What's Happening?
NOA Group has formalized a significant renewable energy supply agreement with Sibanye-Stillwater, a major player in South Africa's mining sector. The deal involves providing approximately 401 gigawatt-hours (GWh) of electricity annually through fixed
allocations, with an additional 100GWh per year available via a short-term flexible contract. This agreement is part of a broader strategy to deliver around 1.5 terawatt-hours (TWh) of renewable energy annually to the mining industry. The electricity will be supplied from NOA's diverse generation facilities, ensuring continuity and alignment with Sibanye-Stillwater's operational needs. The agreement also includes plans to integrate battery energy storage systems and additional renewable volumes to enhance cost efficiency and supply security.
Why It's Important?
This agreement marks a significant step towards reducing carbon emissions in the mining sector, aligning with Sibanye-Stillwater's goal of achieving carbon neutrality by 2040. By 2028, renewable energy is expected to constitute approximately 56% of Sibanye-Stillwater's total energy demand in South Africa, with costs projected to be 20-30% lower than current wholesale tariffs. The environmental impact is substantial, with the potential to avoid approximately 2.63 million tonnes of CO2 equivalent emissions annually. This move not only supports environmental sustainability but also positions Sibanye-Stillwater as a leader in renewable energy use within the mining industry, potentially influencing other companies to adopt similar strategies.
What's Next?
The agreement includes a proposed second phase to integrate battery energy storage systems and additional renewable volumes, which will further enhance cost efficiency and supply security. As Sibanye-Stillwater continues to expand its renewable energy portfolio, it is expected to further entrench its position as a leading renewable energy user in the South African mining sector. This could lead to increased pressure on other mining companies to adopt similar renewable energy strategies, potentially accelerating the shift towards sustainable energy practices across the industry.
