MechChem Africa March-April 2025

⎪ PowerGen,PetroChem and Sustainable energy management ⎪

Sappi and Enpower reach financial close on SunCentral PPA Sappi Southern Africa and Enpower Trading are pleased to announce reaching financial close on their groundbreaking 175 GWh per annum, five-year renewable energy Power Purchase Agreement (PPA), which will see Sappi reduce its carbon footprint while advancing South Africa’s renewable energy sector.

Graeme Wild, CEO of Sappi Southern Africa and James Beatty, CEO of Enpower Trading celebrate reaching financial close on their 175 GWh per annum, five-year renewable energy PPA for power from SolarAfrica Energy’s utility scale SunCentral 1 PV plant.

R eaching financial close is a signifi cant milestone, achieved to date by only a select few private power projects in South Africa. This achievement not only underscores the cred ibility and bankability of the five-year PPA, but also reflects the strong confidence shown by financial institutions in Enpower Trading and Sappi’s clean power solution. By facilitating Financial Close for SolarAfrica Energy’s utility scale SunCentral 1 PV plant, valued at R1.8-billion, Enpower Trading has played a pivotal role in driving the project forward, demonstrating its com mitment to advancing renewable energy solutions. “Financial close of the Sappi PPA solidi fies the foundation of this transformative agreement and underscores the strength of our innovative trading solutions,” said James Beatty, CEO of Enpower Trading. “As pio neers of the five-year PPA tenure, Enpower Trading is thrilled to lead the way with this project, which represents the largest private five-year PPA to achieve Financial Close in South Africa. This accomplishment demonstrates the viability and scalability of shorter-tenure utility scale agreements in catalysing renewable energy development.” "Reaching financial close on this agree ment marks a significant milestone for our company and our nation. This achievement not only underscores our commitment

to sustainable energy solutions but also highlights the remarkable progress being made in transforming our country’s energy landscape. “At Sappi Southern Africa, we are proud to be at the forefront of this transformative journey, driving innovation and fostering partnerships that will ensure a brighter, more sustainable future for all. This agree ment enables us to demonstrate leadership in sustainable business practices, reduces our reliance on fossil fuels, and supports SDG7: Clean Energy,” says Graeme Wild, CEO of Sappi Southern Africa. The five-year PPA model offers a ground breaking alternative to traditional long term agreements. By providing tenure flexibility, this model has unlocked new opportunities for companies of all sizes to purchase wheeled energy. Enpower Trading’s leadership in this space has been pivotal in unlocking the potential for short tenure PPAs to drive significant renewable energy investments. “This milestone project illustrates the power of innovation in the energy trading sector,” says Beatty. “Enpower Trading’s ap proach to the five-year PPA model delivers further liquidity to the market by ensuring financial feasibility for developers for a much wider range of projects than tradi tional long-term PPAs only, alongside de livering alignment with the business needs

of energy off-takers like Sappi. We believe this model is a game-changer for the South African market.” The power supplied through this agree ment will reduce Sappi SA and Sappi Limited’s Scope 1 and Scope 2 emissions by 6% and 4%, respectively, aligning with Sappi’s Science-Based Target (SBTi) objec tives and the broader goal of achieving net zero emissions. The SunCentral PV project, operated by SolarAfrica Energy, is a corner stone of South Africa’s renewable energy transition. As one of the country’s largest solar farms, it highlights the potential of private-sector-driven renewable projects to scale up clean energy solutions. “Private-sector innovation is critical to solving the energy challenges facing South Africa,” adds Beatty. “Through this partner ship, we’re not just providing cleaner, more affordable power – we’re enabling an entire ecosystem of cleaner energy development that supports economic growth, decarboni sation, and energy reliability.” The integration of renewable energy into Sappi’s operations is another step in the company’s journey to build a more cir cular economy and reduce reliance on fossil fuels. The collaboration between Sappi and Enpower Trading offers a replicable model for other industrial players seeking to navi gate the transition to clean energy. www.sappi.com

March-April 2025 • MechChem Africa ¦ 21