Africa Energy Indaba
Africa Energy Indaba

Manganese Metal Company signs deal with energy trader for renewable energy in South Africa

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  • Manganese Metal Company (MMC), a key player in the global manganese industry, has entered into an energy supply agreement with NOA Group to secure an estimated 70% of its electricity from renewable sources.
  • The deal, which leverages NOA’s portfolio of wind and solar PV facilities with a combined capacity of 86 MW, underscores MMC’s commitment to sustainability and alignment with global decarbonisation efforts.

As the custodian of the world’s largest manganese reserves, South Africa plays a pivotal role in producing high-purity manganese metal and manganese sulphate monohydrate for battery electric vehicles.

Karel Cornelissen, CEO of NOA Group, stated: “This Master Energy Supply Agreement (MESA) supports MMC’s strategy to minimise its environmental impact by securing clean, renewable energy in alignment with the decarbonisation goals of its global customer base.”

This MESA effectively decouples the generation of renewable energy from the point of consumption through NOA’s advanced aggregation model and trading platform. Unlike traditional bilateral agreements that are tied to individual generation facilities, this model offers greater flexibility, efficiency, and certainty in energy supply due to the energy being supplied from NOA’s portfolio of generation facilities.

Under this 20-year agreement, NOA will provide a renewable energy profile equating to 245 GWh per annum, facilitated by Eskom’s wheeling framework. By sourcing energy from multiple generation facilities across the country, NOA ensures increased reliability of renewable energy delivery. This approach optimises generation profiles by leveraging diverse geographic and resource-specific characteristics.

As the sole non-Chinese producer of refined manganese metal, MMC is solidifying its position as a leading Western supplier of high-purity manganese variants, which are vital for battery production. Additionally, through its commitment to renewable energy solutions, enhanced water conservation measures, and improved waste recycling processes, MMC has demonstrated its dedication to environmental stewardship and the pursuit of net-zero emissions.

Author: Bryan Groenendaal

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