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Limpopo colliery decarbonising through solar power agreement

Exxaro CEO Dr Nombasa Tsengwa.

Grootegeluk operation.

Grootegeluk in Limpopo.

21st July 2023

By: Martin Creamer

Creamer Media Editor

     

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Financial close has been achieved for the 68 MW Lephalale solar project to supply renewable energy to the Grootegeluk coal mine in Limpopo.

This was announced by Cennergi, a subsidiary of Exxaro Resources, Grotegeluk’s owner and operator. Cennergi will supply renewable energy to the flagship mine for 25 years through a power purchase agreement.

The project will result in energy cost savings, increased energy security and decarbonisation benefits for Exxaro. It will also foster sustainable development and enhance the socioeconomic benefits for local communities.

Leveraging solar power to meet Grootegeluk’s energy needs is a follow-through of the commitment of Exxaro to pursue business sustainability and support the green energy transition.

Funding will take the form of limited recourse project finance debt from lenders, as well as equity investment from Cennergi as sole shareholder.

An engineering, procurement and construction contract will be awarded for the 19-month construction of the project, for which an operations and maintenance contract will also be awarded.

“This project represents a significant milestone in South Africa’s renewable energy landscape and showcases the enormous potential of clean energy in driving economic growth and reducing carbon emissions,” Exxaro CEO Dr Nombasa Tsengwa

said.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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