Sappi Southern Africa Inks 175GWh Renewable Energy Agreement with Enpower Trading - SolarQuarter
Sappi Southern Africa Inks 175GWh Renewable Energy Agreement with Enpower Trading - SolarQuarter
Sappi Southern Africa has signed a landmark renewable energy Power Purchase Agreement (PPA) with Enpower Trading, a NERSA-licensed private electricity trading company, aiming to reduce its carbon footprint significantly. This agreement, providing 175GWh per annum, aligns with Sappi’s sustainability goals and its Science Based Target (SBTi) objectives. The implementation is expected to cut Sappi SA and Sappi Limited’s Scope 1 and Scope 2 emissions by 6% and 4% respectively.
The energy will be sourced from SolarAfrica Energy’s Sun Central PV project, one of South Africa’s largest solar farms located in the Northern Cape. Power delivery will begin at the end of December 2025 under this five-year PPA, marking a pioneering step in Sappi’s renewable energy journey.
As a global leader in woodfibre-based renewable resources, Sappi focuses on a circular economy, replacing fossil-based products with sustainable alternatives. This agreement allows Sappi to reduce its reliance on fossil fuels, demonstrating its commitment to sustainable practices and cost-effective energy solutions.
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“This agreement underscores our commitment to increasing our share of renewable and clean energy alternatives, moving us closer to our regional and global targets. It significantly impacts our carbon footprint and supports SDG7: Clean Energy. We are pleased to work with sustainable partners to pursue these goals,” stated Alex Thiel, CEO of Sappi Southern Africa.
Enpower Trading aims to transform South Africa’s electricity supply industry by offering cleaner, more affordable power. This partnership will enhance grid generation and diversify South Africa’s energy supply, fostering a competitive energy market.
Both companies are addressing potential risks and challenges, such as integrating renewable energy into Sappi’s manufacturing processes and updating metering and billing systems. Through careful planning and collaboration, Sappi and Enpower Trading are committed to ensuring a smooth transition to renewable energy.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”