Sasol International Chemicals, a subsidiary of South African group Sasol Ltd, and Akuo, a developer specialising in renewable energy, have signed a Virtual Power Purchase Agreement (VPPA), aimed at supplying half the energy requirements of the Lake Charles Chemicals Complex in the United States. The agreement provides that the complex will receive 91 megawatts (MW), equivalent to approximately 250,000 megawatt-hours (MWh) annually, from the Tennyson solar plant currently being built by Akuo in Coke County, Texas.
Agreement features and implications
The 15-year VPPA will come into effect during the second half of 2026. In the long run, this agreement is expected to reduce Sasol’s annual CO₂ emissions by approximately 90,000 tonnes. Todd Hancock, vice-president of US operations at Sasol International Chemicals, stated that this type of agreement is central to the group’s objective of reducing its scope 1 and 2 emissions by 30% by 2030.
Akuo already operates two wind farms in the same county, but the Tennyson photovoltaic plant will mark its first solar installation on US soil. With an anticipated capacity of 195 MW, this infrastructure will require the temporary employment of around 400 workers during the construction phase.
Sasol’s global commitment
The agreement with Akuo is part of a broader set of initiatives undertaken by Sasol to increase its use of renewable energy across its international facilities. In Germany, the company has signed contracts to replace fossil-fuel-derived electricity with renewable solutions at its industrial sites in Marl and Brunsbüttel. According to Sasol’s figures, this move has resulted in an annual emissions reduction of 25 ktpa and 5 ktpa respectively.
In Slovakia, switching the Nováky plant from coal to nuclear energy has reduced emissions by 0.3 ktpa. In Italy, Sasol recently connected two solar plants located in Augusta, with a combined capacity of 1.5 MW, to the electricity grid. Furthermore, in China, around 30% of annual electricity consumption at the Nanjing industrial facility now comes from renewable sources.
Financial details undisclosed
The precise financial terms of the agreement between Sasol and Akuo have not been disclosed. Sasol International Chemicals specified that it had been advised by 3Degrees, a company specialising in climate solutions, during negotiations for this specific agreement.
This type of agreement is becoming increasingly common among large industrial companies, highlighting a global trend towards diversified and increasingly renewable-oriented energy supplies.
