Name of the Project
Sasol and Air Liquide large-scale renewable-energy project.

Location
The wind turbines are to be installed in the Kouga municipality and the Oyster Bay local municipality, about 15 km from Humansdorp, in the Eastern Cape, in South Africa, and wheeled over the national grid.

Project Owner/s
Synfuel producer Sasol and industrial gas and services provider Air Liquide.

The companies are acting jointly, following the R8.5-billion acquisition by Air Liquide in July 2020, of Sasol’s air separation units (ASUs) at the Secunda site, in Mpumalanga, which are fully integrated into the chemicals and energy complex.

Project Description
Sasol and Air Liquide formally announced plans in April 2021 to jointly procure 900 MW of renewable-energy capacity from independent power producers (IPPs) by 2030.

During the initial procurement phase, Air Liquide will procure 400 MW and Sasol 200 MW, while the individual projects must demonstrate a generation capacity of at least 70 MW, which will position them to produce about 200 GWh/y of electricity. 

The transaction represents the biggest renewable-energy procurement deal by the private sector in South Africa. The renewable electricity generated by the IPPs will supply Sasol’s operations in Secunda.

Both companies have committed to reducing their greenhouse-gas (GHG) emissions. The emission-reduction commitment, which was unveiled in 2021, has been made against a 2017 baseline of 63.9-million carbon dioxide equivalent (CO2e) tons and implies a reduction  to 44.7-million CO2e tons by 2030.

The group has also pledged to be a net-zero emissions company by 2050.

Potential Job Creation
Not stated.

Capital Expenditure
Meridian Economics estimates that the project will require an investment of between R12-billion and R13-billion, excluding the financing costs during construction.

Planned Start/End Date
The renewable electricity from the projects is scheduled to be operational in 2025.

Latest Developments
Sasol CEO Fleetwood Grobler has said that it has signed five power purchase agreements (PPAs) in South Africa to date, increasing the company’s procurement of renewable energy for its South African operations to 550 MW.

Further agreements are expected to be concluded this year, in line with its goal of procuring 1 200 MW of renewable electricity by 2030.

Speaking during the release of the company’s interim results on February 21, Grobler confirmed that a further 260 MW of wind and solar electricity had been procured in partnership with Air Liquide, which operates 16 oxygen production units at Sasol’s Secunda complex.

In a joint announcement, Sasol and Air Liquide reported that PPAs for wind and solar electricity had been signed with TotalEnergies and its partner Mulilo, which would build a 140 MW wind project and a 120 MW solar project and that the generators would be operational in 2025.

In January, the two companies also signed two PPAs with Enel Green Power for 220 MW of wind capacity as part of a commitment to jointly procure 900 MW, with Sasol procuring 500 MW and Air Liquide the 400 MW balance. To date, Sasol and Air Liquide have now jointly procured 480 MW.

Key Contracts, Suppliers and Consultants
Enel Green Power (wind turbines).

Contact Details for Project Information
Sasol head of group media relations Alex Anderson, tel +27 10 344 6509 or email alex.anderson@sasol.com.