The Lephalale solar project, with a capacity of 68 MW, has reached financial close and will provide renewable energy to the Grootegeluk coal mine in Limpopo. Cennergi, a subsidiary of Exxaro Resources, the owner and operator of Grootegeluk, announced this achievement on Wednesday. Under a power purchase agreement, Cennergi will supply renewable energy to the flagship mine for a period of 25 years.

The project is expected to bring energy cost savings, enhance energy security, and contribute to decarbonization efforts at Exxaro. It will also support sustainable development and provide socio-economic benefits to local communities. This initiative aligns with Exxaro's commitment to business sustainability and its support for the transition to green energy.

The funding for the project will come from limited recourse project finance debt provided by lenders, as well as equity investment from Cennergi as the sole shareholder. An engineering, procurement, and construction contract will be awarded for the 19-month construction phase, and an operations and maintenance contract will also be granted.

Exxaro CEO Dr. Nombasa Tsengwa expressed the significance of the project, stating that it represents a major milestone in South Africa's renewable energy landscape. He emphasized the potential of clean energy in driving economic growth and reducing carbon emissions in the country.

The Lephalale solar project, located on 236 hectares of Exxaro land near Eskom's Matimba coal-fired power station and the town of Marapong, will serve as a direct source of clean energy. Exxaro Resources MD Energy, Leon Groenewald, expressed excitement about the solar project, considering it a significant renewable energy partnership.