Sasol signs US renewable power purchase agreement

A virtual power purchase agreement (VPPA) signed with renewable energy producer Akuo will deliver the equivalent of 91 megawatts (MW), or 250,000 megawatt-hours, annually associated with the Tennyson solar farm it is building in Coke County, Texas.

Once implemented in the second half of calendar year 2026, the 15-year agreement will reduce Sasol's CO₂ emissions by approximately 90 thousand tons per annum (ktpa).

"The increased use of renewable energy, through both direct and virtual renewable power purchases at our major production sites, is a key lever in operating our facilities in a less carbon-intensive manner and meeting our goal of reducing our scope 1 and scope 2 emissions by 30% by 2030,” said Todd Hancock, Vice President of US Operations for Sasol International Chemicals.  

Financial terms of the agreement were not disclosed. 3Degrees, a leading global climate solutions provider, advised Sasol on the agreement.

During the last few years, Sasol International Chemicals has made significant progress on renewable electricity procurement at its manufacturing facilities globally.

In Germany, it has signed power purchase agreements for plants in Marl and Brunsbüttel to replace externally purchased fossil power with renewable power, resulting in a scope 2 reduction for the two plants of approximately 25 ktpa and 5 ktpa, respectively.

Additionally, the utility provider for Marl has switched from coal to natural gas, further reducing scope 2 emissions by 70 ktpa.

In Slovakia, the utility provider for Sasol’s plant in Nováky has switched from coal to nuclear, further reducing scope 2 emissions by 0.3 ktpa.

In Italy, two 0.5MW and 1MW solar power plants located in the Augusta area have been recently built and connected to the public grid.

In China, 30% of the annual electricity requirements at Sasol’s plant in Nanjing is covered by renewable electricity.