Air Products South Africa (Pty) Ltd (Air Products) has concluded a long-term Power Purchase Agreement with Mulilo Renewable Project Developments (Pty) Ltd (Mulilo). In terms of the agreement, Air Products will purchase up to 75 MW of renewable energy from a dedicated solar farm, which is to be constructed in the Northern Cape. The solar farm will be jointly owned by Air Products and Mulilo. Financial close is anticipated in the fourth quarter of 2023, looking to generation of power supply from mid-2025. The facility will have the capacity to generate about 240 GWh of electricity annually.
The electricity will be supplied by wheeling from the solar farm to Air Products’ air separation units in various locations around the country. Air Products Managing Director Rob Richardson noted: “Air separation is an electrically intensive process and electricity is our most important raw material. This agreement is a significant step towards meeting our medium-term goal, which is to reduce fossil-fuel-based energy requirements and CO2 emissions by one-third by 2030. Once the project is completed, it will get us a long way down that path, with more to come.”
Mulilo CEO, John Cullum said: “Mulilo is excited to partner with Air Products on this important project. It will be one of the first large-scale wheeling solar projects in South Africa and will consolidate Mulilo’s standing as a leading renewable energy supplier in the country. The project is, furthermore, an important step in contributing to ending load shedding in South Africa, where the private sector has the ability to play an important role.”
Wheeling entails the delivery of energy from a generator to an end-user located in another area through the use of an existing distribution or transmission network. It allows privately generated power to be transmitted across the national grid to customers who want it, in a willing buyer/willing seller model. This facilitates renewables-based energy transmission from sites with good wind and solar resources to corporate, industrial and residential customers in locations that may be less suitable to renewable energy production.
For more information visit www.airproducts.co.za or: www.mulilo.com.
