Sasol and Akuo Sign Virtual Power Purchase Agreement to Reduce Greenhouse Gas Emissions

Strategic Insights -

Sasol, a leading chemical manufacturer, has taken a significant step in reducing its greenhouse gas emissions by signing a virtual power purchase agreement (VPPA) with Akuo, a prominent renewable energy producer. The VPPA will deliver 91 megawatts of renewable energy capacity, equivalent to 50% of the annual electricity consumption at Sasol's Lake Charles location, effectively reducing CO2 emissions by approximately 90,000 tons per annum.

Key Takeaways:

  • Sasol's VPPA with Akuo will provide 91 megawatts of renewable energy capacity, equivalent to 250,000 megawatt hours annually, which is approximately 50% of Sasol's annual electricity consumption at the Lake Charles location.
  • The 15-year agreement will reduce Sasol's CO2 emissions by approximately 90,000 tons per annum and is a key lever in operating facilities in a less carbon-intensive manner.
  • Akuo's Tennyson solar farm, where the renewable energy will be generated, is scheduled to begin operations in the second half of 2026 and is expected to create 400 jobs during construction.
  • Sasol has made significant progress in renewable electricity procurement globally, with notable achievements in Germany, Slovakia, Italy, and China, where it has signed power purchase agreements or implemented renewable energy solutions.
  • The VPPA with Akuo demonstrates Sasol's commitment to reducing its scope 1 and scope 2 emissions by 30% by 2030.
  • 3Degrees, a leading global climate solutions provider, advised Sasol on the agreement.

Statistics:

  • 91 megawatts of renewable energy capacity will be delivered through the VPPA.
  • 250,000 megawatt hours of renewable energy will be provided annually through the VPPA.
  • 50% of Sasol's annual electricity consumption at the Lake Charles location will be covered by the VPPA.
  • 90,000 tons of CO2 emissions will be reduced per annum through the VPPA.
  • 400 employees and contractors will be involved in the construction of Akuo's Tennyson solar farm.
  • 15-year duration of the VPPA with Akuo.
  • 1.9 GW of total capacity in operation or under construction for Akuo as of December 2024.
  • 450 employees of Akuo worldwide.

Sources:

  • Sasol International Chemicals
  • Akuo
  • 3Degrees
  • BusinessWire.com