South African mining company Richards Bay Minerals (RBM) has inked a 140 MW Power Purchase Agreement (PPA) with renewable energy developer African Clean Energy Developments (ACED), equity fund IDEAS Fund, investment holding company Reatile Group and finance corporation Rand Merchant Bank.
The agreement will see RBM utilize power generated from the Khangela Emoyeni Wind Farm for a period of 20 years. Once constructed, the wind facility is projected to produce around 460 GWh of power per year and is expected to become operational within 28 months. Through a wheeling agreement with state-owned power utility Eskom, the facility will supply power to RBM’s operations in Richards Bay, KwaZulu-Natal.
James Cumming, General Manager at ACED, stated that “We are immensely proud to have achieved financial close and commenced construction on Khangela Emoyeni Wind Farm with Rio Tinto’s RBM. Not only will it provide RBM with clean energy for their operations, but it will also help alleviate South Africa’s power crisis.”
“Rio Tinto has committed to reducing Scope 1 and 2 emissions by 50% by 2030 and achieving net zero by 2050. The Khangela Emoyeni wind farm has the potential to reduce RBM’s annual carbon emissions by 20% and reduce our existing reliance on traditional energy sources by 26%,” added Werner Duvenhage, Managing Director of RBM and Rio Tinto Iron and Titanium African Operations.
RBM previously signed an agreement with renewable energy developer Voltalia for the Bolobedu Solar PV plant in Limpopo, which aims to generate up to 300 GWh annually and meet 17% of RBM’s energy consumption. Combined, the Khangela Emoyeni Wind Farm and Bolobedu Solar PV projects will fulfill approximately 42% of RBM’s total energy needs.
