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Anglo American, a mining company, has partnered with EDF Renewables to form a new company, Envusa Energy, to develop a regional renewable energy ecosystem (RREE) in South Africa. 

The two companies signed a Memorandum of Understanding (MoU) in March 2022 to explore the development of the ecosystem which will be designed to meet Anglo American’s operational power requirements in South Africa. The RREE is expected to support South Africa's switch from coal-based power systems to renewables and support the resilience of local electricity supply systems.

Under the agreement, Envusa Energy has planned a pipeline of 600 megawatts of wind and solar projects in South Africa in the first phase of the development of the ecosystem. The initial 600 megawatts project pipeline will be part of a series of projects expected to generate a total capacity of 3-5 gigawatts of renewable energy by 2030. The first phase of Envusa Energy's renewable energy projects is expected to begin construction by 2023.

Anglo American project sites will receive renewable energy blends generated on-site by Envusa Energy, as well as renewable energy transmitted through the national grid.

Today we announced our #renewableenergy partner, EDF Renewables South Africa, to secure the inclusive and sustainable growth of South Africa. Learn: https://t.co/vmcKAiNJzb pic.twitter.com/0pYDBbqmHg

— Anglo American ZA (@AngloAmericanZA) March 18, 2022

“I’m delighted to confirm our ground-breaking partnership with EDF Renewables to form Envusa Energy. This is a significant milestone in Anglo American’s global decarbonisation journey and another step forwards for South Africa’s clean energy future. We are making great strides towards our 2040 target of carbon-neutral operations while contributing to South Africa’s just energy transition through our responsible approach, said Nolitha Fakude, Chair of Anglo-American’s Management Board in South Africa, who sees the project’s opportunities.

“We believe that the energy transition presents a fresh opportunity for South Africa and the rest of the region to build a clean and inclusive energy ecosystem that can create significant new economic opportunities. I am very encouraged by our progress – affirming Anglo-American’s commitment to South Africa’s next phase of development towards a low-carbon future,” Fakude added.

He continued, “We are very pleased to be part of this very innovative venture and look forward to bringing our global expertise in renewable energy infrastructure development, design, and delivery to Envusa Energy."

"This partnership with Anglo American confirms our long-term perspectives in the country: this 600-megawatt (MW) first tranche of projects will be added to the almost 1 gigawatt (GW) that EDF Renewables will be building or operating in the country by 2023 – including 420 MW of wind projects in REIPPP Bid Window 5, whose PPAs were signed with Eskom and the DMRE on 22 September 2022. Together, these projects further EDF Group’s CAP 2030 strategy, which aims to double our net renewable installed energy capacity worldwide (hydropower included) from 28 GW in 2015 to 60 GW by 2030” said Mr. Fakude.

The RREE will contribute to clean energy sources required for the production of green hydrogen for Anglo-American’s nuGen™ Zero Emission Haulage Solution (ZEHS). The ZEHS comprises a fleet of hydrogen-powered ultra-class mine haul trucks. These will reduce diesel emissions on-site and help support a carbon-neutral future. 

It will also help in the development of South Africa’s Hydrogen Valley. A Black Economic Empowerment (BEE) partner for Envusa Energy will be identified by the fourth quarter of 2022. Various community partnership models are also being considered allowing host communities to share benefits created by the development of RREE along its value chain. 

The RREE will help these communities to create a shared prosperity model of development to help in the economic development of South Africa.

Top Photo: Renewable energy and sustainable development in South Africa - concept rendering (Alexlmx | Deraemstime)