The construction phase of Sola Group’s solar power plants near Tronox’s mining sites in Africa has begun. The project enters this phase after a financial raise supported by African Rainbow Energy and Power (AREP), Sola’s largest shareholder, which also helped raise R3.1 billion, or $179 million. The Sola project is also supported by the Development Bank of South Africa (DBSA), Absa, Nedbank, and Standard Bank.
PepperTree Capital served as the project’s lead financier. The transaction, which allows Sola to hasten the construction of its solar PV plants, was advised on by the law firms Pinsent Masons, Hogan Lovells, Faskens, Allen & Overy, and ENS. The project will require a total investment of R4 billion (more than $230 million) for an installed capacity of 200 MWp. This electricity will be sold to Tronox Mineral Sands.
To ensure greater module productivity, Sola intends to integrate 387,000 solar panels onto single-axis trackers as part of the project. Wilson Bayly Holmes (WBHO), a South African company, has been contracted to install the various installations and is expected to deliver the work in 2023. Sola has also obtained Eskom’s agreement to transmit electricity through its transmission facilities to power five Tronox facilities in the Western Cape and KwaZulu-Natal provinces.
Eskom will provide 40% of the electricity needed to run Tronox’s facilities, so the mining company is incorporating the project into its sustainability plan. Tronox’s renewable energy project with Sola Group will reduce our overall carbon dioxide emissions by approximately 13% from our 2019 baseline, says Melissa Zona, Tronox’s senior vice president, human resources and sustainability director.
