Air Liquide and Sasol sign renewable energy PPAs in South Africa

Air Liquide and Sasol have signed two Power Purchase Agreements (PPAs) with TotalEnergies and its partner Mulilo for the long-term supply of renewable power to Sasol’s Secunda site, where Air Liquide operates the world’s largest oxygen production site.

The PPAs will provide a total capacity of 260 MW, adding to the 220 MW signed with Enel Green Power in January, bringing the total to 480 MW. The goal is to reach 900 MW of renewable energy in total to decarbonize the Secunda site.

The projects will create one local majority-owned wind project and one local majority-owned solar project, both to be operational in 2025.

Air Liquide and Sasol launched a joint initiative in April 2021 to procure a total of 900 MW of renewable energy for their operations in Secunda. Air Liquide plans to reduce by 30 % to 40 % the CO2 emissions arising from its operations on the Secunda site through a multi-year investment and modernization plan, as well as a steep increase of the site’s procurement in renewable energies.

Ronnie Chalmers, Vice President and Executive Committee Member of the Air Liquide Group, said: “Not only will these renewable energy capacities significantly contribute to the decarbonization of our operations in Secunda, they will also actively support the development of renewable energies in South Africa, for the benefit of the South African electrical power system and ultimately of the South African society.”

Including another Air Separation Unit (ASU) it already operated for Sasol, Air Liquide now operates a total of 17 ASUs in Secunda, with a total capacity of 47,000 tonnes/day of oxygen. Air Liquide acquired Sasol’s 16 oxygen production units in Secunda and has been operating them since June 2021, in the framework of a long-term supply contract with its long-term partner.

The agreement is subject to regulatory and financial approvals. The companies are negotiating additional PPAs to complete the balance of the renewable energy requested. These PPAs demonstrate the Group’s capacity to collaborate with its customers to provide solutions that contribute to the decarbonization of its assets and clients in line with Air Liquide’s ADVANCE strategic plan, which includes reducing its absolute CO2 emissions by 33% by 2035.