Sasol, one of the biggest greenhouse gas (GHG) polluters in the country, has signed three power purchase agreements (PPA) to supply renewable power to its South African operations.
In one of the biggest renewable energy transactions by the private sector in this country, Sasol, which produces chemicals and petroleum fuels from coal, plans to reduce its GHG emissions from its South African operations by at least 30% by 2030, off a 2017 baseline.
Renewable power is a key lever towards its GHG emission reduction, as part of the group’s planned transition towards a more sustainable product portfolio.
Sasol South Africa (SSA) and Msenge Emoyeni Wind Farm (Msenge) have signed a long-term PPA to supply 69MW of wind-powered renewable power to the group’s Sasolburg operations.
This deal was key to the first production of green hydrogen generated from renewable energy sources at Sasolburg – the group has ambitions of leading the development of a green hydrogen economy in Southern Africa, a statement said.
The renewable capacity is anticipated to be operational within the first quarter of next year.
As part of the decarbonisation of Sasol’s Southern African value chain, Sasol and Air Liquide had signed two long-term PPAs with Enel Green Power to supply a total capacity of 220MW of wind-powered renewable power to Sasol’s Secunda operations.
The two projects are expected to be operational in 2025. The agreements were the first as part of a joint-procurement initiative between Air Liquide and Sasol.
“Sasol and Air Liquide’s efforts to procure a total 900MW of renewable energy to decarbonise our respective operations at Secunda is another step towards Sasol’s aim to procure 1 200MW of renewable energy capacity from IPPs by 2030, one of the largest renewable energy procurement programmes from the private sector in South Africa,” said Sasol Energy Business executive vice-president Priscillah Mabelane.
A study released yesterday by the European Investment Bank, International Solar Alliance and the African Union, with support of the Mauritania government, HyDeal and UCLG Africa showed Africa was capable of producing 50 million tons of green hydrogen a year by 2035, which could be more cost effective than fossil-fuel energy sources, reduce emissions by 40%, and could accommodate domestic energy demand, while enabling the export of green hydrogen to global markets.
In April, 2021 Air Liquide and Sasol launched the largest corporate effort in South Africa to procure a total of 900MW of renewable energy for their operations in Secunda, with an allocation of 500MW to Sasol and 400MW to Air Liquide.
The two group are negotiating with the remaining preferred bidders to this RFP to complete the balance of the renewable energy requested within the coming months.
Air Liquide acquired Sasol’s 16 oxygen production units in Secunda and has been operating them since June, 2021. Air Liquide now operates a total of 17 ASUs in Secunda, with a total capacity of 47 000 tonnes/day of oxygen. Air Liquide plans to reduce by 30% to 40% the CO2 emissions arising from its operations on the Secunda site.
BUSINESS REPORT