Sappi has reached a power purchase agreement with Nersa-licensed private electricity trading company Enpower Trading – the first agreement of its kind in South Africa – for 175GWh per year of renewable power.
The renewable power will enable the forestry, paper and pulp group to reduce its Scope 1 and Scope 2 emissions by 4% and 5% respectively, in South Africa.
The companies believe also this first-of-its-kind agreement in South Africa will become a template for other similar agreements, which will also help to resolve the load-shedding challenges faced by big companies in South Africa.
The power supplied to Sappi would be sourced from SolarAfrica Energy’s Sun Central PV project. SolarAfrica Energy, an integrated energy solutions provider, is establishing one of the largest solar farms in South Africa – the 1GW Sun Central PV project located south-east of De Aar in the Northern Cape.
Power would be supplied by the end of December 2025. Enpower Trading intended to supply Sappi with a utility-scale renewable power solution over five years, paving the way for an evolving strategic partnership.
Sappi, a leading global provider of everyday materials made from woodfibre-based renewable resources, has as a focus the building of a more circular economy by making superior alternatives that replace fossil-based products.
“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,” Alex Thiel, CEO of Sappi Southern Africa, said in a statement.
For Enpower Trading, the agreement was important to realising its goal to contribute to the transformation of the South African electricity supply industry, by providing cleaner and more affordable power to the South African marketplace.
“Enpower believes this groundbreaking PPA provides a template solution that, when delivered at scale, presents a key to solving the load-shedding crisis faced by South Africa,” said James Beatty, CEO of Enpower Trading.
The project would bolster generation onto the grid, facilitating greater diversification of energy supply as South Africa advances toward a more competitive energy market, he said in a statement.
The integration of renewable energy into Sappi’s manufacturing processes and operations would require adjustments within its production plants, metering, and billing systems, but the companies planned to overcoming the challenges through planning and collaboration, and leveraging innovative solutions to navigate the transition smoothly.
BUSINESS REPORT