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HOUSTON - Sasol International Chemicals, a business of Sasol Ltd. (JSE:SOL, NYSE: SSL), a $96.48 million market cap company currently trading below its InvestingPro Fair Value, has signed a virtual power purchase agreement (VPPA) with renewable energy producer Akuo to supply approximately half of the annual electricity consumption at its Lake Charles Chemicals Complex.
The agreement will deliver 91 megawatts or 250,000 megawatt hours annually from Akuo’s Tennyson solar farm being built in Coke County, Texas. According to the press release, the 15-year agreement is expected to reduce Sasol’s CO2 emissions by approximately 90 thousand tons per annum once implemented in the second half of 2026. With a strong current ratio of 4.03, Sasol maintains ample liquidity to support such long-term environmental initiatives.
"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," said Todd Hancock, Vice President of US Operations for Sasol International Chemicals.
The 195MW Tennyson solar plant will be Akuo’s first solar power plant in the United States, with construction expected to employ up to 400 workers. The facility is scheduled to begin operations in the second half of 2026.
This agreement is part of Sasol’s broader efforts to reduce its scope 1 and scope 2 emissions by 30 percent by 2030. The company has also implemented renewable electricity procurement at its manufacturing facilities in Germany, Slovakia, Italy, and China.
Financial terms of the agreement were not disclosed. 3Degrees, a climate solutions provider, advised Sasol on the agreement. While analysts forecast a 9% revenue decline this year, InvestingPro analysis reveals 12 additional key insights about Sasol’s financial outlook and market position. Access the comprehensive Pro Research Report for deeper analysis of Sasol’s strategic initiatives and financial health.
The information in this article is based on a press release statement from Sasol International Chemicals.
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