Energy company TotalEnergies and its consortium partners Mulilo and Reatile Group have reached financial close and started construction on a 140 MW wind farm and 120 MW solar plant, near De Aar, in the Northern Cape, for petrochemicals company Sasol and gas company Air Liquide Large Industries South Africa.

The consortium, which is owned 33.5% by TotalEnergies, 15.5% by Mulilo and 51% by Reatile, last year signed a power purchase agreement with Sasol and Air Liquide to supply 260 MW of renewable electricity over 20 years, which equates to 900 GWh/y of green electricity.

The electricity will be supplied to Sasol’s Secunda site, in Mpumalanga, where Air Liquide operates oxygen production plants, to provide competitive and reliable power supply, as well as decarbonise the operations.

The power plants, being built at a cost of R7.5-billion, will be operational by the end of 2026.

The projects are funded through debt financing from lenders Standard Bank, Absa and Nedbank.

TotalEnergies Renewables South Africa MD Bertrant Bouvet expects these renewable-energy projects to have a direct impact on the local community through job creation, while also contributing to South Africa’s energy transition by increasing its share of renewables and gas as an alternative to coal-fired power.

De Aar was chosen as the project location owing to the region’s exceptional renewable-energy potential.

Mulilo has been negotiating with local landowners since 2008 to secure the most suitable sites for these kinds of projects, reflecting the company’s long-term commitment to developing sustainable energy solutions in the region.

The projects will be connected to the Kestrel main transmission substation, which is still being developed by Mulilo and TotalEnergies. Once completed, the substation will be handed over to Eskom under a self-build agreement.

“This substation is yet another example of how collaboration between the private sector and the government can create positive momentum towards the development of critical infrastructure required for economic growth,” says Mulilo CEO Jan Fourie.