydrogen-related education and training focusing on new skills required for Skilled labour anticipated job creation opportunities

Sasol is stepping up to play a leading role in South Africa’s hydrogen journey

The journey to green hydrogen Green hydrogen presents unique opportunities commercialisation has started

Our ambition is to co-create South Africa’s hydrogen ecosystems through strategic partnerships, leveraging our proprietary technology and integrated value chain to kick The world is not yet meeting its Global hydrogen demand is start a hydrogen economy. climate change goals and expected to grow ~6-10x vs 2020 hydrogen is a big part of the answer volumes, accelerating after 2030 to Focus (areas under consideration) for the next 3 – 5 years: to achieve global net zero ambitions enable deep decarbonisation1 • Creation of hydrogen hubs (with proof of concepts) • Heavy-duty mobility in SA • Piloting opportunities to reposition of SA assets to provide sustainable liquids (SAF) and chemicals Green hydrogen is core to Future South Africa boasts one of the Sasol and our decarbonisation • Exploring greenfield opportunities at scale focusing on world’s largest renewables energy strategy; enabled by our deep endowments making it well-suited potential export markets hydrogen production, market to green hydrogen production to • Develop new global PtX opportunities enabled by our experience and proven FT supply domestic and export markets technology positions PtX propriety technology • Regulatory reform

PtX: Power to liquids | FT: Fischer-Tropsch