Absa says it acted as joint mandated lead arranger and lender for South Africa\u2019s first utility scale renewable energy captive power project, comprising 200MW\u2019s of solar power, which will be built in the North-West province in South Africa, at an estimated cost of approximately R4.1 billion.<\/p>\n
\u201cAbsa is proud to be associated with this project, where financing is in line with the bank\u2019s own sustainable finance goals which include assisting clients on their journeys to transition from fossil fuels to renewable energy sources, thereby significantly reducing greenhouse gas emissions,\u201d said Shaun Moodley, principal within Absa\u2019s Resource & Project Finance team.<\/p>\n
Tronox SA is a heavy mineral sands producer and operates in KwaZulu-Natal and the Western Cape. It mines sand deposits and processes the heavy mineral sands-bearing concentrates at its mineral separation facilities. Its products include titanium slag, a feedstock in the manufacturing of titanium dioxide pigment mainly used in the paint and plastic industries and zircon, which is mainly used in the ceramics industry.<\/p>\n
The project will supply electricity, through wheeling arrangements with Eskom, to five of Tronox SA\u2019s facilities in the Western Cape and KwaZulu-Natal. Tronox SA\u2019s operations are energy intensive and, based on a competitive energy tariff secured through the structure, will contribute to significant savings in Tronox\u2019 energy costs.<\/p>\n
The transaction Absa said, adds to the bank’s renewable energy portfolio, now measuring over 3.1GW\u2019s, including Absa\u2019s participation in Eskom\u2019s renewable energy program.<\/p>\n