Less than six months after the power purchase agreements were signed in mid-March, the projects’ financial close took place. The projects’ construction will now start.
The projects’ goal is to carry out the terms of a bilateral electricity sales agreement between Tronox Mineral Sands and vertically integrated independent power producer SOLA Group.
Through wheeling agreements with state-owned utility Eskom, these renewable energy installations will provide electricity for five Tronox facilities in the Western Cape and KwaZulu-Natal.
Tronox’s operations are highly energy intensive and this is expected to ensure Tronox’s economic viability and long-term electricity supply affordability.
Tronox’s renewable energy project with SOLA is expected to reduce its global carbon emissions by about 13% compared with its 2019 baseline.
SOLA’s in-house engineering, finance and project development capabilities are posited to have helped to accelerate the conclusion of the deal.
The projects needed to raise R4-billion of funding for construction and development. SOLA reached agreement with funding partner and shareholder African Rainbow Energy.
African Rainbow Energy is a leading renewable energy platform, the largest shareholder in the SOLA Group and the funder of the two projects.
“This is a clear demonstration of African Rainbow Energy’s and partners, Absa, DBSA, Nedbank and Standard Bank’s commitment to our country, the economy, and our customers. This investment brings hope,” says African Rainbow Energy CEO Brian Dames.
