Sappi Installs Solar Panels For its South African Operations

In a landmark move for South Africa’s renewable energy sector, global paper and packaging firm Sappi has finalized a significant Power Purchase Agreement (PPA) with Enpower Trading, a NERSA-licensed private electricity trader. The deal secures a substantial supply of clean energy for Sappi’s operations across the country, reinforcing the company’s commitment to sustainability and its science-based decarbonization targets.

A Strategic Partnership as Sappi Installs Solar Panels For its South African Operations

Under the terms of the five-year agreement, Sappi will receive 175 GWh of electricity annually. The power will be generated by one of South Africa’s largest solar farms, the Sun Central PV project, which is being developed by SolarAfrica Energy. Situated southeast of De Aar in the Northern Cape, this large-scale solar power facility is a key component of the nation’s energy transition. The supply of renewable energy to Sappi is scheduled to commence at the end of December 2025.

This initiative is projected to have a considerable impact on Sappi’s environmental footprint, reducing Scope 1 and Scope 2 emissions for its South African division by 6% and for the global Sappi Limited group by 4%. The PPA reached financial close, paving the way for the R1.8 billion construction of Sun Central’s first phase.

Driving Decarbonization with Sappi Installs Solar Panels For its South African Operations

Alex Thiel, CEO of Sappi Southern Africa, highlighted the agreement’s alignment with the company’s strategic goals. “We are happy to be pursuing these objectives alongside sustainable, like-minded partners,” Thiel stated, emphasizing that the deal is a crucial step toward meeting both regional and global objectives. By decreasing its reliance on fossil fuels, Sappi is advancing its commitment to a circular economy and supporting the UN’s Sustainable Development Goal 7 for affordable and clean energy.

The collaboration represents more than just a corporate energy deal; it is being positioned as a potential model for addressing South Africa’s broader energy challenges.

A Blueprint for How Sappi Installs Solar Panels For its South African Operations

For Enpower Trading, the partnership marks a significant achievement in its mission to reshape the country’s electricity supply industry with cleaner and more affordable energy solutions. James Beatty, CEO of Enpower Trading, expressed enthusiasm about the milestone. “Our goal is to assist Sappi in achieving its decarbonisation goals,” he commented. “Furthermore, Enpower sees the implementation of this innovative PPA as a blueprint solution that — when deployed at scale — can serve as a key to addressing South Africa’s load shedding crisis.”

While integrating this new power source will require careful planning and adjustments to Sappi’s manufacturing facilities, metering, and billing systems, both parties are committed to a collaborative process to ensure a seamless transition. This strategic alliance is set to strengthen grid capacity and contribute to a more diverse and competitive energy market in South Africa.

Sources

1. Sappi reaches groundbreaking renewable power purchase agreement
2. Sappi and Enpower Trading celebrate largest private five-year PPA …
3. Group Sustainability Report 2024 | Climate change
4. Sappi Southern Africa Inks 175GWh Renewable Energy Agreement …
5. Sappi signs milestone 175GWh per annum renewable energy …
6. Sappi signs PPA with trading platform to supply solar power to its …
7. Sappi signs milestone 175GWh per annum renewable energy …
8. Sappi and Enpower Trading reach Financial Close on PPA for …
9. Our commitment and targets | Sappi