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Post: Sappi and Enpower sign pioneering Power Purchase Agreement

Sappi
Sealing the deal: Brett Eloff (deal origination Enpower), Lavendran Reddy (regional sourcing SappiSA), James Beatty (Enpower CEO), Alex Thiel (SappiSA CEO), Simon Le Roux (trading manager, Enpower), Tyrone Hawkes (strategy, SappiSA), and Stafford Augustine (procurement, SappiSA)

Sappi and Enpower sign pioneering Power Purchase Agreement

In a positive move to reduce its carbon footprint, Sappi Southern Africa has concluded a milestone 175GWh per annum renewable energy Power Purchase Agreement (PPA) with Enpower Trading, a National Energy Regulator of SA (NERSA)-licensed private electricity trading company.

Sappi’s decision to partner with Enpower Trading aligns seamlessly with its broader sustainability goals. It is a significant move towards attaining its Science Based Target (SBTi) objectives. By implementing this renewable energy solution at its multiple South African operations, 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 agreement signed in April, power will be supplied from the end of December 2025. The agreement initiates a first-of-its-kind PPA in which Enpower Trading will supply Sappi with a utility-scale renewable power solution over five years, paving the way for an evolving strategic partnership between Sappi and the trading company.

As a leading global provider of everyday materials made from woodfibre-based renewable resources, Sappi focuses on building a more circular economy by making superior alternatives that replace fossil-based products. Implementing renewable energy trading through this agreement enables Sappi to demonstrate leadership in sustainable business practices whilst reducing its reliance on fossil fuels and ensuring cost-effectiveness.

“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”, says Alex Thiel, CEO of Sappi Southern Africa.

“This will significantly reduce our carbon footprint and reaffirm our support for the sustainable development goal, SDG7: Clean Energy. We are pleased to work with like-minded, sustainable partners to pursue these goals”.

Similarly, it is an important stride toward Enpower Trading realising its goal to contribute to transforming the South African electricity supply industry by providing cleaner and more affordable power to the South African marketplace.

James Beatty, CEO of Enpower Trading, says: “Enpower is delighted to reach this critical milestone with Sappi and looks forward to growing our relationship. We seek to support Sappi in achieving its decarbonisation objectives.

“Moreover, Enpower believes the execution of this ground-breaking PPA provides a template solution that, when delivered at scale, presents a key to solving the loadshedding crisis faced by South Africa”.

SolarAfrica Energy will supply the power supplied to Sappi. The company, an integrated energy solutions provider, is executing one of the largest solar farms in South Africa, the 1GW Sun Central PV project southeast of De Aar in the Northern Cape.

The project will bolster generation onto the grid, facilitating greater diversification of energy supply as South Africa advances toward a more competitive energy market.

Enpower Trading and Sappi have collaborated closely to address potential risks inherent in a pioneering partnership. Although integrating renewable energy into Sappi’s manufacturing processes and operations will require adjustments within its production plants, metering, and billing systems, the partners are committed to overcoming the anticipated challenges through careful planning and collaboration.

Source: WoodBiz Africa Magazine – April 2024 (Page 26)

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