- The three renewable energy projects by Envusa Energy will have a total capacity of 520 MW of wind and solar electricity generation.
- With these agreements, Anglo American Platinum will receive 461 MW of supply, Kolomela mine 11 MW, and Venetia mine 48 MW.
Anglo American has announced that its jointly owned renewable energy venture with EDF Renewables, Envusa Energy, has completed the financing of its first three wind and solar projects in South Africa. The terms and structure of this non-recourse project financing are typical of high-quality renewable energy infrastructure assets.
These three renewable energy projects, the Koruson 2 cluster of projects located on the border of the Northern and Eastern Cape provinces of South Africa, will have a total capacity of 520 MW of wind and solar electricity generation.
Anglo American’s Regional Director for Africa and Australia, Themba Mkhwanazi, said, “The successful project financing of these initial projects marks our first significant step towards addressing Anglo American’s largest remaining source of Scope 2 emissions – our electricity supply in Southern Africa.
“As we progress towards our 2040 carbon-neutral operations commitment, we also see the opportunity to enhance energy reliability and grid resilience in South Africa. We expect energy availability to help catalyse extensive socio-economic activity, critical in unlocking South Africa’s economic development and growth prospects.”
The projects, the Umsobomvu Wind project (140MW), the Hartebeesthoek Wind project (140MW), and the Mooi Plaats Solar project (240MW) form part of Envusa Energy’s mature pipeline of wind and solar projects in South Africa.
Envusa Energy expects the renewable energy ecosystem it plans to develop to supply a mix of renewable energy generated both on Anglo American’s sites in the Southern African region and from other sites from which renewable energy will be transmitted via the national grid.
The Koruson 2 wind and solar projects benefit from outstanding yield resources coupled with a robust Eskom grid connection. This configuration promises considerable electricity cost savings compared to existing tariffs. Anglo American’s three businesses in South Africa (Anglo American Platinum, Kumba Iron Ore, and De Beers) have committed to 20-year offtake agreements with Envusa Energy.
These agreements will see Anglo American Platinum receiving 461 MW of supply, Kolomela mine 11 MW, and Venetia mine 48 MW. All projects are to reach commercial operation during 2026. They also expect this inaugural phase of contracts to decrease approximately 2.2 million tpy of carbon dioxide.
The CEO of EDF Renewables in South Africa, Tristan de Drouas, noted, “Collaborating with Anglo American to apply our extensive global expertise in renewable energy infrastructure development, design, and delivery has been advantageous. With Envusa Energy being developed as a jointly owned venture with Anglo American, we have solidified our long-term commitment to South Africa’s transition to clean energy,”
“The financial close of this initial cluster of projects is the first step towards Envusa Energy’s ambition to roll out 3 to 5 GW of wind, solar and storage projects by 2030. These collective initiatives align seamlessly with EDF Group’s CAP 2030 strategy. This strategy is ambitiously focused on doubling our global net renewable installed energy capacity (including hydropower) from 28 GW in 2015 to 60 GW by 2030.”
In line with both companies’ commitment to supporting a just energy transition, Envusa Energy is exploring a range of black economic empowerment (BEE) and community partnership models that will enable businesses and host communities to share in the benefits created by the development of the renewable energy ecosystem, along its value chain.
The first of these empowerment initiatives includes incorporating a 20 per cent equity investment by Pele Green Energy (Pty) Ltd (an established South African independent power producer) into each of the three project companies delivering the development of the Koruson 2 assets. This is alongside establishing a community trust to manage the financial interests of local communities in the Koruson 2 assets.
Envusa Energy is also incorporating a BEE partner at the business level to demonstrate further the company’s commitment to supporting black economic empowerment. The development of the renewable energy ecosystem presents an opportunity to help build a more collaborative and inclusive economy that places people and the principle of shared prosperity at the heart of development.