Earlier this month, Sibanye-Stillwater signed what appears to be the largest corporate renewable power purchase agreement to date. They will be locking in around 401 GWh per year through fixed allocations from NOA Group. This long-term energy supply contract represents an important milestone for the mining company. It gets them to lower their carbon emissions and moves them further along in their stated goal of being carbon neutral by 2040.
Sibanye-Stillwater has already signed a 401GWh contract. Furthermore, they’ll receive 100GWh per year from a flexible, short-term, and savings-oriented deal. This flexibility will allow the company to adapt its energy procurement as market conditions change, ultimately leading to improved cost efficiency and supply security.
Sibanye-Stillwater’s CEO, Richard Stewart, said in a statement he was excited about the new partnership. He pitched this deal as a key part of the company’s overall environmental plan.
“We welcome this renewable energy supply agreement with NOA, which is another critical step towards reducing our carbon emissions and achieving our goal of carbon neutrality by 2040.” – Richard Stewart
The company’s plans go well beyond the current contracts. A second phase in proposed developments would ramp up this innovation by adding the integration of battery energy storage systems (BESS) with even more renewable energy volumes. This large-scale initiative serves not only to strengthen the reliability of the energy supply, but to further curtail dependence on fossil fuels.
Sibanye-Stillwater shoots for the stars! They want renewable energy to reach around 56% of their total energy demand in South Africa by 2028. Our projected costs of this renewable energy are already 20–30% lower than Eskom’s wholesale tariffs in 2023. The result is that the company is establishing itself as a front-runner in the evolving area of sustainable mining practice.
The environmental consequences of these accords are enormous. Sibanye-Stillwater expects that its creations will prevent about 2.63 million tonnes of CO₂ equal emissions each year by 2040. This reduction is critical not only for the company but for the mining industry at large.
The import deal Karel Cornelissen, who commented on the broader implications of the deal here, said that
“This transaction reinforces the accelerating shift toward large-scale wheeled renewable energy in mining.”
As Sibanye-Stillwater advances in its renewable energy initiatives, it sets a precedent for other companies in the sector, showcasing a commitment to sustainability and effective resource management. It’s a smart, intelligent business move to partner with a firm like NOA Group. It shows just how important environmental responsibility has now become to the mining industry.