Sibanye-Stillwater takes major step as it signs first utility-scale renewable energy project

Sibanye-Stillwater this week announced that it had concluded its first power purchase agreement and achieved financial close for an 89-megawatt (MW) wind energy project.

This clean energy will be generated by the Castle Wind Farm, the largest private wind farm constructed in South Africa to date, located near the town of De Aar in the Northern Cape province of South Africa. This will supply the mining firms South African operations via a wheeling agreement with Eskom.

Construction of the Castle Wind Farm was expected to commence in June 2023 and was scheduled for commercial operation in early 2025, Sibanye-Stillwater said in a statement.

The project consortium consists of African Infrastructure Investment Managers (AIIM), through its renewable energy project development and delivery platform, African Clean Energy Developments (ACED) and Reatile Renewables.

Under the terms of the 15-year PPA, the Castle Wind Farm would be funded, built, and operated by the consortium.

Neal Froneman, the CEO of Sibanye-Stillwater said, “This marks our first major step in delivering over 550 MW of our renewable project portfolio and is a significant milestone in our journey to carbon neutrality by 2040.

“The project will not only play a pivotal role in reducing carbon emissions and mitigating climate change but also results in cost savings on electricity and provides energy security benefits for Sibanye-Stillwater’s SA operations. Additionally, it will also contribute to addressing the electricity challenges in South Africa. We look forward to bringing the project into operation,” he said.

BUSINESS REPORT