Richards Bay Minerals (RBM) has signed a third Power Purchase Agreement (PPA), this time with Red Rocket South Africa (Pty) Ltd ahead of the construction of Phase 1 of the Overberg Wind Farm in the Western Cape.
RBM said in a statement on Thursday that Construction of the Overberg Wind Farm near Swellendam was expected to begin in the first half of 2025, with the first energy production targeted for December 2026.
The project will be developed and commissioned in two phases. RBM has been allocated 230MW of the project’s total 380MW export capacity, which is expected to significantly reduce its annual greenhouse gas emissions by around 30% (0.7 Mt of CO₂e).
This latest agreement brought RBM’s renewable energy PPAs to approximately 500MW of energy, the company said.
In June 2024, RBM announced the signing of a PPA for the Khangela Emoyeni Wind Farm near Murraysburg in the Western Cape and Northern Cape provinces. The 140MW project is expected to deliver around 460GWh of renewable energy per annum to the company through a wheeling arrangement with Eskom. Construction of the project began in July 2024 and is on track.
RBM announced the signing of the Bolobedu Solar PV project, located about 120km east of Polokwane in Limpopo, in October 2022. The 130MW Bolobedu Solar PV project has the capacity to generate around 300GWh of energy per annum, and construction is under way.
Werner Duvenhage, Managing Director of RBM and Rio Tinto Iron and Titanium African Operations, said the deal was in line with the company’s plan to reduce reliance on fossil fuels.
“This announcement comes shortly after the United Nations International Day of Clean Energy on 26 January 2025, which reminds us of the need to transition from our reliance on fossil fuels for the betterment of our planet and people.
“At RBM, we are taking real action to displace electricity generated from coal with solutions like solar PV, wind, and other renewable technologies.”
He said the Overberg Wind Farm project represented the biggest project in RBM renewable energy procurement and was a key step towards achieving its commitment to reduce emissions by 50% by 2030 and achieve net zero by 2050.
Red Rocket South Africa CEO, Matteo Brambilla, said the deal was a significant milestone in the company’s ongoing partnership with RBM.
“This project will deliver 230MW of clean energy to the South African grid, driving positive environmental impact for RBM while contributing to South Africa's energy transition. At Red Rocket, we are proud to support RBM's commitment to a more sustainable future and to be at the forefront of delivering innovative, impactful renewable energy solutions," said Brambilla.
RBM consumes around 1.8 TWh (Terawatt-hours) per annum, with electricity consumption comprising around 1.6 Mt of CO₂e or 80% of annual GHG emissions.
