South African coal mining giant, Seriti Resources, has announced that it will soon begin construction of a 155 MW wind farm in Mpumalanga to power its coal mining operations in the province. The wind power facility will be developed by Seriti via its recently formed renewable energy subsidiary, Seriti Green, and is expected to come online by 2025.
The coal mining company made the announcement last week following the signing of heads of terms between Seriti Resources and Seriti Green to a Power Purchase Agreement (PPA) for 155 MW of power.
The electricity generated by the wind energy facility will be wheeled through South Africa’s national grid to Seriti Resources’ coal mining operations.
“Seriti Green is proud to partner with Standard Bank and RMB in the financing and development of this initial 155 MW facility with a capex cost of R4 billion,” said Seriti in a statement.
“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.
Bolstering Seriti Green renewables portfolio
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 company says 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 wind farm will be constructed in Mpumalanga, the country’s coal heartland, and will translate into a significant investment in the province along with the creation of jobs, procurement opportunities and social investment expenditure.
“The agreement is the first step in Seriti Resources’ journey towards carbon neutrality. More than that, the addition of 155 MW of renewable energy into the national grid in just two years will contribute to relieving Eskom’s energy constraints,” said Mike Teke, CEO of Seriti.
He notes that 155 MW could power approximately 165,000 average South African households per year.
“It is fitting, we think, that this project will be developed in Mpumalanga, the home of coal mining and Seriti’s own operations. We are very mindful of the need for a just energy transition, where the needs of and responsibilities to those most immediately affected – employees, communities and beyond – are considered and planned for. This is just a first step for Seriti Green,” said Mike Teke.
