Anglo American's renewable energy venture, Envusa Energy, has successfully completed project financing for three wind and solar projects in South Africa. These projects, known as the Koruson 2 cluster, will have a total capacity of 520MW and are a significant step in addressing the company's Scope 2 emissions. The projects are expected to enhance energy reliability and grid resilience in South Africa, playing a critical role in unlocking economic development and growth prospects in the region.
The Umsobomvu Wind project, Hartebeesthoek Wind project, and Mooi Plaats Solar project are part of Envusa Energy's mature pipeline of wind and solar projects in South Africa. These projects are anticipated to supply renewable energy to Anglo American's sites in the Southern African region and other sites transmitted via the national grid. The projects benefit from exceptional yield resources and a robust Eskom grid connection, promising significant electricity cost savings compared to existing tariffs.
Anglo American's businesses in South Africa have committed to 20-year offtake agreements with Envusa Energy, with the projects expected to reach commercial operation during 2026. This phase of contracts is projected to abate approximately 2.2 million tonnes per year of carbon dioxide. The financial closure for these projects marks a crucial milestone in support of Anglo American's global decarbonization journey and South Africa's pursuit of a resilient and clean energy future.
Envusa Energy is also exploring black economic empowerment (BEE) and community partnership models to enable businesses and host communities to share in the benefits created by the development of the renewable energy ecosystem. This includes the incorporation of a 20% equity investment by Pele Green Energy (Pty) Ltd into each of the three project companies, alongside the establishment of a community trust to manage the financial interests of local communities in the Koruson 2 assets. The company is also in the process of implementing the incorporation of a BEE partner at the business level to further demonstrate its commitment to supporting black economic empowerment.
The completion of the project financing for these renewable energy projects not only aligns with Anglo American's global decarbonization journey but also supports South Africa's transition to clean energy. Envusa Energy's ambition to roll out 3 to 5 GW of wind, solar, and storage projects by 2030 is in line with EDF Group's CAP 2030 strategy, which aims to double its net renewable installed energy capacity globally by 2030.