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Briefing the Portfolio Committee on Water and Sanitation

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Briefing the Portfolio Committee on Water and Sanitation Briefing the Portfolio Committee on Water and Sanitation 25 November 2014 A newA new era forera Sasol for Sasol Presentation overview 1. Sasol today 2. Sasol’s approach to water management 3. Sasol’s water initiatives and opportunities going forward Sasol forecourt, Secunda Lake Charles, Louisiana A new era for Sasol 2 Sasol today A newA new era forera Sasol for Sasol Our global presence Where we operate This map is a broad indication of Sasol’s global presence and of its continuing operations, but is not location-specific. Sasol has a presence in 37 countries across the world comprising a combination of exploration, development, production, marketing and sales operations A new era for Sasol 4 A product of South Africa’s success 33 000 directly employed • An integrated energy and chemical company, with 64 years experience in coal-to-liquids (CTL) and gas-to-liquids (GTL) R800m to be invested in technology community infrastructure • Global leader in GTL and CTL - world’s largest producer of synthetic fuels SA capital spend – R19,8bn • Strong intellectual property portfolio (490 registered patent (59%)** families) • Nurture and grow strategy - maintaining and enhancing SA R95bn spent in South Africa business and exploring growth opportunities in Africa over last 5 years • Proudly flying the South African flag as we pursue growth opportunities in the region and abroad Listed on JSE (SOL) and NYSE (SSL) * *For year ended 30 June 2013 A new era for Sasol 5 Over the last 64 years we have delivered real value through beneficiation Our technology innnovation allowing us to reach new frontiers Mozambique gas engine power plant - CTRG 2014 2012 Completion of Sasol Two & Three Synfuels and Sasolburg Gas 2007 Chemicals complex in Engine Power Sasol is formed Secunda Plant online to commercialise coal-to-liquids First international GTL plant, Oryx, (CTL) technology 1980 in South Africa starts production in Qatar 1950 Sasol Secunda A new era for Sasol 6 Sasol‘s approach to water management A newA new era forera Sasol for Sasol Sasol’s water footprint is unique CO + 2H2 -CH2- + H2O water resource: water technology: water resource: access and use, recycling, ecosystem security treatment protection Water required at a water footprints vary in impacts have to be very high assurance of size and significance responsibly managed supply fair and secure robust and reliable responsible allocation processes water stewards Water manifests in physical, regulatory, reputational, economic, social and environmental risks – it’s a complex issue 8 A new era for Sasol 8 Our Water Stewardship Program was introduced to focus attention on water challenges transparency public direct policy operations six key focus areas community watershed/ engagement supply chain collective action A new era for Sasol 9 Sasol continues to invest in water technology solutions to secure water access and manage facility water risks A new era for Sasol 10 Sasol’s water requirements in SA are to a large extent met by the integrated Vaal River System Water risks GMM Return flow Eskom To Crocodile 290 mil.m3/a Gauteng Trichardstfontein Sasol Rand Water Secunda Knoppiesfontein Komati & Usutu 3 1450 mil.m3/a 90 mil.m /a transfer schemes Return flow R2 To Vaal Vlakfontein Canal Vaal Barrage Heyshope & Zaaihoek Vaal River R3 Vaal River Vaal River transfer schemes Grootdraai Dam Vaal Dam R1 350 mil.m3 2600 mil.m3 LHWP 780 mil.m3/a Katse Dam 1500 mil.m3 Tugela Tugela River transfer Woodstock Sterkfontein Sasol Sasolburg scheme Dam 22 mil.m3/a Mohale Dam Dam 850 mil.m3 Polihali Dam 2600 mil.m3 (430 mil.m3/a future) A new era for Sasol 11 The growing supply imbalance is a significant risk which we cannot resolve alone High without WC/WDM Desalination for urban use Unlawful removed Risk criteria Sasol exposure to risk of water deficit Violation of risk Criteria Intervention required Min % by 2020 0.5 % Min % 0.5 % 1.0 % 5.0 % 25 % 50 % 75 % 5 % 95 % 1 % 25 % Low Med High 99 % 5.0 % % 1.0 0.5 % 99.5 % Max % Priority class Sasol pioneered a beyond fence line water conservation partnership Responding to long term water security risks • Sasol is dependant on reliable supply from the Vaal River system • Sasol operations account for 4% of the Vaal River system demand A new era for Sasol 13 Sasol has a wide portfolio of water related projects and initiatives Including: • In-house water research and technology development • MOU with Water Research Commission • Strategic Water Partners Network (membership and active participation) • Undertake annual reporting (SDR) and disclosure (CDP Water) • Corporate Social Investment (CSR) programmes • Schools water programme • Partnering with South African Irrigation Institute on farmer training on improving irrigation effectiveness • Boloko Metsi (Sasol, GiZ, Emfuleni water conservation partnership) A new era for Sasol 14 Emfuleni partnership delivered results! • Measured water savings of 6.8 million m3; valued at R37 million and equivalent to 8% of projected demand for targeted project area • 106 000 houses and 94 schools visited • Replaced 9 500 taps and 242 000 washers • Created about 100 local employment opportunities • Extensive water conservation educational and awareness campaign held in the community • Project funded through R 10 million seed funding provided by GiZ and Sasol • a further R16 million provided by Emfuleni to augment the seed funding. A new era for Sasol 15 Sebokeng / Evaton Actual vs Projected Demand achieving savings through fixing leaking taps and toilets A new era for Sasol 16 Concluding remarks • Beyond fence-line water conservation partnerships can save water in meaningful amounts • The initiative to combat vandalism and theft of infrastructure can use the successes of water conservation partnerships as platform to: • Build the collaborative partnerships with communities; • Give momentum to awareness campaigns to highlight need to protect water; • Incentivise the participation of private enterprises by providing formal recognition of efforts which could help upscale and replicate similar partnerships Lessons learnt from Boloko Metsi could be applied elsewhere A new era for Sasol 17 Thank you [email protected] A newA new era forera Sasol for Sasol .
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