Sibanye-Stillwater has concluded its first power purchase agreement (PPA) and achieved financial close for an 89-megawatt wind energy project. The clean energy will be generated by the Castle Wind Farm, located near De Aar, South Africa, and will supply the miner’s South African operations via a wheeling agreement with Eskom.
Under the terms of the 15-year PPA, the Castle Wind Farm will be funded, built and operated by a consortium that consists of African Infrastructure Investment Managers, African Clean Energy Developments and Reatile Renewables.
“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,” said Sibanye-Stillwater CEO Neal Froneman.
“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 [South African] operations. Additionally, it will also contribute to addressing the electricity challenges in South Africa. We look forward to bringing the project into operation.”
Construction of the Castle Wind Farm is expected to commence this month and is scheduled for commercial operation in early 2025.