Paper and packaging company Sappi has signed a notable solar energy power purchase agreement (PPA) with Enpower Trading, a private electricity trading company licensed by NERSA. This agreement highlights Sappi Southern Africa’s commitment to reducing its carbon footprint, marking a significant milestone in South Africa’s renewable energy landscape.
PPA to Run for Over Five Years
Sappi’s collaboration with Enpower Trading aligns with its sustainability objectives and helps advance its Science Based Target goals. By providing renewable energy solutions across multiple South African operations, this partnership will decrease Sappi SA and Sappi Limited’s Scope 1 and Scope 2 emissions by 6% and 4% respectively.
According to Engineering News, Sappi will receive power from SolarAfrica Energy’s Sun Central PV project, one of South Africa’s largest solar farms. Located southeast of De Aar in the Northern Cape, the project is being developed by SolarAfrica Energy, an integrated energy solutions provider.
The agreement, set to take effect at the end of December 2025, establishes the key Power Purchase Agreement (PPA) between Sappi and Enpower Trading. Over the next five years, Enpower Trading will provide Sappi with a utility-scale solar power solution, forging a new strategic alliance.
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Both companies expect this agreement to serve as a model for future deals in South Africa, potentially addressing the electricity supply challenges facing large corporations in the region.
Reducing Dependency on Fossil Fuels
Renowned for its wood fibre-based renewable resources, Sappi is committed to advancing a circular economy by offering alternatives to fossil-based products. This PPA further strengthens Sappi’s commitment to sustainable practices, showcasing its leadership in renewable energy while reducing its dependency on fossil fuels and maintaining cost efficiency.
Alex Thiel, CEO of Sappi Southern Africa, says the agreement demonstrates the company’s commitment to using more renewable and clean energy, bringing it closer to its regional and global objectives. This step significantly contributes to lowering Sappi’s carbon footprint and underscores its dedication to Sustainable Development Goal 7: Clean Energy.
“We are happy to be pursuing these objectives alongside sustainable, like-minded partners,” Thiel said.
Contributing to South Africa’s Electricity Supply Industry
For Enpower Trading, the PPA is also a significant step toward its goal of helping transform South Africa’s electricity supply industry by providing cleaner, more affordable power to the local market.
James Beatty, CEO of Enpower Trading, remarks, “Enpower is excited to achieve this crucial milestone with Sappi and eagerly anticipates deepening our partnership. Our goal is to assist Sappi in achieving its decarbonisation goals. 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.”
The initiative will strengthen grid capacity and help diversify energy sources as South Africa progresses toward a more competitive energy market. Enpower Trading and Sappi have also worked closely to address potential risks associated with the partnership.
Incorporating renewable energy into Sappi’s manufacturing processes and operations will require adjustments to its production facilities, metering, and billing systems. However, both companies are committed to careful planning and collaboration to ensure a smooth transition.
