CENNERGI EMPOWERS ITS COMMUNITIES THROUGH IMPACTFUL DEVELOPMENT PROJECTS

Case Studies

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Committed to powering a clean world with a mixed portfolio of clean energy resources, Cennergi which is 100% wholly-owned by Exxaro aspires to be the leading diversified Independent Power Producer (IPP) in Southern Africa. Cennergi launched its operations in the South African renewable energy sector in 2012 and was awarded the bids for two wind farm projects (i.e. Tsitsikamma Community Wind Farm and Amakhala Emoyeni Wind Farm) in the Eastern Cape by participating in the Department of Energy’s Renewable Energy Independent Power Producers Procurement Programme (REIPPPP). Tsitsikamma Community Wind Farm (RF) Pty Ltd (TCWF) is a company formed to develop the Tsitsikamma wind farm project. The shareholders of TCWF include Cennergi (Pty) Ltd (75%), Watt Energy (16%) and the Tsitsikamma Development Trust (9%), the latter two being BEE partners to the project. Amakhala Emoyeni RE Project 01 (RF) Pty Ltd (AE01) is the second company formed to develop the Amakhala wind farm project. The shareholders of the AE01 include Cennergi (Pty) Ltd (95%), Cookhouse Community Trust (2.5%) and the Bedford Community Trust (2.5%), the latter two being BBBEE partners to the project. Both AE01 and TCWF started commercial operation in 2016 and sell electricity to Eskom under a Power Purchase Agreement (PPA) for a period of 20 years. As part of the REIPPPP bidding process, both AE01 and TCWF committed to spending 2.1% of their revenue on Socio-economic development programme (SED) and Enterprise Development programme (EnD) in communities located within 50km radius of the wind farms.
ExxaroOur Climate Change Response Strategy is integral to our Sustainable Growth and Impact strategy and objectives as we understand that these elements of our business and operating environment are deeply connected. Our strategic response is also guided by our purpose of powering better lives in Africa and beyond. We believe our greatest opportunity is to help steer South Africa towards a sustainable future through undiluted focus on low-carbon minerals and energy. Our existing coal business portfolio will continue to remain relevant and central to our transition journey. South African government has outlined the energy transition of the country in the Integrated Resource Plan 2030. As the largest supplier of coal to Eskom we have the national responsibility to ensure that we continue to provide quality coal to Eskom during the energy transition process contained in the IRP-2030. We also recognise the risk of stranded assets due to transitional and physical risks of climate change that may make it difficult for our business to operate. To mitigate this risk we have implemented the Early value strategy that will optimise our coal resources to focus on realising maximum value in the shortest period. Climate change does not only present our business with risks, we are leveraging the opportunities presented by the transition to low carbon world. We are committed to meeting our target of being carbon neutral by 2050 by consistently reducing our direct emissions. We also have a responsibility to partner with our suppliers and customers in an effort to reduce our indirect emissions. Our metrics and targets will ensure we have visibility in our progress towards achieving this target and making our business climate-proof.

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