Seriti Green, the renewables development unit of coal miner Seriti Resources Holdings Pty Ltd, expects to reach financial close on a 155-MW wind project in Mpumalanga, South Africa, by the second quarter of 2023.
The company said in a statement last week it was getting ready to “soon” begin construction work on the project, having signed a heads of terms with its parent in relation to a power purchase agreement (PPA) for the entire output of the wind farm. At the same time, Seriti Green is collaborating with Standard Bank and RMB on the financing of the ZAR-4-billion (USD 226.6m/EUR 212.3m) project.
The particular wind farm is being developed as the first phase of the roughly 900-MW Ummbila Emoyeni renewable energy cluster located between Bethal and Morgenzon in Mpumalanga. The complex will include 750 MW of wind and 150 MW of solar photovoltaic (PV) capacity.
Seriti Resources plans to use the purchased electricity for its coal mining operations. Power supply is scheduled to begin by 2025.
Under a memorandum of understanding signed previously by Seriti Resources, Eskom and Exxaro, the coal miner has committed to reduce its carbon dioxide (CO2) emissions by up to 350,000 tonnes per year through the use of renewable energy. The company estimates that this initial wind PPA will transform more than 75% of the energy consumption from its existing coal operations into renewable energy.
(ZAR 1.0 = USD 0.567/EUR 0.531)
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