South African coal producer Seriti Resources has plans to invest about $730m in constructing a 450MW wind farm in Mpumalanga, South Africa, reported Reuters.
Seriti Resources, through its renewable energy subsidiary Seriti Green, has signed a deal to purchase 51% controlling stake in Windlab Africa’s wind and solar-powered assets for $55m.
RMB and Standard Bank each have 14.5% interest in Windlab Africa, while two individual partners, Peter Venn hold and Ntiso Investment Holdings hold 15% and 5% stakes, respectively.
Australia’s Windlab owns Windlab Africa and has 3.5GW of renewable energy projects at various stages of development in South Africa and east Africa.
Windlab Africa managing director Peter Venn will head Seriti Green.
Following the acquisition, Seriti’s plans for windfarm will kickstart a foray into clean energy.
The 450MW wind farm is expected to be completed in the first quarter or second quarter of 2023, immediately after closure of this deal.
Most of South Africa’s coal mines and thermal power plants are located in Mpumalanga province.
The province forms key to plans to swap fossil fuel with renewable energy projects, reported the news agency.
Amid a global push for clean sources of energy, coal miners are under pressure to curb fossil fuel production.
Seriti chief executive Mike Teke said: “We need to be moving towards a lower carbon future through investing capital from coal into green energy. It is not only the right thing to do, but it makes business and societal sense.”
The company generates almost 50 million tonnes of thermal coal, most of which is utilised by power stations of South Africa.
Image: The 450MW wind farm is expected to be completed in the first quarter or second quarter of 2023. Credit: Ed White from Pixabay .