Enel Green Power, the Enel Group subsidiary dedicated to the development and management of power generated from renewable resources worldwide, has signed two long-term Power Purchase Agreements, with Air Liquide Large Industries South Africa (Air Liquide) and Sasol South Africa (Sasol) respectively, to supply a total capacity of 220 MW of renewable energy to Sasol’s Secunda site, where Air Liquide operates the world’s largest oxygen production facility. The agreements are subject to regulatory and financial approvals.
The PPAs will see the supply 220 MW of wind energy, to be wheeled from two wind farms in the Eastern Cape, to Sasol’s Secunda site.
The PPAs represent the first results of a joint Request for Proposals (RFP) process initiated by Air Liquide and Sasol in April 2021 for the procurement of a total capacity of 900 MW of renewable energy for their operations, the largest such corporate effort in South Africa.
The renewable energy will be supplied by two Enel Green Power wind projects, with an expected annual production of more than 800 GWh and located in the Eastern Cape, and will be wheeled to the Sasol Secunda site.
“We are proud to partner with Sasol and Air Liquide on their sustainability journey. The deal will contribute significantly to the decarbonisation of the Secunda site, reducing CO2 emissions that arise from the oxygen production process by between 30% and 40% by 2031,” says Manuele Battisti, Country Manager for Enel Green Power South Africa.
Within the framework of the agreements, the two wind projects will be implemented through special purpose vehicles (SPVs) dedicated to each project, which will be locally majority-owned.
The agreements are an example of the tailored renewable energy solutions that Enel Green Power offers to commercial and industrial customers to help them achieve their sustainability goals, and they are aligned with the Stewardship Model the company has adopted as part of its strategic growth plan.
“In addition to supporting the achievement of sustainability goals, purchasing energy through an independent power producer allows for clearer financial planning through tariff visibility and a reduction of the continual operational risks associated with conventional energy cost fluctuations, with increases that are based solely on the consumer price index,” Battisti adds.
Enel Green Power, through Enel Green Power South Africa, currently operates over 1.2 GW of renewable energy at its 12 sites located throughout South Africa. Achieving this milestone is a significant landmark for the company and the country, and a notable step towards helping South Africa meet its target of installing 17.7 GW of wind power and 8.2 GW of solar photovoltaic power by 2030. Agreements with customers such as Sasol and Air Liquide are another step towards helping all parties involved to achieve these goals.
In a separate statement issued regarding the agreements, Ronnie Chalmers, Vice President and Executive Committee Member of the Air Liquide Group, in charge of Africa, Middle East & India, said: “By signing these long-term PPAs with Enel Green Power, Air Liquide and Sasol are actively supporting the development of renewable energies in South Africa, for the benefit of the South African electrical power system and the fight against global warming. This will also contribute to South Africa’s social transformation and a Just Energy Transition, and more generally to South Africa’s economy and environment. In line with Air Liquide’s sustainable development objectives and its ADVANCE strategic plan, which include reducing its absolute CO2 emissions starting from 2025 and reaching carbon neutrality by 2050, these PPAs 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 those of its clients.”
Priscillah Mabelane, Executive Vice President of Sasol’s Energy Business says, “Sasol and Air Liquide’s efforts to procure a total of 900 MW of renewable energy to decarbonise our respective operations at Secunda is another step towards Sasol’s aim to procure 1 200 MW of renewable energy capacity from IPPs by 2030. That represents one of the largest renewable energy procurement programmes from the private sector in South Africa.
“Sasol’s Renewable Energy Programme is aligned with government’s REIPPP Programme and plays an important role in creating alternative sources of energy for grid expansion to address the country’s current energy capacity constraints. Our work in the renewable energy space to secure PPA partners demonstrates the real progress Sasol is making towards its decarbonisation and, over time, the development of a green economy,” Mabelane added.
Looking to procure a total of 900 MW of renewable energy for their Secunda operations Sasol and Air Liquide are negotiating with the remaining preferred bidders on the April 2021 RFP to complete the balance of the renewable energy requested within the coming months.
For more information visit: www.enelgreenpower.com/countries/africa/south-africa