TotalEnergies Bags Private Solar & Wind PPAs In South Africa

• Sasol and Air Liquide have contracted an additional 260 MW renewable energy capacity to power the Secunda site operations in South Africa
• This capacity will be developed by TotalEnergies and Mulilo as a 140 MW wind and 120 MW solar power plant; both to come online in 2025
• This capacity along with 220 MW the 2 offtakers signed up for with EGP recently takes their renewable energy procurement to 480 MW out of 900 MW they seek under a competitive solicitation process launched in April 2021

French energy company TotalEnergies and its partner Mulilo will supply solar and wind energy from 260 MW capacity in South Africa to power the world's 'biggest' oxygen production plant after the duo were selected by Sasol and Air Liquide under their 900 MW solicitation drive for renewable energy launched in April 2021 (see RFP For 900 MW Renewable Energy In South Africa).

TotalEnergies and Mulilo will establish a 140 MW wind and 120 MW solar project, both local majority owned, and bring them online in 2025 under the 260 MW contract.

South African petrochemicals firm Sasol and French industrial gas supplier Air Liquide recently signed up to receive wind energy from a 220 MW project of Enel Green Power (EGP) for the Secunda located oxygen production site. With this and 260 MW contracted now, the 2 companies have now contracted 480 MW out of 900 MW sought (500 MW Sasol and 400 MW Air Liquide).

Air Liquide has been operating 16 oxygen production units it acquired from Sasol since June 2021 and another air separation unit (ASU) it was already operating for Sasol. All these 17 sites in Secunda can produce 47,000 tons oxygen daily.

The French company aims to bring down its Scope 2 carbon emissions at Secunda site by 30% and 40% and sees the 900 MW procurement drive as a significant step in this direction.

"Not only will these renewable energy capacities significantly contribute to the decarbonization of our operations in Secunda, where we operate the biggest oxygen production site in the world, 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," said Vice President and Executive Committee Member of the Air Liquide Group, in charge of Africa Middle East and India.

Bilateral deals like these should be interesting to South Africa where sole government owned utility Eskom's aging electricity infrastructure has practically broken down. Outages that continue for hours at stretch is hampering the country's economic and social life.

In view of this, President Cyril Ramaphosa recently declared a national state of disaster in South Africa to respond to the electricity crisis and its effects.

"The state of disaster will enable us to provide practical measures that we need to take to support businesses in the food production, storage and retail supply chain, including for the rollout of generators, solar panels and uninterrupted power supply," Ramaphosa stated during his State of the Nation Address in February 2023.

To accelerate renewable energy development, the South African government has also brought down local content for solar panels from 100% to 30% (see South Africa To Launch Tenders For Around 15 GW RE Capacity).