The 74-Year History of Sasol: Energy and Chemical Innovation in South Africa

Renowned for its pioneering technologies and significant economic contributions, Sasol continues to shape the world’s energy and chemicals industry. For business owners, marketers, content creators, and anyone intending to learn from successful business stories, the history of Sasol is one of social impact and innovation.

At Business2Community, we’ve consulted a range of sources to provide a detailed account of Sasol’s journey from parastatal to global chemicals and energy giant. Keep reading to discover the company’s key milestones, ventures, and more.

Who Owns Sasol?

As a public company, Sasol is owned by various shareholders. With an 18.74% stake, the Public Investment Corporation (SOC) Ltd is the largest shareholder. This is followed by the Industrial Development Corp. of South Africa Ltd. with an 8.32% stake.

Who Is the Sasol CEO?

The CEO of Sasol is Simon Baloyi, who has held the position since April 2024. Baloyi holds Master’s degrees in engineering management and chemical engineering. He has also served in various management positions since joining Sasol in 2002.

The Sasol board is confident that his strategic outlook, excellent leadership skills, business acumen, and deep knowledge of Sasol’s operations make him aptly qualified to lead Sasol’s transformation. Here is a list of all of the other CEOs Sasol has had in the past.

Despite not being found guilty of misconduct or incompetence, Sasol’s joint CEOs, Bongani Nqwababa and Stephen Cornell chose to step down to restore trust in Sasol in October 2019.

This came after a review of Sasol’s Lake Charles Chemicals Project (LCCP) in the US, which, due to poor weather conditions, delays, and oversights saw the costs of development jump from $8.9 billion to over $12.9 billion.

Growth and Development of Sasol

With headquarters in Johannesburg, South Africa, Sasol is a major producer of liquid fuels and chemical products sold worldwide. The company has three distinct market-focused businesses. Namely: Sasol Chemicals, Sasol Energy, and Sasol ecoFT.

Through proprietary technologies and processes, Sasol produces fuel components, chemical components, and co-products. From these main products and other value-adding processes, the company produces diesel, petrol, kerosene (jet fuel), liquid petroleum gas (LPG), co-monomers, paraffin, and more. Below, we track Sasol’s 74-year history.

1950-1959: Sasol Starts Producing Fuel-Based Synfuels and Chemicals

The license for the development of a coal-to-liquids (CTL) facility in Sasolburg, South Africa, was granted in 1947 and Sasol was established as South African Coal, Oil, and Gas Corporation Ltd, on 26 September 1950.

In early 1951, the company opened its first offices in the Zevenfontein farmhouse near Coalbrook. By October of that year, mining preparations, called the Sigma Colliery were underway.

Construction on a Sasolburg plant started in 1952, with the first units coming into operation in 1954. In 1955, the first phase of construction of the Sasol plant had been completed.

Combining the American Kellogg (Synthol) and German Ruhrchemie-Lurgi (Arge) synthesis processes, Sasol pioneered the commercial application of the ground-breaking Fischer-Tropsch technology, producing the first gasification product in March 1955. On August 23, 1955, the Sasol plant produced its first sample of synthetic oil from coal and its first batch of petrol.

By the end of the year, cars were filling up with Sasol petrol, and the company had produced a variety of petrochemical products including diesel oil and wax.

Parys became the first town outside of Sasolburg to receive fuel in February 1956. Vanderbijlpark followed shortly afterward, becoming the first Sasol Transvaal (Gauteng) market in May. The company began supplying Johannesburg later that August and Pretoria (Tshwane) followed in June 1957. By 1958, Sasol had pumps at 1,245 filling stations in the Transvaal and the Free State.

As of March 1958, Sasol had spent $134.8 million of state capital. Meanwhile, plant availability and production stood at 60%, and 50% respectively, a mere 30% of initially projected output.

1960-1969: Sasol Generates its First Profits

In 1960, the coal-to-liquids (CTL) complex at Sasolburg started producing synthetic fuels and chemicals, with the Synthol reactor completing its first reaction in August of 1960. That year, Sasol generated a profit of R1.36 million ($0.5 million at the time).

In the late 1960s, sales turnover increased steadily. However, profit margins rose only modestly, despite steady improvements in plant availability and efficiency. By the end of the decade, net profit margins had risen to 10.5% from 8.5% in 1960.

1970-1979: Sasol Commissions More Plants

In 1971, Natref refinery (National Petroleum Refiners of South Africa), a joint venture between the Industrial Development Corporation (IDC), Sasol Oil (Pty) Ltd, and Total South Africa (Pty) Ltd began operations.

Due to its inland location, the refinery’s market for heavy fuel oil was quite limited, therefore, it was designed to process medium-gravity crude oil using advanced technology. This allowed the refinery to produce 70% more white product than coastal refineries.

Sasol’s breakthrough came in 1972 when the company succeeded in producing synthetic fuels. The company received an additional boost in 1973 when OPEC hiked oil prices around the world, causing an oil crisis. As a result of the increased oil price, Sasol gained a competitive advantage.

That same year, Sasol petrol that has been developed for Formula One motor racing was supplied for the first time. By 1973, the Sasolburg plant was running efficiently.

As South Africa needed to become less reliant on costly imported crude oil, Sasol announced that it would begin construction on a second industrial site in December 1974. A site 120 kilometers southeast of Johannesburg was strategically chosen due to its coal deposits and access to a water supply. There, Sasol established a new town, Secunda (Latin for second), and began construction of a $2.3 billion Sasol 2 plant.

In February 1977, Sasol announced the planned construction of Sasol 3 at an estimated cost of R3.3 billion ($264 million at the time). The new site was scheduled to begin producing oil in 1982. Together with sites 2 and 3, the site would eventually supply between 30% to 47% of South Africa’s oil needs.

To promote and support cultural diversity, Sasol became the main sponsor of the South African National Youth Orchestra (SANYO) in 1979.

To finance the Sasol 3 plant, the company went public and by the end of 1979, the company had shifted from being a state-owned company to a shareholder-owned enterprise. It had also shed the name South African Coal, Oil and Gas Corporation in favor of Sasol Limited.

1980-1989: Sasol Starts to Meet SA’s Fuel Needs

Sasol synfuels and chemicals complex (Sasol 2) was completed in 1980 and the first product, ammonia, was dispatched to the fertilizer industry. The plant went on to produce its first liquid fuel from coal in March 1980.

June 1980 saw Sasol become a target for political activists looking to force the South African government to end the apartheid system. The June attacks resulted in over $7 million in damage and fuel losses.

In May 1982, Sasol 3 – a replica of the Sasol 2 complex – produced its first hydrocarbon products. By 1983, Sasol 2 and 3 were running smoothly and at capacity. Sasol also formed a new company (now Sasol Nitro) to manufacture and market ammonium nitrate fertilizers.

As of 1986, Sasol’s blue pump market share was 2.1%. The development of a product called Rustblock played a crucial role in the growing popularity of Sasol fuel. The blue pump was available at 2,000 filling stations and 400 wholesale vendors. By 1988, Sasol supplied 27% of SA’s fuel needs.

1990-1999: Sasol Ramps Up Operations

In 1990, a high-purity ethanol plant opened for production in Sasolburg. That same year, the company demonstrated its commitment to supporting the arts by becoming the main sponsor of New Signatures, the longest-running art competition in the country, initiated by the Association of Arts Pretoria in 1967.

Sasol’s involvement with the South African Rally Championship began in 1991, making the company a pioneer in the development of racing fuel. The company went on to sponsor the Jordan Yamaha Formula One team for the 1992, 1993, and 1994 seasons, providing fuel as part of its sponsorship agreement.

The first full-scale Sasol Slurry Phase Distillate (SSPD) Fischer-Tropsch reactor was launched in Sasolburg in 1993, increasing Sasol’s wax production capacity.

To demonstrate its commitment to the conservation of South Africa’s natural heritage, Sasol began sponsoring several birding and environmental publications in 1993.

The next year, Sasol’s operations in Sasolburg went through a significant change when the company formed a joint venture (Polifin) with Anglo Explosives and Chemical Industries (AECI).

As part of Sasol’s goal to help the country nurture world-class soccer talent, the company formed a long-standing partnership with the South African Football Association (SAFA) in 1994 and sponsored the South African national under-23 (SA U23) football team.

In 1995, Sasol’s first Advanced Synthol reactor in Secunda began production. The company partnered with German chemicals firm Schumann, giving the venture control over one-fifth of the international wax market.

By the end of 1995, chemical production accounted for 31% of the company’s operating profits, with income from chemical exports hitting close to $400 million, more than twice the figure for the previous year. In 1999, Sasol bought AECI’s share, taking full ownership of the site now known as Sasolburg Operations’ Midlands Site. The move also made the company the world’s third-largest producer of explosives.

2000-2009: Sasol Goes Global

In 2000, Sasol invested in Malaysian ethylene and polyethylene plants and signed with the Mozambican government to develop gas reserves.

As part of its global expansion, Sasol acquired International Conde Vista in 2001. Not only did this extend the company’s geographical footprint, but it also complemented Sasol’s portfolio of patented technologies, allowing for the production of specialty chemicals.

The move also gave Sasol the platform to establish its presence in Europe and North America, and in 2003, Sasol was listed on the New York Stock Exchange. Global expansion continued with the construction of an environmentally-friendly gas-to-liquids (GTL) venture in Ras Laffan, Qatar.

Locally, Sasol opened its flagship location in Sasol Malanshof in Johannesburg, marking the first retail site in Sasol’s retail network.

In 2004, Sasol Petroleum International commissioned a $1.2 billion natural gas project that saw natural gas produced in Mozambique and sent via pipeline to South Africa. The project enhanced Sasol’s value chain. It also formed the foundation of the Southern Africa gas market by supplying customers in both countries.

That year, Sasol also became the lead sponsor of the South African Rugby team. The six-year agreement included sponsorship of the Springbok Sevens, the South African U-21 teams, and other South African rugby “A” teams.

As of August 2005, Sasol had produced 1.5 billion barrels of synthetic fuel from coal in 50 years. At the time, Sasol supplied 28% of South Africa’s fuel needs from coal mining, saving the country over R29 billion ($5.1 billion) a year in foreign exchange. The company’s market cap had also increased fourfold from R30 billion ($4.7 billion) to over R120 billion ($18.9 billion).

In 2007, Sasol commissioned an ORYX gas-to-liquids (GTL) plant in Qatar. The company also expanded its chemicals business in China by opening an office in Shanghai to market a diverse range of chemical solvents in the region.

For the first time in Sasol’s history, the company implemented a landmark broad-based black economic empowerment (B-BBEE) transaction in 2008. The deal sought to provide previously disadvantaged black South Africans the opportunity to own a part of Sasol.

However, in the same year, the company experienced costly setbacks in Europe. The EU’s competition regulator issued Sasol’s European wax division a fine of $469 million for leading a price-fixing cartel dubbed the “paraffin mafia”. The penalty, payable within three months, was almost 10 times the operating profit generated by the division for the 2008 financial year.

2008 ended on a more positive note with Sasol entering into a joint venture with India’s Tata Group and investing $10 billion in a lucrative coal-to-liquid project in Orissa, India.

In June 2009, the Sasol Fuels Application Centre (SFAC) was opened in Cape Town by Sasol Technology CEO, Pat Davies; Minister of Science and Technology, Naledi Pandor; and the Premier of the Western Cape, Helen Zille. Research carried out at the facility ensured the seamless introduction of GTL diesel into the market.

That year, Sasol also became one of the first companies to develop and support women’s football in South Africa by sponsoring the women’s national soccer team.

Following extensive lab and engine tests between 2001 and 2007, the world’s first fully synthetic jet fuel produced by Sasol was approved for commercial use at the end of 2009.

2010-2019: Sasol Explores New Ventures

In 2010, multiple expansion projects were conducted in Sasolburg, namely:

• The Fischer-Tropsch Wax Expansion Project (FTWEP)
• The Ethylene Purification Unit 5 (EPU5) Project
• The Sasol Gas Engine Power Plant

In 2011, the first third-generation reactor was installed in an extensive Fischer-Tropsch Wax Expansion Project (FTWEP) to double Sasol’s production of hard wax in South Africa.

Internationally, Sasol acquired a 50% stake in Talisman Energy Inc’s Farrel Creek, Canada. Regionally, the company partnered with the Nigerian National Petroleum Corporation. As part of its international growth strategy, Sasol initiated feasibility studies for GTL plants in Western Canada and Louisiana, US.

Sasol also announced plans to build a gas-to-power energy plant in Mozambique in partnership with state-owned Electricidade de Moçambique.

In 2012, Sasol constructed a 140-megawatt electricity generation plant in Sasolburg. It also opened a new R1 billion ($121 million) limestone ammonium nitrate granulation site at its Secunda plant. Additionally, upgrades worth $220 million were completed at the Central Processing Facility in Pande and Temane, Mozambique.

While Sasol achieved stellar financial and operational performance metrics in 2014, the company was embroiled in a pricing scandal that saw it incur a R534 million ($50.8 million) fine. The Competition Tribunal found Sasol guilty of charging domestic customers excessive prices for purified propylene and polypropylene between January 2004 and December 2007.

In one of the largest foreign investment deals in the history of the State of Louisiana, Sasol was granted final approval for an $11 billion ethane cracker and derivatives plant in 2015.

Prioritizing transparency and social responsibility, Sasol provided public access to its environmental authorizations, water use licenses, atmospheric emission licenses, waste management licenses, and mining and prospecting rights for the first time in 2016.

The Lake Charles Chemicals Project, marred by execution issues that eroded public trust in Sasol and incurred billions of dollars in costs, reached a 50% completion milestone by the year’s end.

In 2017, Sasol lodged an appeal with the Supreme Court of Appeal (SCA) over a South African Revenue Service (SARS) tax bill of R1.3 billion ($98 million). A year later, Sasol won the appeal.

Marking the end of the Inzalo BEE scheme founded in September 2008, Sasol paid out R1.3 billion ($92.86 million) to shareholders in 2018. Sasol also completed alumina expansion in Brunsbüttel, Germany, increasing its capacity by 13,000 tons per annum.

Meanwhile, in Qatar, the ORYX GTL project reached a utilization rate of 95%. The company also started the world’s largest oxygen production unit with a total production capacity of 5,000 tons of oxygen per day in Secunda.

In 2019, Sasol entered a R400 million ($26 million) enterprise and supplier development (ESD) agreement with Nduna Maritime to fund South Africa’s first locally owned maritime vessel. The company was also listed on the South African-based independent stock exchange A2X, providing shareholders with an additional trading platform.

The Ethoxylation plant in Nanjing, China reached beneficial operation, producing a capacity of approximately 150 kilotons per annum.

Turnover was over R200 billion ($13 billion) in 2019, up from R172 billion ($12.93 billion) in 2017.

2020-Present: Sasol Looks to a Greener Future

By 2020, Sasol’s retail footprint included over 400 sites across South Africa. Meanwhile, its Secunda CTL plant was named the world’s largest point source of greenhouse gas emissions, producing 56.5 Mt/a CO2 — more than the individual totals of over 100 countries.

Sasol recorded losses of over $5 billion and faced significant challenges in 2020 due to:

• The oil price collapse
• A highly leveraged balance sheet due to its hefty capital investment in the Lake Charles Chemicals Project
• Volatile chemical prices
• The COVID-19 pandemic

Despite a dismal 2020, Sasol delivered a strong set of results for the year ending June 2021. Earnings before interest and tax (EBIT) increased by over 100% and Sasol reduced its debt substantially. The company also published a new decarbonization plan for “Future Sasol”, including targets to reduce its greenhouse gas (GHG) emissions by 30% by 2030. However, stakeholders noted a concerning lack of detail regarding several crucial elements in Sasol’s plan, undermining its feasibility and credibility.

In 2022, Sasol agreed to pay $24 million to settle a class action lawsuit brought by US investors claiming it deliberately understated the cost of its Louisiana chemical plant project.

As of 2023, Sasol Mining operated six coal mines in the world’s largest underground coal mining complex, supplying gasification feedstock for the Southern African integrated value chain.

However, in February 2023, coal quality and mining productivity issues continued to negatively affect Sasol’s Secunda operations. Output levels dropped to around 6.9 million tons, well below historical levels of 7.5 million tons.

That same year, Sasol announced that it was moving beyond a predominant focus on addressing climate change. The company also admitted that it would not meet its initial 2030 emission targets. In response to public outcry, Sasol CEO Fleetwood Grobler clarified that the company had reduced its GHG emissions by more than 40%, or 11 million tons of CO2, since 2004.

He also assured civil rights groups and protestors that Sasol had established a Future Technologies team to support its 2050 net-zero ambition and also allocated approximately R180 million or $9.75 million (roughly 25% of its annual total budget) towards decarbonization-related projects within its research and technology function.

In June 2024, shareholders expressed concern over the company’s plummeting share price, which had dropped by 35%, wiping close to R42 billion (approximately $2.27 billion) off Sasol’s market cap. The company, however, vowed that its new leadership would turn its performance around.

Sasol Stock History

Sasol was listed on the Johannesburg Stock Exchange (JSE) in 1977. In 1979, the company had its IPO and its share offer was 31x over-subscribed. As part of its globalization strategy, Sasol was listed on the New York Stock Exchange in 2003.

During the 1980s, Sasol stock remained relatively stable, increasing from an average share price of $0.72 in 1983 to $0.93 in 1990. By 2000, the share price had tripled to $3.00.

In 2008, the average share price hit a new high of $27 per share and this upward trend continued until 2020 when the share price plunged to $7.50. Since then, the share price has made a slow recovery, fluctuating between $18 in 2022 to $13 in 2023, and an average of $8 in 2024.

History of the Sasol Logo

Over the years, Sasol’s logo has changed to keep up with its evolving identity and aspirations.

1950-2001: The Signature Wordmark

The original Sasol logo featured a stylized white uppercase wordmark. The versatile logo was often adapted for use across a variety of formats. For example, at petrol filling pump stations across the country, the wordmark was paired with a red figure carrying a checkered flag to depict the superior performance and quality of Sasol’s fuel products.

2001-Present: The Sasol Molecule

In 2001, Sasol revamped its logo. While the color blue, traditionally associated with Sasol, was preserved, the company updated its wordmark and incorporated a unique molecular symbol to convey its petrochemical business and technological excellence.

The Future of Sasol

Sasol’s story highlights the power of a diversified strategy. By venturing into various core economic sectors, Sasol has been able to mitigate the risks associated with fluctuations in certain industries.

The company’s success over seven decades also points to the importance of innovation. By constantly upgrading its capabilities and investing in new technologies, Sasol has remained at the cutting edge of the energy and chemicals industry. This has allowed it to adapt to changing market conditions.

Finally, by prioritizing community development, Sasol has realized a multitude of positive benefits. The company has empowered various stakeholders and established one of the strongest brands in South Africa.

Contributing around 5% to South Africa’s gross domestic product (GDP), Sasol plans to continue its commitment to balancing people, planet, and profit objectives for the benefit of the South African economy.

As a world leader in Fischer-Tropsch technology, Sasol envisages net zero fossil fuel-free operations utilizing significant quantities of green hydrogen, renewable energy, and sustainable carbon, while producing sustainable aviation fuels and chemicals for global and local markets by 2050. Given its history of innovation and adaptability, Sasol is well-positioned to meet its transformation goals.

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