South African platinum group of metals (PGMs) producer, Northam Platinum, has signed a 20-year Power Purchase Agreement (PPA) for the 140MW Karreebosch Wind Farm (RF) (Pty) Ltd (Karreebosch). The wind power plant reached financial close this week and is being constructed in-between the towns of Sutherland in the Northern Cape and Matjiesfontein in the Western Cape.
The wind power plant will be 80% owned by Cennergi, a wholly owned subsidiary of Exxaro, and the remaining 20% stake will be owned by South African independent power producer, G7 Renewable Energies (G7).
Karreebosch is expected to deliver 460GWh of wheeled electricity to Northarm Platinum’s three mining and processing operations annually. Construction of the wind power project will commence immediately, with power being available in the 2027 financial year.
The PPA for Karreeboscch is the second significant renewable energy deal for Northam, following the finalisation of a PPA in respect of an 80MW solar power plant to service its Zondereinde mine. The PGMs producer is hoping to reduce its carbon footprint by up to 45% through the renewable energy supply deals, while providing substantial energy cost savings and improving security of power supply.
“This latest agreement, relating to our second major renewable energy plant, represents a further milestone in this ambition. The environmental, operating cost and energy security benefits implicit in these initiatives further ensure the success of our world-class operations well into the future,” said Paul Dunne, Northam’s Chief Executive Officer.
Karreebosch wind farm’s socio-economic impact
The wind power project will be constructed at a total investment of R4.7 billion, which was arranged by Nedbank Limited (acting through its Nedbank Corporate and Investment Banking Division), Standard Bank Limited and Absa Bank Limited. An estimated 1,030 construction jobs and 17 permanent operational roles are expected to be created from the project.
Karreebosch will add 112MW net capacity to Cennergi’s existing 297MW, bringing total managed capacity to 409MW. This will help support the company’s ambition to manage a capacity of 1.6GW by 2030.
“Reaching financial close with our partners G7 and Northam reaffirms Exxaro’s commitment to decarbonisation and diversification as set out in its Sustainable, Growth, and Impact strategy and underscores our commitment to delivering reliable and sustainable energy solutions. This project not only strengthens South Africa’s industrial energy security but also accelerates the country’s transition to renewable energy,” said Leon Groenewald, Cennergi’s Managing Director.
