Cennergi, a 50:50 joint venture between Exxaro and Tata Power, continues the project execution phase of both its 134 MW Amakhala Emoyeni wind farm (AEWF) project and the 95 MW Tsitsikamma Community Development Wind Farm (TCWF) project for which it achieved financial close under window two of South Africa’s department of energy’s rolling renewable energy independent power producer procurement (REIPPP) programme.
Construction on the AEWF project is due to begin in June 2014 and be completed in the second quarter of 2016, with a commercial operation date planned for the third quarter of 2016. The Cookhouse and Bedford community trusts own 5% of the equity of the project. Construction on the TCWF project located on the amaMfengu community land, in the Eastern Cape, which Cennergi is developing with Watt Energy and the Tsitsikamma Development Trust, is due to begin in September 2014 and be completed in the fourth quarter of 2015, with commercial operation date planned for the first quarter of 2016. Cennergi owns 75% of this project while Watt Energy and the trust own 25%.
In addition to its investment in Cennergi, Exxaro has agreements with Linc Energy related to the development of an underground coal gasification project in sub-Saharan Africa. These agreements became unconditional in November 2013 after Exxaro obtained an extension of the prospecting right of an envisaged development site from South Africa’s department of mineral resources. Exchange control approval was granted by the South African Reserve Bank for payment of licence fees and royalties for the intellectual property.