ArcelorMittal South Africa seeking IPPs to build PV parks across its operations

Steel producer ArcelorMittal South Africa Limited (JSE:ACL) has launched a request for information (RFI) process in search of independent power producers (IPPs) who would build, own and operate 160 MW of solar parks at its six operational sites.

The South African subsidiary of Indian steel and mining company ArcelorMittal Holdings said Monday it intends to enter into a power purchase agreement (PPA) with the chosen IPP to reduce the blended price of electricity and secure a stable supply.

The company has a steel mill in Vanderbijlpark, where its head office is based, and plants in Newcastle, Vereeniging, Pretoria, Thabazimbi and Saldanha. It said the Vanderbijlpark site would have photovoltaic (PV) parks with capacities of 10 MW and 100 MW, whereas other locations will each house 10-MW plants.

The selected IPP, whether one or more, will be in charge of all feasibility studies to confirm the financial and technical viability of the projects. They will also have to carry out the environmental impact assessment and other surveys, secure the required permits and finance and conduct all engineering, procurement and construction work.

ArcelorMittal South Africa said it will make the land for the projects available to the successful bidders.

IPPs can submit their expression of interest by August 28, 2020. The most suitable candidates will receive a request for quotation (RFQ) with the detailed technical scope of work, the steelmaker added.

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