Renewable energy company Solana Energy and diversified metals producer South32 have identified key small and medium-sized enterprise (SME) businesses in the region around South32's Hillside Aluminium Smelter, in Richards Bay, and are collaborating with the SMEs on the rollout of 2.5 MW of generation projects that are aimed at suppliers of goods and services to South32 and other businesses in the area.
The objective is to ensure the smooth running of SME operations through stable energy supply and reduced energy costs.
This project is funded from enterprise and supplier development (ESD) funds allocated by South32 for SME development in the region using credit and structuring expertise from financial services firm Absa. The funds are used for multiple primary generation projects as well as the establishment of a training academy at the South32 ESD centre.
“From the funding model right through to the skills development and new venture creation elements, we believe that this project could serve as a blueprint for renewable energy partnerships across South Africa,” says Solana Energy business development head Ahmed Motara.
This sentiment is echoed by South32 Hillside Aluminium Operations VP Calvin Mkhabela, who adds: “The Solana project not only allows us to support sustainable energy for our key stakeholders, it also allows us as a responsible corporate citizen to play our part in contributing to South Africa’s economic recovery”.
Further, Absa supports the growth and sustainability of this social enterprise with industry expertise, financing solution, training and other banking services.
“This project is aligned to Absa’s commitment to playing a formative role in society through enterprise development in corporate value chains. We look forward to expanding on this innovative solution with South32 and Solana Energy,” says Absa Corporate and Investment Banking enterprise and supply chain development COO Dumisani Mkhonza.