Air Liquide has finalised an agreement with Sasol to acquire the biggest oxygen production site in the world with a plan to reduce its carbon dioxide (CO2) emissions by 30%.
After the announcement on July 29, the international major industry gas company has now entered into a business purchase agreement with Sasol to acquire the oxygen production site in Secunda, South Africa.
The solution provided by Air Liquide would allow, in coordination with energy and chemical company Sasol, a targeted reduction of 30% to 40% in CO2 emissions arising from the oxygen production by 2030.
Under the terms of the business purchase agreement, Air Liquide will own and operate the 16 air separation units (ASUs) of this site, with an installed capacity of 42,000 tons/day, in addition to the unit it already operates today.
Subsequent to the acquisition, Air Liquide will supply various gases to Sasol’s operation under a long-term gas supply agreement with an initial term of 15 years.
The amount of the initial investment would be approximately 8.5 billion South African Rand (circa 440 million euros).
The agreements are subject to usual suspensive conditions (notably the South African Competition Authority’s approval), which should not be fulfilled earlier than December 2020.