South African chemicals and energy giant, Sasol, and French industrial gases company, Air Liquide, on Tuesday jointly issued a request for proposal (RFP) for the procurement of 900 MW of renewable-energy from independent power producers (IPPs). The tender represents the largest renewable-energy procurement deal from the private sector in South Africa.
The renewable energy procured will power Sasol’s synthetic fuel plant in Secunda, Mpumalanga. Interested renewable energy IPPs and developers have until April 23rd to submit their proposals.
“The introduction of renewable energy will be a significant contributor to our decarbonisation efforts”
South Africa has been battling chronic power shortages that have derailed economic production and slowed down business. Businesses are now looking at alternative power sources to reduce reliance on troubled state utility, Eskom.
Of the procured 900MW renewable energy capacity, 500 MW will be for Sasol and 400 MW for Air Liquide. Successful bidder(s) will supply energy as Independent Power Producer(s), in terms of Power Purchase Agreement(s) to be agreed between the parties.
Sasol says to align with the the Integrated Resource Plan (IRP 2019), Wind and Solar Photovoltaic (PV) technologies are the most preferred for the first tranche of the programme. The individual projects must demonstrate a generation capacity of at least 70MW [~200 GWh per year].
Sasol on a decarbonisation path
Sasol has committed to reduce its greenhouse gas (GHG) emissions at its South African operations by at least 10%, off a 2017 baseline, by 2030. The company says it will leverage its technologies and expertise to deliver a range of high-value product streams, including liquid fuels, chemicals and low-carbon electricity.
The chemicals and energy giant entered into an agreement with Air Liquide for the sale of the Air Separation Units (ASUs) at the Secunda site. Air Liquide also committed to GHG emission reduction interventions over and above those committed by Sasol.
“Due to the highly integrated nature of the Secunda site and the footprint associated with the ASUs, collaboration between the companies is necessary to ensure optimal GHG reduction benefits,” said Lebelo Lukhele, Chief Procurement Officer: Energy Business.
“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,” Lukhele added.
Sasol says it’s looking to explore further decarbonisation avenues to align with their 2030 roadmap. The company last year bought 100,000 carbon offset credits from Bethlehem Hydro via the South African Carbon Offset Administration System (COAS). It will also utilise green hydrogen, natural gas and improve energy efficiency to meet its targets.
Interested bidders on the renewable energy tender may apply for access to the RFP by sending their company profiles with contact details to both: renewable.energy@sasol.com and za-renewable@airliquide.com.
