SOLA Group, Tronox ink PPAs for mining operations in South Africa

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SOLA Group, Tronox ink PPAs for mining operations in South Africa

SOLA Group, and Tronox have entered into a long-term power purchase agreement (PPA) to provide 200 MW of solar power to Tronox’s mines and smelters in the Republic of South Africa.

The energy will be provided to Tronox through wheeling agreements, which allow Eskom to be paid for the maintenance and upkeep of its infrastructure to transport the energy. The project is expected to be fully implemented by the fourth quarter of 2023.

It will be majorly owned and operated by SOLA Group and will deliver around 540 GWh of energy to five mining operations through long term power purchase agreements. The developments make use of the government’s recent relaxation of licensing requirements which exempt projects up to 100MW in size from requiring a generation license.

Large scale energy

“Tronox’s renewable energy project with SOLA Group will reduce our global carbon emissions by approximately 13% compared to our 2019 baseline and has the full support of our Board of Directors and senior management,” said Melissa Zona, Tronox Holding plc’s Senior Vice President, External Affairs and Chief Sustainability.

“We are delighted to see that large scale energy consumers like Tronox, are making use of the opportunity to convert to clean and cost effective energy. These types of projects are the fastest way to bring new generation capacity online and not only contribute to closing the electricity supply gap in our country, but also support the much needed transition to clean energy and modernization of our electricity grid,” said Chris Haw, Director and co-founder at the SOLA Group.

The execution of the agreements comes at a time when South Africa is faced with further load shedding and desperately in need of extra capacity to be added to its electricity network. The projects are expected to start construction in Q3 2022.

The concept of wheeling was first implemented in South Africa by SOLA Group at scale with Amazon Web Services in 2021 and allows projects in advanced stages of development to contract with private energy consumers thereby shortening permitting, procurement and construction timelines.

 

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