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

Location
South Africa.

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. Sasol has set an official target of reducing its emissions by 10% by 2030, from a 2017 baseline of 63.9-million carbon dioxide equivalent (CO2e) tons yearly to 57.5-million CO2e tons a year. Owing to the highly integrated nature of the Secunda site and the footprint associated with the ASUs, collaboration between the companies is considered necessary to ensure optimal GHG reduction benefits.

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 envisaged commercial operation dates are expected from 2023.

Latest Developments
Sasol reported in its interim financial results for the six months ended December 31, 2021, that it had completed its request for proposal (RFP) process.

Negotiations on the power purchase agreements, which are expected to be finalised in 2022, are in progress.

Key Contracts, Suppliers and Consultants
None stated.

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