Seriti launches R25 billion renewable energy project in Mpumalanga

Black-owned coal mining group Seriti Resources has announced a massive 900MW wind farm in Mpumalanga, making it the largest of its kind in the country.

The R4.8 billion first phase of construction of the 155 MW Ummbila Emoyeni wind energy facility is currently underway. Seriti Green aims to invest an estimated R25 billion in the overall renewable energy mega project.

According to Seriti, the project will ultimately supply 75% of the power needs of the group’s coal mines, reducing its carbon footprint and accelerating its green energy transition.

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The project is expected to be fully commissioned by 2027, by which time it will provide electricity to about 500 000 households around the area, as well as the Seriti coal mines. Its first phase, comprising 155MW, is currently underway and will be completed by mid-July 2026.

The project is the first since Seriti Resources, one of South Africa’s largest coal miners, announced its acquisition of Windlab and the subsequent launch of Seriti Green in 2023.

Seriti Green partnered with Standard Bank and RMB for the financing and development of this initial 155MW facility, sufficient to power about 165 000 households a year.

The overall Ummbila Emoyeni project, located between Bethal and Morgenzon in Mpumalanga, will combine 750MW of wind and 150MW solar generation.

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The project has been designated as a Strategic Integrated Project by the Department of Public Works and Infrastructure.

Moving to renewable energy

It forms part of Seriti’s stated intention of moving into renewable energies.

The acquisition of Windlab Africa in 2022 gave it a strong foothold in the renewable energy space in both SA and East Africa.

Seriti is the largest supplier of coal to Eskom, and uses 750GWh of electricity to mine coal that ultimately ends up powering much of the Eskom network.

About half of the renewable energy infrastructure will be owned and maintained by Seriti Green, while the other half will form part of Eskom’s national grid, said Mike Teke, chair of Seriti Green and group CEO of Seriti Resources on Wednesday.

 “We are pleased and honoured to contribute to the country’s energy security through this project. It is a significant milestone for the group and Seriti Green in particular, while representing the fulfilment of a commitment we made at the President’s Investment Conference.

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“The Seriti Group and ordinary citizens will therefore benefit from this project,” added Teke.

Mike Teke CEO of Seriti Resources, right, seen with Seriti Green CEO Peter Venn at the announcement on Wednesday. Image: Supplied

Several South African mining groups have announced renewable energy projects in recent years, but few match the scale of Seriti Green’s latest project announcement.

The payback period for renewable energy projects has become more attractive as infrastructure costs have reduced while Eskom electricity costs have increased way above inflation rates.

Mine inflation has been running at double digits for years, forcing management to seek ways to lower costs while transitioning to green energy.

Miners going green

In March, JSE-listed Gold Fields announced it would build 42MW of wind and 35MW of solar capacity at its St Ives mine in Western Australia as part of a long-term project aimed at supplying 70% of its power needs through green energy by 2050. It also installed 10MW of solar and 3MW of wind at its South Deep mine in SA.

Sibanye-Stillwater announced renewable energy projects worth more than R6 billion to supply a total of 267MW aimed at supplying 45% of its long-term renewable energy requirements.

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In February, Anglo American announced that its Envusa Energy joint venture with EDF Renewables would supply 460MW to its Rustenburg Platinum operations through solar and wind. It teamed up with EDF Renewables to launch a 600MW pipeline of projects that would form part of an ecosystem generating 3-5GW of renewable energy by 2030.

Other renewable energy projects have been announced by mining groups such as Impala Platinum and Exxaro.

Seriti Green CEO Peter Venn said SA’s alternative energy space is ripe for diversification, presenting local companies with an opportunity to be part of the Just Energy Transition.

“We can no longer ignore the effects of climate change and we must not delay in ensuring we reduce carbon emissions, create jobs and improve the lives of citizens who have borne the brunt of energy constraints. Seriti Green is committed to this endeavour.”

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Last week, at Standard Bank Group’s ‘Unlocking Africa’s Growth’ business and commercial banking conference in Cape Town, Venn echoed Eskom CEO Dan Marokane’s warning that SA’s Just Energy Transition needed to be ‘just’, especially in the country’s energy heartland, Mpumalanga.

“It’s not renewables or coal, it’s renewables and coal,” Venn declared.

Meanwhile, Mpumalanga community representative June Davids, said in a statement on Wednesday that Seriti Coal has been part of the community for many years, and the renewable energy project will bring more jobs, economic opportunities and development to the area.

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Once constructed, the wind farm will supply more than 75% of the energy needs of Seriti’s existing coal operations while mitigating its Scope 1 and 2 greenhouse gas emissions and bringing the company a step closer to carbon neutrality.

Scope 1 refers to emissions from processes at the mine site, and Scope 2 to the indirect emissions such as the purchase of electricity from Eskom.

This article was republished from Moneyweb. Read the original here