SECUNDA – Sasol and Air Liquide joined forces by signing a contract for supplying renewable energy to the Secunda site.
These two companies signed two power purchase agreements (PPA) with Enel Green Power for the long-term supply of a total capacity of 220MW of renewable power.
Air Liquide currently operates the biggest oxygen production site worldwide at Sasol in Secunda.
According to Alex Anderson, Sasol’s senior manager for group media relations and external communication, these PPAs are the first results of the request for a proposal process launched by Sasol and Air Liquide in April 2021 for the procurement of a total capacity of 900MW of renewable energy.
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“They will significantly contribute to the decarbonisation of the Secunda site, and in particular to the targeted reduction by 30% to 40% of the co2 emissions associated with oxygen production by 2031,” said Anderson.
Within the framework of these agreements with Air Liquide and Sasol, two local majority-owned wind projects will be created by Enel Green Power.
The Enel Group subsidiary is dedicated to the development and management of power generated from renewable resources worldwide.
The 220MW wind-powered renewable electricity production capacity is scheduled to become operational in 2025.
“This agreement is subject to regulatory and financial approvals.”
Ronnie Chalmers, vice president and executive committee member of the Air Liquide Group in charge of Africa Middle East and India, said, “By signing these long-term PPAs with Enel Green Power, Air Liquide and Sasol actively support the development of renewable energies in South Africa, for the benefit of the South African electrical power system and the battle against global warming.
“This will also contribute to the South African social transformation through a ‘just transition, and generally to South Africa’s economy and environment.
“In line with Air Liquide’s sustainable development objectives and its ‘advance’ strategic plan, which includes reducing its absolute co2 emissions beginning around 2025 and reaching carbon neutrality by 2050, these PPA also demonstrate the group’s capacity to collaborate with its customers to provide solutions which contribute to the decarbonisation of its assets as well as of its clients.”
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Priscilah Mabelane, executive vice president of Sasol’s Energy Business, said, “Sasol and Air Liquide’s efforts to procure a total of 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. This represents one of the largest renewable energy procurement programmes from the private sector in South Africa.
“Sasol’s Renewable Energy Programme is aligned to the government’s REIPPP programme and plays a key role in creating alternative sources of energy for grid expansion to address South Africa’s current energy capacity constraints.
“Our work in the renewable energy space to secure PPA partners demonstrates the progress Sasol is making towards its decarbonisation and ultimately the development of a green economy.”
Sasol and Air Liquide launched the largest corporate effort in the country in April 2021 to procure a total of 900MW of renewable energy for operations in Secunda, with an allocation of 500MW to Sasol and 400MW to Air Liquide.
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These two companies 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, in the framework of a long-term supply contract with its long-term partner.
Including another air separation unit it already operated for Sasol, Air Liquide now operates a total of 17 air separation units in Secunda, with a total capacity of 47 000 tons of oxygen daily.
Air Liquide plans to reduce co2 emissions by 30% to 40% through a multi-year investment and modernisation plan and a steep increase of the site’s procurement in renewable energies.
