AMSA renewable-energy project, South Africa – update

10th May 2024 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

AMSA renewable-energy project, South Africa – update

Name of the Project
AMSA renewable-energy project.

Location
Vanderbijlpark, in Gauteng, South Africa.

Project Owner/s
The plant will be built and operated by a special purpose vehicle (SPV), owned by ArcelorMittal South Africa (AMSA) and the ArcelorMittal Group.

Project Description
AMSA plans to build a 200 MW solar photovoltaic plant.

The SPV will contract the Vanderbijlpark mill and will supply about 43% of the plant’s electricity demand at a tariff that will be “substantially cheaper” than the Eskom tariff.

The associated carbon emissions reduction attributed to the use of the solar plant will amount to about 540 000 t/y.

The plant is the first major step towards developing a total of 250 MW of renewable generation capacity for AMSA’s operations. It will not feature any electricity storage solutions, as it is expected that the plant will consistently fully use whatever electricity is generated during the day.

Potential Job Creation
Not stated.

Capital Expenditure
The project is expected to cost about R4-billion and will be funded by 20% equity and 80% debt.

Planned Start/End Date
Construction of the plant is expected to start in early 2025 at the latest, subject to State-owned power utility Eskom’s approval process.

Latest Developments
AMSA is planning to start construction on the project shortly.

The project has been put out to tender, with numerous tenders being adjudicated. 

“We have all the permitting required. We have our environmental approval. We have the local authority approvals. We have everything except the Eskom connection,” AMSA CTO Werner Venter explained on April 30, 2024.

He added that there were plans to enter into power purchase agreements to acquire clean energy from other sites, and generate additional electricity from gas and steam generated on site.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
AMSA, tel +27 16 889 9111.