Sasol International Chemicals, a business of Sasol Ltd., and Akuo, a renewable energy producer and developer, announced the signing of a virtual power purchase agreement (VPPA), marking a significant milestone in Sasol's commitment to reducing its greenhouse gas emissions.
The VPPA will deliver the equivalent of 91 megawatts, or 250,000 megawatt hours, annually of renewable energy capacity associated with the Tennyson solar farm Akuo is building in Coke County, Texas. This amount is approximately 50 percent of the annual electricity consumption at Sasol’s Lake Charles Chemicals Complex. 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 percent by 2030,” said Todd Hancock, Vice President of US Operations for Sasol International Chemicals.
“Through the Tennyson photovoltaic plant, Akuo demonstrates that providing renewable energy directly to businesses seeking to lower their greenhouse gas emissions and fight climate change also contributes to long-term value creation by stabilizing their energy costs. We are proud to collaborate with partners like Sasol in supporting their environmental objectives,” said Eric Scotto, Chairman and co-founder of Akuo.
Akuo already operates two wind farms in Coke County. The new 195MW solar plant will be Akuo’s first solar power plant in the United States. Its construction is expected to involve as many as 400 employees and contractors. It is scheduled to begin operations in the second half of 2026.
During the last few years, Sasol International Chemicals has made significant progress on renewable electricity procurement at its manufacturing facilities globally:
- Germany: The company 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.
- Slovakia: The utility provider for our plant in Nováky has switched from coal to nuclear, further reducing scope 2 emissions by 0.3 ktpa.
- Italy: Two 0.5 MW and 1 MW solar power plants located in the Augusta area have been recently built and connected to the public grid.
- China: 30 percent of the annual electricity requirements at our plant in Nanjing is covered by renewable electricity.
