Sasol Ltd, the world’s largest producer of fuels and chemicals from coal and gas, is aiming to reduce its emissions by 30% by 2030, and it believes that using renewable energy for its operations will bring financial and environmental benefits.
The company had partnered with Air Liquide in 2021 to jointly procure 1,200MW of renewable energy for their respective operations.
The companies have now signed two Power Purchase Agreements (PPAs) with TotalEnergies and Mulilo to provide renewable power to Sasol’s Secunda site in South Africa. The agreements will supply a total capacity of 260 MW of renewable energy for Secunda, where Air Liquide operates the world’s largest oxygen production facility.
The agreements will create a majority-owned local wind project with 140 MW capacity and a solar project with 120 MW capacity. The projects are expected to become operational by 2025, subject to regulatory and financial approvals.
Sasol and Air Liquide earlier signed deals for 289MW of renewable power with Enel Green Power and Msenge Emoyeni Wind Farm.
These projects are expected to account for around a third of Sasol’s current electricity consumption of 1,500MW by 2025.
“It helps us on our decarbonization journey. It also makes business sense,” said Sasol chief executive officer Fleetwood Grobler, referring to the latest renewable energy deal. “When you look at the escalation of Eskom power price increases and factor in what the renewable power purchase agreements come out at, it becomes economically sensible to go for renewable energy.”
Sources: BIZCOMMUNITY, Sasol
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