- Sasol and Air Liquide have launched a RFP to procure 900 MW renewable energy capacity in South Africa by 2030
- Under tranche I, 600 MW will be sought from solar PV and wind energy facilities in 2021 with minimum project capacity of 70 MW
- Of the 600 MW, Sasol will procure 200 MW and Air Liquide 400 MW with winners supplying renewable energy as IPPs
South African petrochemicals firm Sasol and French industrial gas supplier Air Liquide S.A. have solicited proposals from renewable energy suppliers to source 900 capacity under a request for proposals (RFP) round launched.
Solar PV and wind energy technologies are preferred for tranche I with individual project capacity stated as a minimum of 70 MW or 200 GWh annually. Sasol’s Chief Procurement Officer, Energy Business, Lebelo Lukhele said the company is targeting procurement of 1st 600 MW in 2021 representing around 1800 GWh annually of which 400 MW will be allocated to Air Liquide and 200 MW to Sasol. Commercial operations are anticipated for 2023. Successful bidders will enter power purchase agreement (PPA) as independent power producers (IPP).
Renewable energy thus sourced will be used to power Sasol’s synthetic fuel facility in Mpumalanga’s Secunda region.
It is in line with Sasol’s commitment to lower its GHG emissions for company’s South African operations by a minimum of 10% compared to 2017 baseline, by 2030. “Subsequent to setting the 2030 target, Sasol entered into an agreement with Air Liquide for the sale of the Air Separation Units (ASUs) at the Secunda site,” Sasol explained. “It is anticipated that a collaborative approach will not only result in the original Sasol commitment for the Secunda site being met, but will also be exceeded through the combined efforts.”
All of the 900 MW sought will be delivered till 2030 with an end state allocation of 500 MW to Sasol and 400 MW to Air Liquide. Both the partners claim this will be the ‘largest’ renewable energy procurement deal from the private sector in South Africa.
Last date to submit bids, according to the RFP issued, is April 23, 2021.
Previously in August 2020, Sasol solicited proposals for 20 MW solar PV capacity to power its operations at Secunda and Sasolburg following its May 2020 call to procure 600 MW renewable energy from wind and solar PV in South Africa (see Sasol Issues RFP Round For 20 MW Solar Capacity).