By: Ecofin agency

The 97.5 MW Damlaagte solar project, developed by Mainstream Renewable Power in South Africa's Free State, has begun commercial operations. As the first decarbonization plant for the Secunda synfuels complex to secure financial closure, it will supply about 270 GWh of clean electricity annually for 20 years to industrial companies Sasol and Air Liquide.

Sasol considers the project a crucial step toward its carbon neutrality goals. "We have reached a critical milestone today with our announcement of the first Secunda decarbonisation renewable project reaching financial close," said Priscillah Mabelane, Executive Vice President of Sasol Energy Business, in 2023. "This is significant progress towards Sasol’s ambition to reduce its absolute scope 1 and 2 Greenhouse Gas (GHG) emissions by 30% off a 2017 baseline." The group has already secured over 600 MW of renewable energy, with a target of 2 GW by 2030.

Air Liquide emphasized the strategic importance of the project, stating that the commercial commissioning of Damlaagte is a key step in decarbonizing its operations at Secunda. The company aims to reduce its local emissions by 30% to 40% by 2031.

In a country where more than 80% of electricity comes from coal and where the state-owned utility Eskom struggles to maintain a stable grid, private power purchase agreements have become an essential tool for industrial companies. The Damlaagte project confirms a significant shift in energy strategy.

However, transforming the Secunda complex will require multiple projects of several hundred megawatts. This is the only credible path for South Africa's industrial giants to align with global climate targets.