Glencore to develop $116 million solar plant in South Africa

Timilehin Adejumobi -
Key Points
  • Glencore and Pele Green Energy are developing a $116 million, 100-megawatt solar plant in South Africa’s Free State to reduce carbon emissions.
  • The Sonvanger facility will power Glencore-Merafe Chrome Venture, supporting South Africa’s low-carbon goals with renewable energy.
  • Financing from Nedbank and Absa, along with Pele’s equity, advances the project as part of a broader renewable energy expansion.

Glencore Plc, led by South African executive Gary Nagle, has teamed up with Pele Green Energy to develop a $116 million, 100-megawatt solar power plant in South Africa's Free State province. The Sonvanger solar facility, set to power operations at the Glencore-Merafe Chrome Venture, is a pivotal step in reducing carbon emissions in the region's industrial sector.

The project, spearheaded through Glencore’s ferroalloys division in collaboration with Merafe Resources Ltd., aims to align with South Africa's low-carbon goals. “The Sonvanger solar plant supports South Africa’s low-carbon goals by reducing emissions and increasing renewable energy capacity,” said Gqi Raoleka, Managing Director of Pele Green Energy.

Strategic financing and climate goals

The project’s financing involves debt contributions from Nedbank Group Ltd. and Absa Group Ltd., while Pele Green Energy contributes equity. This marks Pele’s first private-sector venture as part of its broader goal to develop 5,000 megawatts of renewable energy capacity.

“This collaboration demonstrates the potential for tailored green energy solutions through partnerships with private players,” Raoleka added.

For Glencore, the initiative underscores its commitment to sustainability and operational efficiency. “This project reinforces our focus on renewable energy while reducing our carbon footprint,” said Japie Fullard, CEO of Glencore’s Ferroalloys division.

South Africa’s renewable energy momentum

Glencore, a mining and trading powerhouse with $117.1 billion in revenue for the first half of 2024, is advancing its global climate strategy under the leadership of Gary Nagle. Central to this strategy is the company’s dual focus, spinning off coal assets into a standalone entity while strengthening its steelmaking coal operations through acquisitions like Elk Valley Resources.

Aligned with these efforts, Glencore’s latest deal with Pele Green Energy underscores South Africa’s commitment to renewable energy expansion. Policy reforms enabling private firms to develop large-scale electricity projects have accelerated this shift, with the country projected to add 32 gigawatts of renewable capacity by 2029, according to consultancy GreenCape.

This deal not only cements Glencore’s position as a leader in the renewable energy transition but also highlights Pele Green Energy’s pivotal role in delivering industrial-scale green solutions. The Sonvanger project serves as a landmark initiative, symbolizing significant progress in decarbonization and renewable energy innovation in Africa’s most industrialized economy.