World’s biggest O2 production site to changes hands

Sasol Air Liquide

IN LINE with its plan to reduce its emissions of CO2, Sasol has signed an exclusive negotiation agreement for Air Liquide to acquire the biggest oxygen production site in the world – located at Secunda, Mpumalanga. In this context, Air Liquide would operate the 16 air separation units (ASU) of this site, with an installed capacity of 42 000 tons/day, in addition to the unit it already operates and would launch a multi-year plan to modernize these facilities. In addition to the benefits this would bring in terms of safety, reliability and efficiency, the solution provided by Air Liquide would allow, in coordination with Sasol, a targeted reduction of 30% to 40% in CO2 emissions arising from the oxygen production by 2030. The amount of the initial investment would be approximately R8.5 billion.

The parties aim to negotiate final agreements within the next months. These agreements will be subject to approval by the relevant authorities.

Outsourcing oxygen production to Air Liquide would improve safety, reliability and efficiency, in particular from an energy standpoint thanks to the implementation of highly mastered operational practices, state of the art technologies, modernization investments and digital capabilities to optimize the management of these assets and the energy consumption. In addition, it is the intention to secure large quantities of renewable energy in line with the call for a Sasol tender to supply the Secunda site with 600 MW of renewable energy. The implementation of all these solutions would allow Air Liquide to reduce by 30% to 40% the CO2 emissions linked to oxygen production by 2030, in line with Sasol’s commitment to lower its carbon footprint.