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Sasol and Air Liquide’s first renewable energy PPA for Secunda decarbonisation reaches financial close
Sasol and Air Liquide’s first renewable energy PPA for Secunda decarbonisation reaches financial close
Johannesburg – Global wind and solar company Mainstream Renewable Power has achieved financial close on their 97.5MW Free State solar PV power project.
This follows the signing of a Power Purchase Agreement (PPA) for the long-term supply of renewable power to Sasol and Air Liquide at Sasol’s Secunda operations in South Africa, where Air Liquide operates the world’s largest oxygen production site.
This is the third set of PPAs signed by Sasol and Air Liquide after those announced in the first quarter of 2023 and is the first of the decarbonisation projects to have reached financial close. The solar power plant is scheduled to be operational in 2025.
Priscillah Mabelane, Executive Vice President of Sasol Energy Business said: "We have reached a critical milestone today with our announcement of the first Secunda decarbonisation renewable project reaching financial close. This is significant progress towards Sasol’s ambition to reduce its absolute scope 1 and 2 Greenhouse Gas (GHG) emissions by 30% off a 2017 baseline. Sasol is committed to pursue the renewable procurement as a key lever for reducing GHG emissions, and we have made significant progress in procuring over 600MW”.
As previously communicated, Sasol and Air Liquide have signed close to 600MW for Secunda of which more than 200MW received grid access from Eskom over and above the 97.5MW announced by Mainstream Renewable Power.
Nicolas Poirot, Air Liquide’s Chief Executive Officer of the Africa Middle East & India hub, said: “Together with our long-term partner Sasol, we have secured massive amounts of renewable energy generation capacity. This will significantly contribute to the decarbonisation of our operations in Secunda and actively support the development of renewable energies in South Africa, for the benefit of the South African electrical system and ultimately of the South African society in the context of a Just Transition. In line with Air Liquide’s ADVANCE strategic plan, these PPAs also demonstrate the Group’s capacity to collaborate with its customers to provide solutions which contribute to the decarbonization of its assets as well as of its clients.”
In addition, the Sasol and Msenge Emoyeni Wind Farm agreement for 69MW of renewable energy supply to Sasol’s Sasolburg site reached financial close in early March 2023 and is currently under construction. The project is scheduled to be fully operational in Q2 2024.
Sasol is making significant progress in its Renewable Energy Programme, one of the largest renewable energy procurement programmes from the private sector in South Africa. Learn more https://t.co/OZzxWHVHLo #SasolEnergy pic.twitter.com/WusGbddlGE
— Sasol (@SasolSA) November 21, 2023