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November 26, 2024

Mulilo Reaches Financial Close on 260 MW Private PPAs for blue-chip, multinational corporations

Mulilo is pleased to announce the successful achievement of Financial Close on 260 MW of private power purchase agreements (PPAs) with two prominent corporate clients, marking a significant step forward in the company’s renewable energy portfolio.

In partnership with TotalEnergies, Mulilo was selected as the preferred bidder for a dual-project renewable energy initiative. The projects include:

  • De Aar 2 South – 140 MW wind farm (155 MWac installed) and
  • Paarde Valley PV2 – 120 MW solar PV plant (142.6 MWdc installed),

Both projects are being developed for Sasol Limited and Air Liquide Large Industries South Africa, and will be located in the resource-rich region of De Aar in the Northern Cape, South Africa. The design, financing, construction, operation, and maintenance of these projects will be jointly managed by Mulilo and TotalEnergies, with construction having commenced in early November 2024.

Strategic Site Selection and Long-Term Collaboration

The choice of De Aar as the project location was driven by the region's exceptional renewable energy potential. Mulilo has been in negotiations with local landowners since 2008 to secure the most suitable sites for these projects, reflecting the company’s long-term commitment to developing sustainable energy solutions in the region.

Mulilo CEO, Jan Fourie, commented: “This achievement strengthens our position as a leader in South Africa’s renewable energy sector and reaffirms our commitment to providing innovative energy solutions. Our partnership with TotalEnergies will help Sasol and Air Liquide Large Industries South Africa achieve their decarbonisation goals.”

The projects will be connected to the Kestrel Main Transmission Substation (MTS), a facility under development by Mulilo and TotalEnergies, which will be handed over to Eskom upon completion under a self-build agreement. This MTS is yet another example of how collaboration between private sector and the government can create positive momentum towards the development of critical infrastructure required for economic growth.

Financial Backing and Project Costs

The combined capital cost of the wind and solar projects is approximately ZAR 7.5 billion. The debt financing for the projects is provided by a consortium of Lenders including Standard Bank, ABSA, and Nedbank, underscoring strong support from local leading financial institutions.

“We would like to extend our sincere thanks to our equity partners, TotalEnergies and Reatile Group, for their collaboration and unwavering support in making this project a reality.” said Fourie.