Emesco Energy, a small player in the renewables market, announced that majority shareholding in its 5.4 megaWatt installation near Rosh Pinah Zinc Mine in the south, will be acquired by UK-based Appian Capital Advisory LLP with the target of increasing production to 16 mW, generated exclusively for the mine’s consumption.
In a statement announcing the take-over, Appian said the expanded solar plant will reduce Rosh Pinah’s electricity costs by 8% for the next 15 years while provideing 30% of the required energy for the mine’s expansion. The much bigger solar installation will also reduce the mine’s CO2 emissions by about 14,000 tonnes per year.
Rosh Pinah’s envisaged expansion will increase ore production from 700,000 tonnes to 1.3 million tonnes per year. The expansion project is now more than 60% complete.
The investment in the expanded solar plant will provide acceptable risk-adjusted returns for both Rosh Pinah Zinc Mine and for Appian.
Increasing the capacity of the solar plant to 16.3 mW will help to optimize the value of the investment. Emesco Energy will continue to operate the solar plant and develop the expansion. The project will benefit from cost synergies by leveraging Appian’s management and expertise from existing solar plants in Brazil, where 20 plants are being developed to support the company’s portfolio in the Minas Gerais region.
Appian Chief Executive, Michael Scherb, commented: “This is an important investment that will support Appian’s decarbonization ambitions and provide tangible cost benefits to Rosh Pinah Zinc, while offering attractive risk-adjusted returns to our investors. The project is another important step for Appian’s clean energy strategy following the development of our solar plant operations in Brazil.”
Emesco Managing Director, Rinus Strydom, said “This investment by Appian is a pivotal step not only in expanding the Rosh Pinah Solar Park renewable energy plant but also expanding Namibia’s energy generation in general.”
