South Africa's state-owned power utility Eskom Holdings, has signed a memorandum of understanding (MoU) with coal producers Exxaro and Seriti Resources to lower carbon footprint by developing renewable energy projects.
The first phase will include new solar photovoltaic facilities on-mine and Eskom sites, including off-grid and wheeled solutions. The companies have committed to begin the projects as soon as possible, subject to regulatory approval.
Under the MoU, Seriti aims to cut CO2 emissions by 350,000 tonnes per year, more than half of its current emissions.
Exxaro believes it will cut emissions by 130,000 tonnes per year at its Matla coal mine, which would represent a saving of 70%.
André de Ruyter, chief executive officer, Eskom, said the company is exploring means to lower the cost of coal supplied to its power stations. This investment, de Ruyter said, will enable it to access low-cost photovoltaic power.
Mxolisi Mgojo, chief executive officer, Exxaro, described it as a "significant development" in South Africa's energy transition to a low carbon economy.
"The investment in decarbonising our mining operations is a systematic and responsible approach to the energy transition without introducing risk to the country's electricity generation," Mgojo said.
"The collaboration amongst Exxaro, Seriti and Eskom is exemplary of the possibilities achievable through co-operative and constructive relations between business and government in securing livelihoods and a future for South Africa."
