Name of the Project
Sasol and Air Liquide large-scale renewable-energy project.

Location
The wind turbines are to be installed in the Kouga and the Oyster Bay municipalities, about 15 km from Humansdorp, in the Eastern Cape, in South Africa, and wheeled over the national grid.

Project Owner/s
Synfuel producer Sasol and industrial gas and services provider Air Liquide.

The companies are acting jointly, following the R8.5-billion acquisition by Air Liquide in July 2020 of Sasol’s air separation units (ASUs) at the Secunda site, in Mpumalanga, which are fully integrated into the chemicals and energy complex.

Project Description
Sasol and Air Liquide formally announced plans in April 2021 to jointly procure 900 MW of renewable-energy capacity from independent power producers (IPPs) by 2031, with an allocation of 500 MW to Sasol and 400 MW to Air Liquide.

In January 2023, Sasol and Air Liquide announced that Enel Green Power would supply 220 MW of wind power to Air Liquide and Sasol. Under two long-term power purchase agreements (PPAs), Enel will deliver the clean electricity to Sasol’s Secunda site through wheeling.

In February 2023, Air Liquide and Sasol signed two PPAs with TotalEnergies Renewables South Africa and its partner Mulilo Energy Holdings for the long-term supply of 260 MW of renewable energy to Sasol’s Secunda site. According to the PPAs, TotalEnergies and Mulilo will create one local majority-owned wind project with a capacity of 140 MW (Mulilo De Aar 2 South Wind Farm), and one local majority-owned solar project (Paarde Valley) with a capacity of 120 MW.

Air Liquide and Sasol signed new PPAs with Mainstream Renewable Power in November 2023 for the long-term supply of 97.5 MW of solar power (Damlaagte) to Sasol’s Secunda site.

In addition, in February 2024, Sasol and Air Liquide signed their third PPA with Enel Green Power for the long-term supply of 110 MW of renewable power to Sasol’s Secunda site.

This brings the total PPAs contributing to renewable-energy capacity secured by Sasol and Air Liquide to about 690 MW.  

In February 2026, Naos-1 hybrid solar and battery project, a 300 MW (435 MWp) solar PV facility with 660 MWh of battery energy storage being developed by SOLA Group, achieved financial close. Enabled by long-term PPAs with Sasol and Air Liquide, the project marks a major milestone in South Africa’s private power market, being the country’s first utility-scale solar PV and battery energy storage system project purpose-built for wheeling to private end-users across the grid.

Potential Job Creation
Not stated.

Capital Expenditure
Not stated.

Planned Start/End Date
Enel Green Power’s three PPAs with Sasol and Air Liquide comprise one wind project that is scheduled to go on line in 2025 and three that are scheduled to go on line in 2026.

Mainstream Renewable Power’s solar project is expected to go on line in 2025.

The targeted commercial operations date for TotalEnergies and Mulilo’s Paarde Valley and Mulilo De Aar 2 is expected at the end of 2026.

Naos’s commercial operation date is targeted for 2028.

Latest Developments
The project has achieved financial close, with commercial operation targeted for 2028.

The project is under construction at a site near Viljoenskroon, in the Free State.

The 100% South African- and 51% black-owned project is majority owned by SOLA, alongside Ubuzwe, with equity financing provided by RMB and Sanlam, while engineering, procurement and construction will be carried out by SOLA Build and WBHO.

SOLA Group has not disclosed the project cost. The South African IPP developed and designed the project, and will also implement and operate what is described as the largest privately contracted hybrid renewable-energy project to reach financial close in South Africa to date.

Naos-1 will comprise a 300 MW (435 MWp) solar PV facility, coupled with 855 MWh (660 MWh contracted to Sasol and Air Liquide) of lithium-ion battery energy storage, with the wheeled electricity to be acquired at “competitive tariffs” by Sasol and Air Liquide. While traditional renewable projects often struggle to meet peak evening demand, Naos-1’s hybrid design enables it to store low-cost solar energy and dispatch it when the grid needs it most. This provides Sasol and Air Liquide with a reliable supply of clean energy at competitive tariffs.

The PPA terms have not been disclosed, but SOLA MD commercial Jonathan Skeen has told Engineering News that the tariff is well below prevailing Eskom rates, and highly competitive relative to tariffs from new wind projects, but with higher certainty of contracted energy volumes and timing.

"The project also achieves much higher buyer savings than a standalone PV-only project of the same size," he has said. 

Financial close was achieved following a multi-lender project finance process involving South Africa’s major commercial banks, including the Development Bank of Southern Africa as the largest senior debt financier, alongside Nedbank, RMB, Investec and Absa.

Key Contracts, Suppliers and Consultants
Enel Green Power and the Perpetua Holdings consortium (wind farms); TotalEnergies and Mulilo (wind and solar projects); and Mainstream Renewable Power (solar project).

Contact Details for Project Information
Sasol head of group media relations Alex Anderson, tel +27 10 344 6509 or email alex.anderson@sasol.com.