- Bushveld Minerals Limited, an integrated primary vanadium producer and energy storage solutions provider has announced that it has secured funding for the engineering, procurement and construction (“EPC”) of the Vametco solar/batter hybrid mini-grid, which is owned by its 84%-owned energy subsidiary, Bushveld Energy Limited (“Bushveld Energy”).
Bushveld Energy has completed the development and achieved financial closing for a 3.5 MW solar PV plus a 1 MW / 4 MWh Vanadium Redox Flow Battery (“VRFB”) hybrid mini-grid project for Vametco, which will operate as a funded independent power producer (“IPP”).
Bushveld Energy and NESA Investment Holdings, a South African investment firm, have signed a shareholders agreement as strategic equity partners in the project’s development and financing, with the project being housed in a separate special purpose vehicle (“SPV”).
NESA has provided 60% of the equity, while Bushveld Energy has provided 40%. Bushveld Energy will recognise a development fee of ZAR5.6 million as revenue from the project upon financial close.
ABSA Relationship Banking has approved a ZAR64 million (approximately US$4.1 million) loan to part fund the construction of the mini-grid project.
The project’s total cost is estimated to be ZAR113 million (approximately US$7.1 million).
Site preparation for construction began in Q1 2022. The project is now fully funded and is expected to be completed in the first half of 2023.
Author: Bryan Groenendaal
