Exxaro Resources has signed an agreement with Khopoli Investments, to acquire a 50% shareholding in independent power producer (IPP) Cennergi for R1,55 billion.
Engineering News has reported that this will give Exxaro 100% ownership of the IPP and is in line with Exxaro's vision of expanding its scope within the energy sector.
Cennergi owns the 134MW Amakkhala Emoyeni Wind Farm and the 95MW Tsitsikamma Community Wind Farm in the Eastern Cape.
“The collaboration between Exxaro and Tata Power over the past seven years to develop these projects to their current status has been commendable and outstanding success in South Africa’s implementation of its energy strategy.
"As a South African-based company, Exxaro is pleased with this opportunity to consolidate its interest in this renewable energy asset at a time in South Africa where we need energy security as we respond to increasing negative sentiment towards coal-based electricity generation,” said Exxaro CEO Mxolisi Mgojo.