TotalEnergies has entered into a Corporate Power Purchase Agreement (CPPA) to decarbonize Sasol and Air Liquide’s production in South Africa. Namely, the CPPA has been signed with Sasol South Africa and Air Liquide Large Industries South Africa. The company will supply about 260 MW of electricity from renewable sources for 20 years.
Green electricity will be supplied by a 120MW solar power plant and 140 wind turbines in the Western Cape region, TotalEnergies said in a statement. Both projects are awaiting regulatory approval. The company will provide about 850 GWh per year at Sasol’s site in Secunda, 700 kilometers further North East, while Air Liquide operates the world’s largest oxygen production site, the statement said.
Green electricity supplied from the two TotalEnergies’ projects will decarbonize Sasol and Air Liquide’s production. The deals also firm up TotalEnergies’ position in the evolution of South African energy mix, putting it in a position where it is a major contributor.
“Power generation in South Africa is still 80 percent based on coal and power cuts occur daily. With these developments we are proud to support Air Liquide and Sasol for their supply of green electricity. Meanwhile, we are pleased to contribute to South Africa’s energy transition which consists of increasing its share of renewables and gas as an alternative to coal” said Vincent Stoquart, Senior Vice President, Renewables at TotalEnergies. “There is a dynamic market for corporate PPAs in South Africa and we want TotalEnergies to take a strong leadership position.”
Both projects are scheduled to come into operation in 2025. TotalEnergies further noted that the CPPAs were signed with a consortium of TotalEnergies Marketing South Africa (70 percent), its partner Mulilo (17 percent) and B-BBEE partner that is yet to be announced (13%).