Sasol share price surges on news it won't limit fuel from coal, while also expanding green energy

Sasol's share price rose 12% on Wednesday, after plummeting over the past year.

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The rally came on the news that the chemicals and energy company is betting more on coal, as well as renewable power.

CEO Simon Baloyi revealed a turnaround plan during Sasol's 'Capital Markets Day' which includes upping its production of fuel from coal while simultaneously expanding its green energy business.

In conversation with Stephen Grootes, Baloyi notes that they already have the infrastructure to maximise fuel production from coal.

However, Sasol will be reducing the coal the company itself uses for electricity, supplementing with renewable energy.

Baloyi says there is enough of a market for the electricity it's producing, and also highlights the development of new product Ampli Energy, launched in partnership with Discovery Limited business, Discovery Green.

It's lauded as a 'market-first' month-to-month renewable energy product that gives businesses of all sizes immediate access to green energy at scale through the national grid.

"And even in the event that electricity becomes cheaper, which we know it will in the future, Sasol is well positioned to take that excess electricity, turn it into hydrogen and use it in our plants... so we'll be able to take that green hydrogen and turn it into sustainable products, both chemicals and fuels."

Simon Baloyi, CEO - Sasol

For more detail, listen to the interview audio at the top of the article