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, 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 from the private sector in South Africa. The renewable electricity generated by the IPPs will supply Sasol’s operations in Secunda, in Mpumalanga.
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
Enel Green Power has been selected by Air Liquide and Sasol to build 200 MW of wind capacity to supply Sasol’s Secunda complex.
The two companies report that they are negotiating with the remaining preferred bidders identified through the request for proposal to procure the balance of the renewable energy within the coming months.
Sasol’s Energy Business executive VP Priscillah Mabelane has said the procurement “demonstrates the real progress Sasol is making towards its decarbonisation” and will also play a key role in creating alternative sources of energy to address South Africa’s current energy capacity constraints.
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.