o highlights o Commissioned gas turbines to produce electricity from natural gas o Investigating feasibility of producing additional power from natural gas o Studying several opportunities for producing electricity from renewable sources o  Taken a share in a CCS demonstration facility in Norway Sustaining Sasol Lowering the carbon intensity  of electricity Exploring renewable energy 67 annual review 2010 • operating reviews •  sasol new energy We acquired a 40% interest in Thin  Film Solar Technology (TFST) to  commercialise the thin-fi lm photovoltaic  technology developed at the University  of Johannesburg. The other major  shareholder is the South African  Government’s Central Energy Fund.  On completion of further development  and testing of this second-generation  technology, TFST aims to build a 40 MW  photovoltaic panel production facility  in Paarl, near Cape Town. Sasol is  investigating opportunities to develop  third-generation photovoltaic technology  aimed at reducing the cost of  photovoltaic panels. Sasol New Energy is investigating the  feasibility of constructing a 140 MW  gas-fired power plant in Sasolburg. We are  also looking at prospects for hydro-electric  In the year, we built on the group’s  understanding of the various technologies  that exist across these fi elds, assessing  each for opportunities to develop them  further. Our goal is to provide Sasol with  business options that help meet its  long-term greenhouse gas reduction  targets and are supported by viable,  commercially proven technologies. In June 2010, Sasol commissioned two gas  turbines at Sasol Synfuels’ operations in  Secunda to produce electricity from  natural gas from Mozambique. Using  natural gas as a feedstock, rather than  coal, results in 60% lower carbon dioxide  (CO$_{2}$) emissions. These gas turbines will  initially operate in open-cycle mode,  producing 200 megawatts (MW) of power,  which will be sold to state utility, Eskom.  They will later be converted to closed- cycle mode with the addition of heat- recovery steam generators, increasing  the capacity to 280 MW.  Sasol New Energy is considering using  electricity produced from renewable  resources to reduce Sasol’s dependence  on coal as a source of energy in its  Fischer-Tropsch facilities. We are also  investigating opportunities to produce  electricity from renewable sources, under  the renewable energy feed-in tariff (REFIT)  scheme proposed in South Africa. The Sasol group has a long history of, and  valuable experience in, developing and  commercialising innovative technologies.  Working closely with Sasol Technology,  Sasol New Energy intends to leverage this  capability – a key competitive advantage  – in a number of ‘new energy’ fi elds. These  include: energy effi ciency; low-carbon  electricity production; renewable energies;  carbon capture and storage; and cleaner  coal technologies. The more effi cient use  of water is also closely linked to these  imperatives. Sasol’s newest business unit, Sasol New  Energy, started work in earnest in 2010.  We are developing strategies and projects  to ensure Sasol can operate sustainably  into the future and prosper as the world  moves towards lower carbon solutions,  and as water resources become  more scarce.  Sasol has set a target of improving the  energy efficiency of its South African  utility facilities by 15% per unit of  production by 2015, compared with a  base set in 2000. We are well on track  to meet this target. We also intend using  low-carbon electricity and renewable  energy to optimise our FT-based processes  in existing and future facilities. power production, as well as furthering  our understanding of the opportunity  for additional nuclear power capacity in  South Africa.