Industrial and speciality gas company Air Products South Africa has concluded a power purchase and wheeling agreement with wind and solar power developer Mulilo Renewable Project Developments, which will result in the companies jointly owning a solar farm in the Northern Cape.

Under the terms of the agreement, Air Products will buy up to 75 MW of renewable energy from a dedicated solar farm that will be built in the Northern Cape.

The solar farm will be capable of generating 240 GWh/y of electricity and the companies expect financial close in the fourth quarter of the year.

The electricity will be supplied by wheeling from the solar farm to Air Products’ air separation units (ASUs) at various locations in the country.

Air Products MD Rob Richardson points out that air separation is an energy-intensive process, with electricity being the most significant raw material.

“This agreement marks a step towards meeting our medium-term goal of reducing fossil-fuel-based energy use and carbon dioxide emissions by one-third by 2030.”

He adds that the solar project will assist the company in its decarbonisation journey, with more plans to come.

Mulilo CEO John Cullum comments that the project will be one of the first large-scale wheeling solar projects in South Africa and will contribute to ending loadshedding in South Africa.

Wheeling is the delivery of energy from a generator to an end-user located in another area through the use of an existing distribution or transmission network.

It essentially allows privately generated power to be transmitted across the national grid to customers who want it, in a willing buyer/willing seller model.

Wheeling facilitates renewables-based energy transmission from sites with good wind and solar radiation to corporate, industrial and residential customers whose locations may be less conducive to renewable energy production.