French industrial gases company Air Liquide and South African energy company Sasol have inked a long-term renewable energy deal in South Africa.
The companies announced on Monday that they have signed new power purchase agreements (PPA) with Enel Green Power.
The PPAs are for the long-term supply of an additional capacity of 110 MW of renewable power to Sasol's Secunda site in South Africa.
Within the framework of the deal, Enel Green Power, a joint venture between Enel's renewable arm Enel Green Power and Qatar Investment Authority, will create a local company, which will build a wind farm located in the Eastern Cape province.
The renewable energy production facility is scheduled to be operational by 2026.
Air Liquide acquired Sasol's 16 oxygen production units in Secunda and has been operating them since June 2021.
Air Liquide and Sasol have already signed three sets of PPAs. Together, these PPAs represent a total renewable power capacity of around 690 MW.
Air Liquide now said these contracts will represent an annual reduction in its carbon dioxide (CO2) emissions of around 1.2 million tons.
They will also contribute to Air Liquide's targeted reduction by 30% to 40% of the CO2 emissions associated with oxygen production in Secunda by 2031.
Nicolas Poirot, chief executive officer of Africa Middle-East and India, said, "These new renewable electricity supply agreements are yet another sign of our strong joint commitment to decarbonize the production of oxygen in Secunda since Air Liquide took over Sasol's units in 2021.
These long-term contracts will actively support the development of renewable energy in South Africa, for the benefit of the country's electrical system and ultimately of the South African society in the context of a Just Transition."