JSE- and LSE-listed Tharisa has entered into a long-term power purchase agreement (PPA) for the procurement of wheeled renewable energy for the Tharisa mine, situated on the western limb of the Bushveld Complex, in South Africa.

The 15-year PPA will see Etana Energy meet up to 44% of the Tharisa mine’s electricity demand through the wheeling of electricity generated from wind and solar farms in the Western Cape and Northern Cape using Eskom’s electricity transmission grid.

The wheeled energy is expected to be available to the mine in 2026.

This transaction will enable the Tharisa mine to better manage its electricity costs and benefit from the renewable-energy certificates arising from the transaction, Tharisa notes.

This wheeled energy will complement the Tharisa mine’s own 40 MW solar power plant, which is being developed by TotalEnergies Renewables South Africa and Chariot Transitional Power South Africa and is designed to provide 30% of Tharisa Minerals’ energy needs.

Importantly, the Etana PPA and the solar project will ensure Tharisa Minerals’ drive to reduce its carbon footprint by 30% by 2030 is feasible.

Further, it will also guarantee pre-determined electricity costs for the majority of Tharisa’s energy requirements, with up to 76% of Tharisa Minerals’ energy needs to be met from renewable energy from 2026 onwards, the company points out.

“This second major renewable-energy project is the natural progression in our quest to reduce our reliance on fossil-fuel-driven energy and a major component of creating the sustainable resources company of the future.

“With established partners in the renewable -energy space, I am certain we will not only meet but exceed our carbon reduction targets both in quantum and in terms of our set timeline of 2030,” says Tharisa special projects executive Lucien Matthews.

“We are delighted to have been entrusted as Tharisa’s partner to help realise their ambitious sustainability objectives. This transaction demonstrates how Etana can provide its partners with solutions that give them the comfort to enter into long-term agreements.

“This really is the added value that an aggregator can bring to energy consumers looking to rapidly shift to low carbon energy,” says Etana Energy CEO Evan Rice.

Etana, one of only five companies to hold energy trading licences in South Africa, was granted a 25-year energy trading licence in May 2022.

It has signed and announced several other customer PPAs, including from other mining ventures and property companies.