Glencore Makes Deal with Pele Green for $116 Million Solar Plant

(Bloomberg) -- Glencore Plc’s South African ferroalloys division and its joint venture partner Merafe Resources Ltd. agreed a deal with Pele Green Energy to build a 2.1 billion rand ($116 million) utility-scale renewable energy plant.

Nedbank Group Ltd. and Absa Group Ltd. will provide debt, while Pele will contribute equity, Pele’s Managing Director Gqi Raoleka said in an interview. The 100-megawatt solar plant will be built at the Glencore-Merafe Chrome Venture’s operation in South Africa’s Free State province, he said.

“By reducing carbon emissions and increasing the share of renewable energy in the country’s energy mix, the Sonvanger solar plant adds to South Africa’s goal of a low-carbon future,” said Raoleka.

Policy reforms in South Africa now allow companies to construct utility-scale electricity plants, which has seen a jump in private development of renewable energy in Africa’s most-advanced economy. The country will have 32 gigawatts of installed renewable capacity within the next five years, according to an industry forecast by GreenCape.

The project is Pele’s first for a private client and is part of wider plans to develop 5,000 megawatts of capacity, according to Raoleka.

The development is in line with Glencore’s broader climate strategy and responsible sourcing of commodities, said Glencore’s Ferroalloys Chief Executive Officer Japie Fullard.