South African energy firm, Seriti Resources is reportedly planning to invest $730 million towards establishing a 450-megawatt wind farm in Mpumalanga after the acquisition of Windlab Africa.
This move is in line with the company’s plans to reduce its carbon footprint and venture into renewable energy. Seriti, which is a privately-owned major supplier of coal to the country’s state power utility Eskom, has finalized the deal to purchase a 51% stake in the wind and solar energy assets of Windlab Africa for $55 million via its renewable energy subsidiary, Seriti Green.
Windlab Africa, the African division of the Australian renewable energy firm Windlab Pty Ltd, currently has 3.5 GW of renewable energy projects under it in various development stages across South Africa as well as East Africa.
According to Peter Venn, Managing Director of Windlab Africa, the construction of the 450MW wind farm will require $732.25 million (R12 billion). .
Venn, who will be heading Seriti Green, claimed that the team will focus on accomplishing 450 megawatts in Mpumalanga by the first or second quarter of 2023, as soon as the acquisition deal of Windlab will be closed.
Coal mining firms, which produce a majority of carbon emissions, are now urged to phase out fossil fuel production with the increasing push towards clean energy across the globe.
Mike Teke, CEO of Seriti, stated that the firm needed to move towards a future of low carbon by diverting capital investing from coal to green energy.
Mike also added that not only is it the right thing to do, but it also makes sense in terms of business and society.
For the unversed, the Mpumalanga province is home to many coal mines and thermal power plants in South Africa and plays an important role in replacing fossil fuels with renewable energy projects to help sustain local businesses and communities.