Mining giant Anglo American has signed a memorandum of understanding with EDF Renewables to work together towards developing a regional renewable energy ecosystem (RREE) in South Africa to deliver 3GW to 5GW over the next decade.
The ecosystem is expected to be designed to meet Anglo American’s operational electricity requirements in South Africa through the supply of 100% renewable electricity by 2030.
Anglo American said that in South Africa there is an abundance of renewable energy, such as wind and solar, but there is limited infrastructure to harness it.
“As Anglo American progresses towards its 2040 target of carbon neutral operations, this partnership with EDF Renewables is designed to abate the largest single source of its scope two emissions, being its current grid supply in South Africa,” the company said.
The RREE will draw on South Africa’s natural renewable energy potential to develop a network of on-site and off-site solar and wind farms.
Anglo American said it anticipates that a number of partners will provide equity financing for the RREE, in addition to the RREE attracting debt financing.
Anglo American chief executive Mark Cutifani (pictured) said: “We are targeting carbon neutrality across our operations by 2040 and we are making good progress.
“Today’s announcement is a further major step towards addressing our on-site energy requirements – the largest source of our operational emissions.
“Our partnership with EDF Renewables to address our scope two footprint in South Africa complements our FutureSmart Mining programme’s abatement of our scope one emissions through low and zero emission technologies, including our hydrogen haul truck system, and the development of South Africa’s Hydrogen Valley.
“Step by step, we are changing the very nature of mining and how our stakeholders experience our business – while supporting a Just Transition.”
EDF Renewables chief executive Bruno Bensasson said: “The EDF Group is delighted to take a step forward with Anglo American towards this ambitious partnership.
“We are committed to supporting industrial players by providing a low carbon competitive electricity that substitutes fossil energies and improves wider social and environmental issues.
“This project is also contributing to the country energy’s ambition to furthering the development of decarbonised energy. It is in line with EDF Group’s CAP 2030 strategy, which aims to double its net renewable installed energy capacity worldwide (hydropower included) from 28GW in 2015 to 60GW in 2030.”