CASE STUDY C&I power project supporting a mining company’s transition to net zero In February 2024, Envusa Energy – a joint venture between Anglo American and French renewable energy independent power producer EDF Renewables – reached financial close on the three Koruson II renewable energy projects totalling 520MW. Commercial operation of the plants is due in 2025 and 2026. The plants are located in the Hydra supply area which overlaps with the south eastern part of Northern Cape province near the border with Eastern Cape and close to the Koruson 400kV main transmission substation to which they will all connect. Via this grid connection, the 140MW Umsobomvu and 140MW Hartebeesthoek wind farms, and the 240MW Mooi Plaats solar PV plant, will supply power to Anglo American mines, smelters, and refineries across South Africa. Anglo subsidiaries Anglo American Platinum (Amplats), Kumba Iron Ore, and De Beers have signed 20-year offtake agreements with Envusa, under which Amplats will get 461MW of supply, Kumba’s Northern Cape Kolomela mine 11MW and De Beers’ Venetia mine in Limpopo 48MW. The supply of sustainable renewable power to operations such as Amplats’ platinum mines and smelters is a fundamental part of both South Africa’s and the world’s transition to net zero. Once platinum ore emerges from Anglo American’s Limpopo mines and is milled, smelted, purified, and refined, it can be used as a catalyst in clean energy technologies, such as fuel cells and hydrogen electrolysers, and can play a key role in producing green hydrogen from renewable energy sources. But for the element to play this vital role in the energy transition, and to find its place in the global market, it must also have been produced with as little impact on carbon emissions as possible. Nedbank CIB led the structuring, negotiation and implementation of a multi-billion rand financing deal for the construction of the first phase of Envusa Energy’s project. It was the co-mandated lead arranger, lender, hedge provider, coordinating bank, technical bank, insurance bank, facility agent and account bank for the deal.
South Africa’s Energy Prospects
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