Cennergi Holdings Limited, a wholly owned subsidiary of Exxaro Resources, is pleased to announce the achievement of financial close of its 68MW Lephalale Solar Project (‘LSP”), which will supply renewable energy to Exxaro’s Grootegeluk flagship mine based in the Limpopo Province.
The LSP will serve as a behind-the-meter energy source, directly providing solar power to Exxaro's Grootegeluk mine for 25 years through a power purchase agreement (PPA).
Spanning across a 236-hectare development envelope, the project site is strategically situated in the Waterberg District. Located on Exxaro-owned land adjacent to the existing Grootegeluk mine operations, the LSP is near the town of Marapong and Eskom's Matimba power station.
To ensure the successful realisation of the LSP, the project will be constructed through a fully wrapped, engineering, procurement, and construction (“EPC”) contract. The operations and maintenance (“O&M”) of the solar facility will be entrusted to a highly experienced operator.
The LSP will be financed through limited recourse project finance debt from lenders, as well as equity investment from its sole shareholder, Cennergi Holdings. Construction time is planned for 19 months.
As part of Exxaro’s Sustainable Growth and Impact (SG&I) strategy, the business is committed to the success of this project which will result in energy cost savings, increased energy security and decarbonisation benefits for Exxaro. The project will furthermore foster sustainable development, and enhance the socioeconomic benefits for local communities
"We are thrilled to unveil the Lephalale Solar Project as a landmark renewable energy initiative in partnership with Exxaro," Leon Groenewald, MD Energy at Exxaro Resources.
Exxaro CEO, Dr Nombasa Tsengwa adds: "By leveraging solar power to meet the energy needs of the Grootegeluk mine, is a follow through on our commitment to business sustainability and supporting the transition towards a greener future. This project represents a significant milestone in South Africa's renewable energy landscape and showcases the enormous potential of clean energy in driving economic growth and reducing carbon emissions."