Sappi signs five year PPA with energy trader in South Africa

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  • In a positive move to reduce its carbon footprint, Sappi Southern Africa has concluded a 175GWh per annum renewable energy Power Purchase Agreement (PPA) with Enpower Trading.
  • Sappi is one of South Africa’s biggest corporate air polluters after Sasol and Arcelor Mittal.
  • The company was fined R8m last year after pleading guilty to a string of air pollution offences at one of its pulp mills on the KwaZulu-Natal coast. Read more
  • It is expected that Sappi SA and Sappi Limited’s Scope 1 and Scope 2 emissions will be reduced by 6% and 4% respectively with the move.

The agreement initiates a first-of-its-kind PPA in which Enpower Trading will supply Sappi with a utility-scale renewable power solution over a five-year period, paving the way for an evolving strategic partnership between Sappi and the trading company

The power supplied to Sappi will be sourced from SolarAfrica Energy’s 1 GW Sun Central PV project is located southeast of De Aar in the Northern Cape.

“This agreement underscores our commitment to increase our share of renewable and clean energy alternatives and moves us closer to reaching our regional and global targets This makes a significant impact in reducing our carbon footprint and reaffirms our support for SDG7: Clean Energy.  We are pleased to be working with like-minded, sustainable partners in pursuing these goals,” says Alex Thiel, CEO of Sappi Southern Africa of the partnership.

Enpower Trading and Sappi have collaborated closely to address potential risks inherent in a pioneering partnership of this nature. Although the integration of renewable energy into Sappi’s manufacturing processes and operations will require adjustments within its production plants, metering, and billing systems, Sappi and Enpower Trading are committed to overcoming the anticipated challenges through careful planning and collaboration, leveraging the innovative solutions provided to navigate this transition smoothly.

Author: Bryan Groenendaal

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