Sibanye-Stillwater has inked a significant power purchase agreement (PPA) to procure 140 MW of wind power to further its decarbonization efforts.
The agreement spans 20 years and involves a consortium led by African Clean Energy Developments (ACED) and Energy Infrastructure Management Services (EIMS Africa), both of which are affiliated with African Infrastructure Investment Managers (AIIM). These entities are developing the Umsinde Emoyeni wind farm located on the border of the Northern Cape and Western Cape provinces.
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Secure transfer agreement
The wind power generated by the Umsinde Emoyeni project will be supplied to Sibanye-Stillwater through Eskom’s grid under a secure transfer agreement. The project has already reached financial close, arranged by Rand Merchant Bank (RMB), and is partially financed by AIIM’s IDEAS fund. Construction is underway, with commercial operations expected to commence in the fourth quarter of 2026.
Neal Froneman, CEO of Sibanye-Stillwater, emphasized the importance of this project in the company’s strategy to achieve carbon neutrality by 2040. This wind farm, with a capacity of 140 MW, is the fourth renewable energy project for which Sibanye-Stillwater has secured PPAs, bringing its total contracted renewable capacity to 407 MW.
The renewable projects are projected to cut the company’s emissions by 24%, equivalent to approximately 1.45 million tonnes of CO2 annually starting from 2027. Moreover, these initiatives are set to fulfill 70% of Sibanye-Stillwater’s electricity needs with renewable energy. The company aims to add 600 MW of clean energy in the near future to further support its sustainability goals.