Air Liquide and Sasol sign 110 MW renewable energy deal

By Global Infrastructure Sherpa · Feb 26, 2024

Ppa WindRenewables signed South Africa Feb 26, 2024

110 MW

Capacity

Air Liquide and Sasol have signed new Power Purchase Agreements (PPAs) with Enel Green Power RSA for the long-term supply of an additional 110 MW of renewable power to Sasol's Secunda site in South Africa. This is the fourth set of PPAs signed by Air Liquide and Sasol, representing a total renewable power capacity of around 690 MW. The deal aims to reduce CO2 emissions associated with oxygen production in Secunda by 30% to 40% by 2031. Enel Green Power will create a local company to build a wind farm in the Eastern Cape province, scheduled to be operational by 2026.

Deal Analysis

Air Liquide and Sasol's agreement with Enel Green Power RSA for an additional 110 MW of renewable power represents a significant step towards decarbonizing Sasol's Secunda operations in South Africa. This Power Purchase Agreement (PPA) is the fourth between Air Liquide and Sasol, bringing their total renewable power capacity to approximately 690 MW. The project aims to reduce CO2 emissions associated with oxygen production at the Secunda site by 30% to 40% by 2031, demonstrating a commitment to environmental sustainability and aligning with global decarbonization efforts. Enel Green Power will establish a local company to construct a wind farm in the Eastern Cape province, expected to be operational by 2026, contributing to local economic development. The involvement of major players like Air Liquide, Sasol, Enel Green Power, and the Qatar Investment Authority (QIA) underscores the scale and importance of this renewable energy project. While the financial value of the deal remains undisclosed, the 110 MW capacity addition is substantial. This deal highlights the growing trend of industrial companies securing renewable energy sources through PPAs to reduce their carbon footprint and enhance their environmental, social, and governance (ESG) profiles. The project's location in South Africa also demonstrates the increasing investment in renewable energy infrastructure across the African continent.

Fourth PPA between Air Liquide and Sasol, totaling 690 MW of renewable capacity.
Aims to reduce CO2 emissions at Sasol's Secunda site by 30-40% by 2031.
Involves major players: Air Liquide, Sasol, Enel Green Power, and Qatar Investment Authority (QIA).
Enel Green Power will build a wind farm in the Eastern Cape province, creating local jobs.

Market Context: The renewable energy sector in South Africa is experiencing growth, driven by government policies, increasing demand for clean energy, and declining costs of renewable technologies. Power Purchase Agreements (PPAs) are becoming a common mechanism for large industrial consumers to secure long-term renewable energy supply and reduce their carbon footprint.