Sasol and Air Liquide large-scale renewable-energy project, South Africa – update

5th July 2024 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

Sasol and Air Liquide large-scale renewable-energy project, South Africa – update

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

Location
South Africa Free State and Eastern Cape provinces

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 2031, with an allocation of 500 MW to Sasol and 400 MW to Air Liquide.

In January 2023, Sasol and Air Liquide announced that Enel Green Power would supply 220 MW of wind power to Air Liquide and Sasol. Under two long-term power purchase agreements (PPAs), Enel will deliver the clean electricity to Sasol’s Secunda site through wheeling. 

Further to this, in February 2023, Air Liquide and Sasol signed two PPAs with TotalEnergies and its partner Mulilo for the long-term supply of 260 MW of renewable energy to Sasol’s Secunda site. According to the PPA, TotalEnergies and Mulilo will create one local majority owned wind project with a capacity of 140 MW and one local majority owned solar project with a capacity of 120 MW.

Air Liquide and Sasol signed new PPAs with Mainstream Renewable Power in November 2023 for the long-term supply of 97.5 MW of solar power to Sasol’s Secunda site. 

In addition, in February 2024, Sasol and Air Liquide signed their third PPA with Enel Green Power for the long-term supply of 110 MW of renewable power to Sasol’s Secunda site. 

This brings the total PPAs contributing to renewable-energy capacity secured by Sasol and Air Liquide to about 690 MW.  

Potential Job Creation
Not stated.

Capital Expenditure
Not stated.

Planned Start/End Date
Enel Green Power’s three PPAs with Sasol and Air Liquide comprise one wind project that is scheduled to go online in 2025 and three that are scheduled to go online in 2026.

TotalEnergies and Mulilo’s wind power projects are scheduled to be operational in 2025.

Mainstream Renewable Power’s solar project is also expected to go online in 2025.

Latest Developments
As of February 2024, about 430 MW had achieved financial close.

Key Contracts, Suppliers and Consultants
Enel Green Power and the Perpetua Holdings consortium (wind farms); TotalEnergies and Mulilo (wind and solar projects); and Mainstream Renewable Power (solar project).

Contact Details for Project Information
Sasol head of group media relations Alex Anderson, tel +27 10 344 6509 or email alex.anderson@sasol.com.
Air Liquide, tel +27 87 288 1100 or email media@airliquide.com/ IRTeam@airliquide.com.