Chemicals and energy group Sasol has signed three power purchase agreements (PPAs) for almost 300MW of wind energy which will help kick off its decarbonisation plans for its Southern African value chain.
News of the green power agreements did little to boost the Sasol share price, which was flat at R303 a share in Tuesday morning trade. The group also reported a 2% and 5% decline in sales revenues and volumes respectively for its six months to end-December, due to continued operational challenges at its coal mines.
Sasol and Msenge Emoyeni Wind Farm have signed a long-term PPA for the supply of 69MW of wind powered renewable power to the Sasolburg operations and expected to be online within the first quarter of 2024. This, Sasol said, is key in achieving the first production of green hydrogen generated from renewable energy sources at Sasolburg and progressing the group's ambition to lead the development of a green hydrogen economy in Southern Africa.
Sasol and Air Liquide have also jointly signed two long-term PPA’s with Enel Green Power for the supply of a total capacity of 220MW of wind powered renewable power to the Secunda operations.
The three agreements are subject to meeting certain conditions.
The PPAs signal progress in Sasol's plans to reduce Greenhouse Gas (GHG) emissions from South African operations by at least 30% by 2030, off a 2017 baseline.
Sasol is the largest emitter of greenhouse gases in SA after Eskom, and it has committed to a joint procurement initiative to procure a whopping 1 200MW of renewable energy capacity by 2030.
"Renewable power is a key lever towards Sasol’s greenhouse gas emission reduction, as part of our transition towards a more sustainable product portfolio," the group said in a statement.