Paper and packaging group Sappi has signed a milestone 175 GWh/y renewable energy power purchase agreement (PPA) with private electricity trading company Enpower Trading.
Sappi is working towards attaining various science-based target objectives, with the renewable energy solution aimed at lowering Scope 1 and 2 emissions by 6% and 4%, respectively, across its South African operations.
Enpower will start supplying Sappi’s operations from the end of December 2025 for five years, which Sappi believes will grow further into a strategic partnership.
Enpower will source power from SolarAfrica Energy’s Sun Central 1 GW PV project, which is being built near De Aar, in the Northern Cape.
Sappi is also manufacturing alternatives that replace fossil fuel-based products, towards building a more circular economy.
The implementation of renewable-energy trading through the PPA enables Sappi to demonstrate leadership in sustainable business practices, as well as reduce its reliance on fossil fuels, while ensuring cost effectiveness.
In turn, the PPA marks an important step in Enpower’s goal to help transform the South African electricity supply landscape by providing clean and more affordable power to the marketplace.
“We believe the execution of this PPA provides a template solution that, when delivered at scale, can solve the loadshedding crisis,” says Enpower CEO James Beatty.
Sappi and Enpower have discussed the potential risks that are inherent in a pioneering partnership of this nature, such as the adjustments that Sappi will need to make within its production plants.
The companies will continue to work out aspects on metering and billing through careful planning and collaboration.