Juwi wins South African solar contracts worth 250MW
German renewable energy company, juwi Renewable Energies, has won three contracts with a combined value of $200mn (ZAR3bn) for solar energy in South Africa.
The contracts include EPC (engineering, procurement and construction) and O&M (operation and maintenance), and have been concluded with African Infrastructure Investment Managers (AIIM) which is Africa’s biggest infrastructure private equity fund manager and part of Old Mutual Alternative Investments.
The three solar projects are the 86MW Waterloo Solar Park and the 78MW Bokamoso Solar Park, both located in North West Province, along with the 86MW Droogfontein 2 Solar Park, located in Northern Cape. Altogether, the parks are set to deliver 250MW of solar PV energy to the South African power grid.
AIIM’s IDEAS Managed Fund is to be the majority shareholder with a 50.01% stake in the projects. The fund is South Africa’s biggest for domestic infrastructure equity, with $890,000 (ZAR13.2mn) assets under management.
The projects were signed by juwi as part of the REIPPPP Programme, and debt funding was provided by ABSA and Nedbank.
Juwi’s Managing Director, Greg Austin, said: “We are delighted to have closed the EPC and O&M contracts and the associated agreements with AIIM, together with their equity and debt partners. For juwi, this represents a major milestone as the addition of this 250MW triples our existing portfolio of solar PV projects constructed and operated in South Africa.”
Juwi has also outlined some key economic benefits of the new solar facility investments, such as 100% South African ownership, 50% direct black ownership with an additional 15% indirect black ownership, and 40% black participation in EPC contracts.
Austin commented: “The RE sector brings real socio-economic benefits to South Africa, offering significant job creation, and infrastructural development to facilitate economic growth and attract investment to the region.”
Trafigura and Yara International explore clean ammonia usage
Reducing shipping emissions is a vital component of the fight against global climate change, yet Greenhouse Gas emissions from the global maritime sector are increasing - and at odds with the IMO's strategy to cut absolute emissions by at least 50% by 2050.
How more than 70,000 ships can decrease their reliance on carbon-based sources is one of transport's most pressing decarbonisation challenges.
Yara and Trafigura intend to collaborate on initiatives that will establish themselves in the clean ammonia value chain. Under the MoU announced today, Trafigura and Yara intend to work together in the following areas:
- The supply of clean ammonia by Yara to Trafigura Group companies
- Exploration of joint R&D initiatives for clean ammonia application as a marine fuel
- Development of new clean ammonia assets including marine fuel infrastructure and market opportunities
Magnus Krogh Ankarstrand, President of Yara Clean Ammonia, said the agreement is a good example of cross-industry collaboration to develop and promote zero-emission fuel in the form of clean ammonia for the shipping industry. "Building clean ammonia value chains is critical to facilitate the transition to zero emission fuels by enabling the hydrogen economy – not least within trade and distribution where both Yara and Trafigura have leading capabilities. Demand and supply of clean ammonia need to be developed in tandem," he said.
There is a growing consensus that hydrogen-based fuels will ultimately be the shipping fuels of the future, but clear and comprehensive regulation is essential, according to Jose Maria Larocca, Executive Director and Co-Head of Oil Trading for Trafigura.
Ammonia has a number of properties that require "further investigation," according to Wartsila. "It ignites and burns poorly compared to other fuels and is toxic and corrosive, making safe handling and storage important. Burning ammonia could also lead to higher NOx emissions unless controlled either by aftertreatment or by optimising the combustion process," it notes.
Trafigura has co-sponsored the R&D of MAN Energy Solutions’ ammonia-fuelled engine for maritime vessels, has performed in-depth studies of transport fuels with reduced greenhouse gas emissions, and has published a white paper on the need for a global carbon levy for shipping fuels to be introduced by International Maritime Organization.
Oslo-based Yara produces roughly 8.5 million tonnes of ammonia annually and employs a fleet of 11 ammonia carriers, including 5 fully owned ships, and owns 18 marine ammonia terminals with 580 kt of storage capacity – enabling it to produce and deliver ammonia across the globe.
It recently established a new clean ammonia unit to capture growth opportunities in emission-free fuel for shipping and power, carbon-free fertilizer and ammonia for industrial applications.