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In an ambitious leap towards enhancing South Africa’s renewable energy footprint, TotalEnergies and its partners, Mulilo Renewable Energy and Reatile Group, have commenced the construction of substantial green energy facilities in the Northern Cape. This initiative, encompassing a 140 MW wind farm and a 120 MW solar power plant, is primarily aimed at powering operations at Sasol’s Secunda site and Air Liquide’s oxygen production facilities.
The project, with an investment of R7.5 billion, is strategically located near De Aar, a region recognized for its exceptional potential for renewable energy generation. This site selection follows extensive negotiations with local landowners by Mulilo since 2008, emphasizing a long-standing commitment to sustainable energy development in the area.
These renewable energy plants are a direct result of a power purchase agreement signed last year with Sasol and Air Liquide. The agreement outlines the supply of 260 MW of renewable electricity over 20 years, which translates to about 900 GWh/year of green electricity. This significant energy contribution is expected to aid in decarbonizing the operations at the Secunda site, fostering a transition to cleaner energy sources.
The projects are set to be operational by the end of 2026 and are funded through debt financing provided by prominent South African banks including Standard Bank, Absa, and Nedbank. This financial structure underscores a strong vote of confidence in the project’s viability and its alignment with South Africa's broader energy goals.
Bertrand Bouvet, MD of TotalEnergies Renewables South Africa, highlighted the multifaceted benefits of these projects, including job creation and the socio-economic upliftment of the local community. These initiatives are not only pivotal in reducing carbon emissions but also play a crucial role in the nation's shift from coal-fired power to a more diversified and sustainable energy mix.
The electricity from these projects will be routed through the Kestrel main transmission substation, under construction by Mulilo and TotalEnergies. This substation, upon completion, will be transferred to Eskom under a self-build agreement, thereby enhancing the country's energy infrastructure.
Jan Fourie, CEO of Mulilo, emphasized the role of such collaborations in driving economic growth and infrastructure development, stating, “This substation is an example of how partnerships between the private sector and government can propel the development of crucial infrastructure.”
The initiative by TotalEnergies and its partners sets a precedent in South Africa’s renewable energy landscape, promising a cleaner, more sustainable energy future.