Agreement Between Greengo And Sasol Italy For The Supply Of Electricity From Renewable Sources

Milan, 26 June 2024 – The Italian branch of the South African multinational group Sasol SPA, has formalised an agreement with GreenGo, a company specialised in the development of power generation plants from renewable sources, for the supply of green electricity for its Italian industrial sites in Augusta, Sarroch and Terranova. For GreenGo, assisted by Parola Associati, this is the first corporate power purchase agreement (PPA), signed as part of the road map to becoming an IPP (Independent Power Producer) in the context of Italy’s energy transition.

The agreement, which is pay-as-produced, stems from Sasol Italy’s commitment to long-term sustainability and has as its object the supply by GreenGo of electricity from five photovoltaic plants in three Italian regions for a total capacity of 24.5 MW. In the same agreement, Sasol Italy will provide for the collection and balancing management of the energy produced within its purchase portfolio for the Italian sites.

The plants, currently under construction, are expected to enter commercial operation in the first half of 2025 and will produce 45 GWh per year, covering more than 20% of the total energy consumed by Sasol Italy’s industrial sites.

The agreement, which will last ten years, will come into effect as soon as the plants go into commercial operation and provides for an innovative pricing system with a zonal price remuneration with a dynamic discount, a floor price, which is also dynamic, able to guarantee the electricity produced by the photovoltaic plants and a cap price that allows Sasol to protect itself from any price shocks.

“The dynamic value of the pricing system allows us to offer the PPA an extreme commercial robustness to the contract by targeting the economic sustainability of our first investment as an IPP,” says Carlos R. Zanol, Head of PPA and Regulation at GreenGo, who continues, “Achieving a high level of bankability and an adequate system of guarantees was the strategic objective of this transaction with a global player like Sasol."

Sebastiano Durante, Manager of Strategic Sourcing Energy & Emissions of Sasol Italy, adds: “This partnership is part of a broader strategy in the name of sustainability of Sasol Italy through the increasing use of renewable energy quotas for its Italian industrial sites, where this long-term commitment represents the concrete demonstration of a social responsibility towards the implementation of the energy transition and towards our goal of reducing emissions.”

About GreenGo

GreenGo, founded in 2018 as a start-up, has rapidly achieved significant milestones, led by Eng. Giuseppe Mastropieri and driven by the exceptional skills and strong dedication of its constantly growing team of high-profile professionals and managers: by the end of 2023, the company now has 50 employees and collaborators, in addition to exclusive agents in the country.

The partnership with the Eiffel Essentiel fund, launched in 2022 with a capitalisation of 7 million euro and renewed with the 15-million-euro equity bridge in 2023, has accelerated GreenGo's growth, leading the company to position itself as a leading player in the Italian and southern European panorama of the development of utility-scale RES plants, as well as to project itself impetuously into the horizon of independent energy production, the primary objective of the current business plan.

To date, GreenGo's pipeline has reached 85 renewable projects in 11 regions for 1.82 GW, with a total of 1.24 GW under approval and over 216 MW already approved/RTB.

Since September 2023, GreenGo has resided in the new green hub S/PARK - Sustainability Workplace, located via G. Matteotti 31/2 in Bologna. The structure, desired and conceived by Fimm S.R.L., represents a significant redevelopment of an

architectonic site of artistic and urbanistic relevance and stands as a point of reference for the Italian green economy, hosting the Group's operations and opening up to companies, professionals, institutions and citizens.

About Sasol Italy

The Sasol sites in Italy belong to the South African Sasol Group, an integrated chemical and energy group that produces and markets premium products in 22 countries. In Italy, Sasol has three plants in Augusta (Syracuse), Terranova dei Passerini (Lodi), and Sarroch (Cagliari) and an office in Milan, with a total of 632 employees. The Italian operations mainly produce intermediate products and raw materials for detergents, personal care products, and other industries such as lubricants, paints, solvents, and jet fuel.

Sasol Italy press contact

Elena Bertuzzi
Communications Manager Italy Chemicals
Phone: +39 3385045018
e-mail: mediarelations@it.sasol.com