JSE-listed technology solutions provider EOH Industrial Technologies on Tuesday entered into a strategic joint venture (JV) with German energy group Steag Energy Services broaden EOH’s services offering in South Africa.

The JV will cover all aspects of power project developments, from inception through to feasibility study, project development, construction, operation and maintenance and the optimisation of plants that are already in operation.

Speaking at a signing ceremony on the sidelines of the Africa Energy Indaba, in Johannesburg, EOH Industrial Technologies CEO Zunaid Mayet said the two companies decided to formalise their years-long relationship.

“Together, we can add significant value to the utility market,” said Mayet, noting that the energy sector was becoming more complex and dynamic and that the JV company would be active in the gas, coal and renewable-energy sectors.

EOH energy cluster managing executive Jayesh Ranchod added that the change in South Africa’s electricity generation mix had alerted EOH to the need to cover all its bases in terms of having the full set of skills, technology and know-how to deal with this mix. “This was part of the rationale of forming this JV, to address that gap in our market, while building local skills and competence,” he said.

Steag CEO Dr Ralf Schiele described the JV as an important milestone for the German company.

“We [are] convinced that it [is] a partnership between equals . . . and can make a great difference to the power generation sector in South Africa and to the region at a later stage.”

While the JV would initially focus on South Africa, Mayet noted that the relationship was not confined to the country’s borders.

Schiele added that Steag, which already owns and operates power plants generating 12 GW of electricity using multiple sources, is “very active” in Botswana, where it operates the 600 MW power plant in Morupule. “There is a commitment from our company to the entire region.”