Cennergi Holdings Ltd., a wholly owned subsidiary of Exxaro Resources Limited, in partnership with G7 Renewable Energies has successfully achieved financial close on the 140MW Karreebosch Wind Farm (RF) (Pty) Ltd., marking a significant milestone in South Africa’s renewable energy landscape.
Karreebosch, owned 80% by Cennergi and 20% by G7, is located between the towns of Sutherland in the Northern Cape and Matjiesfontein in the Western Cape. The wind farm will supply clean electricity to Northam Platinum’s operations through a 20-year PPA, with the energy being wheeled via the national grid.
Leon Groenewald, Cennergi’s Managing Director said, “Reaching financial close with our partners G7 and Northam reaffirms Exxaro’s commitment to decarbonisation and diversification as set out in its Sustainable, Growth, and Impact strategy and underscores our commitment to delivering reliable and sustainable energy solutions. This project not only strengthens South Africa’s industrial energy security but also accelerates the country’s transition to renewable energy.”
The project is expected to issue notice to proceed in February 2025, and will be constructed over a period of 24 months. It represents a total investment of ZAR 4.7 billion which will be project financed by Nedbank, Absa, and Standard Bank with the financial structure set up to ensure long-term sustainability.
Beyond generating clean energy, Karreebosch Wind Farm will create approximately 1,030 construction jobs and 17 permanent operational roles, driving local employment and skills development. Furthermore, sustainable impact community initiatives will be undertaken in Sutherland, Laingsburg, and Matjiesfontein, focusing on education, early childhood development, skills training, and healthcare, fostering socio-economic growth and well-being and highlighting Cennergi’s commitment to sustainability, innovation, and community empowerment; all of which are key anchors to supporting South Africa’s transition to a low-carbon economy.
Karreebosch will add 112MW net capacity to Cennergi’s existing 297MW, bringing total managed capacity to 409MW. This supports Cennergi’s ambition to be a leading energy solutions business, with a targeted managed capacity of 1.6GW by 2030.
