It is with great pleasure that Sibanye-Stillwater announces the completion of its first PPA and the achievement of financial close for an 89 MW wind energy project.
It is with great pleasure that Sibanye-Stillwater announces the completion of its first power purchase agreement (PPA) and the achievement of financial close for an 89 MW wind energy project.
A wheeling agreement with Eskom will be used to supply the SA operations with this clean energy, which will be produced by the Castle Wind Farm in South Africa (SANorthern )’s Cape province close to the town of De Aar.
“This wind energy project marks our first significant step in delivering over 550 MW of our renewable project portfolio and is a significant milestone in our journey to carbon neutrality by 2040,” said Neal Froneman, CEO of Sibanye-Stillwater.
The size of this private wind farm will be the biggest ever built in South Africa. The castle wind farm is expected to start construction in June 2023, and it’s expected to go into operation in early 2025.
African Infrastructure Investment Managers (AIIM), through its platform for developing and delivering the renewable energy projects, African Clean Energy Developments (ACED), and the Reatile Renewables make up the project consortium.
The project was funded by AIIM, a division of Old Mutual Alternative Investments (OMAI), through its IDEAS Fund, one of the biggest domestic infrastructure equity funds in the South Africa.
The project’s sole mandated lead arranger is FirstRand Bank Limited’s Rand Merchant Bank (RMB), a division of the bank. The consortium will provide funding for, build, and manage the Castle Wind Farm in accordance with the power purchase agreement’s 15-year terms.
“The project will not only be crucial for lowering carbon emissions and preventing climate change, but it will also save money on electricity and benefit Sibanye-SA Stillwater’s operations in terms of energy security. Additionally, it will help the South Africa address its problems with electricity. Neal Froneman expressed excitement about starting the project.