LAKE CHARLES, La. (KPLC) – Sasol International Chemicals and Akuo, a leading renewable energy producer and developer, announced the signing of a virtual power purchase agreement (VPPA), which will increase Sasol’s use of renewable energy sources and mark a significant milestone in it’s commitment to reduce its greenhouse gas emissions.

The VPPA will deliver the equivalent of 91 megawatts, or 250,000 megawatt hours, annually of renewable energy capacity. The power will come from the Tennyson solar farm Akuo is building in Coke County, Texas. This amount is approximately 50% of the annual electricity consumption at Sasol’s Lake Charles Chemicals Complex.

Once this agreement is implemented in the second half of 2026, the 15-year agreement will reduce Sasol’s CO2 emissions by approximately 90 thousand tons per annum (ktpa).

“The increased use of renewable energy, through both direct and virtual renewable power purchases at our major production sites, is a key lever in operating our facilities in a less carbon-intensive manner and meeting our goal of reducing our scope 1 and scope 2 emissions by 30 percent by 2030,” said Todd Hancock, Vice President of US Operations for Sasol International Chemicals.

“Through the Tennyson photovoltaic plant, Akuo demonstrates that providing renewable energy directly to businesses seeking to lower their greenhouse gas emissions and fight climate change also contributes to long-term value creation by stabilizing their energy costs. We are proud to collaborate with partners like Sasol in supporting their environmental objectives,” said Eric Scotto, Chairman and co-founder of Akuo.

Akuo already operates two wind farms in Coke County, and the new 195MW solar plant will be Akuo’s first solar power plant in the United States. Its construction is expected to involve as many as 400 employees and contractors. It is scheduled to begin operations in the second half of 2026.

During the last few years, Sasol International Chemicals has been working to rely less on fossil fuel sources for its manufacturing facilities globally, such as:

• Germany – The company has signed power purchase agreements for plants in Marl and Brunsbüttel to replace externally purchased fossil power with renewable power, resulting in a scope 2 reduction for the two plants of approximately 25 ktpa and 5 ktpa, respectively. Additionally, the utility provider for Marl has switched from coal to natural gas, further reducing scope 2 emissions by 70 ktpa.
• Slovakia – The utility provider for the plant in Nováky has switched from coal to nuclear, further reducing scope 2 emissions by 0.3 ktpa.
• Italy – Two 0.5 MW and 1 MW solar power plants located in the Augusta area have been recently built and connected to the public grid.
• China – 30 percent of the annual electricity requirements at the plant in Nanjing is covered by renewable electricity

Financial terms of the agreement were not disclosed.

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