Question 3 (15 marks) According to the case study, Sasol is very optimistic about its chemicals plant, Lake Charles. This plant was officially completed last year in the United Sates. Grobler stated that the Lake Charles plant is a big part of Sasol's long-term strategy, as this serves as an international growth hub, along Secunda. Grobler also added that there is huge potential to \"green up\" the chemicals portfolio. Justify how the Lake Charles plant serves as an international growth hub to Secunda and other countries and provide recommendations of which other countries the Lake Charles plant can be introduced into and how it will be able to contribute to that specic economy and environment? \fThe group has stepped up its scope 1 and scope 2 greenhouse gas emissions reduction target from 10%- previously, to 30% - particularly related to its energy and chemicals businesses. Sasol has also introduced an energy business scope 3 target - the target is for a 20% reduction in absolute emissions by 2030. Grobler said that up to 2030, approximately 10% to 15% of capital will be spent to achieve the greenhouse gas emissions targets. After 2030, a more signicant portion of capital will be used to achieve net zero emissions. Executive compensation will also be linked to the delivery of these targets, he added. Chief nancial ofcer Paul Victor said that R15 billion to R25 billion will be spent particularly to achieve the 30% emissions-reduction targets. Funds will be spent on gas transition and energy-efciency projects being launched in Secunda, he explained. "That will assist in us reducing our coal dependencyf As for scope 3 targets, Victor said Sasol's export coal mine will be reaching the end of its life and Sasol has no plans to extend its operations, which will contribute to reducing emissions in that regard. New business Last year, Sasol reorganised itself around two core businesses: energy and chemicals, Grobler said. A third business - Sasol ecoFT - will be launched with a specic focus on sustainability solutions such as green fuels for aviation or green ammonia for agriculture and other industries, 'v'ictor told Fin24. "Green ammonia for green chemicals and green jet fuel for green aviation - more industries will come," he added. These products will be developed over the long term. But Sasol plans to develop a proof of concept for green hydrogen in its own business and have the rst pilot going by 2025, Victor said. The development of these products will require partnerships, he said. Sasol is also optimistic of its chemicals plant Lake Charles. The plant in the US was ofcially completed late last year. |Grobler said that Lake Charles is a big part of Sasol's long-term strategy, serving as an international growth hub, alongside Secunda. There is also potential to "green up" the chemicals portfolio, he added