Coal miner Sereti Resources to construct 150MW wind farm in Mpumalanga, South Africa

  • Seriti Resources and its renewable energy subsidiary, Seriti Green, have announced that Seriti Green will soon begin construction on South Africa’s largest wind farm in Mpumalanga, with power supply coming online by 2025.
  • This follows the signing of heads of terms between Seriti Resources and Seriti Green to a Power Purchase Agreement (PPA) for 155 MW of power that will be generated by Seriti Green and wheeled through the national grid to Seriti Resources’ coal mining operations.

Seriti Green has partnered with Standard Bank and RMB in the financing and development of this initial 155 MW facility with a capex cost of R4 billion. The conclusion of the PPA and meeting of all conditions necessary to commence construction (including reaching a financial close on the project) is expected to be completed by Q2 2023. The Project has already received its Environmental Authorisation from the Department of Forestry, Fisheries and the Environment, a critical requirement to start construction.

The 155 MW Wind Energy Facility is the first phase of a larger, ~900MW renewable energy cluster called Ummbila Emoyeni located between Bethal and Morgenzon in Mpumalanga. Ummbila Emoyeni is a combination of 750 MW wind energy facilities and 150 MW solar PV plants. The entire project has been designated as a Strategic Integrated Project by the Department of Public Works and Infrastructure.

The signing of the PPA, and the development of this first wind farm, is a major first step in the construction of Seriti Green’s larger renewable energy project ambitions, to develop the capacity for 3 000 MW of renewable energy (both wind and solar) in the next decade.

The agreement is in line with the pledge Seriti Resources made in the MoU signed with Eskom and Exxaro, which outlined Seriti’s commitments to use renewable wind and solar energy in its facilities through the signing of PPA’s for the procurement of renewable energy. Under the MoU, Seriti aims to reduce its CO2 emissions by up to 350,000 tonnes per annum, around half of its current emissions.

Author: Bryan Groenendaal

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