Seriti Resources has entered into an agreement to acquire a majority stake in Windlab Africa’s 3.5GW wind and solar-powered assets
The acquisition is being conducted through the company’s subsidiary Seriti Green, as it seeks to lower its carbon footprint and ensure long-term sustainability as a diversified energy producer.
Windlab Africa consists of 100% of Windlab South Africa and 75% of Windlab East Africa.
Mike Teke, CEO of Seriti, commented, “The acquisition is a timely and strategic addition to our existing and valuable portfolio of coal assets. Our commitment to the responsible and reliable production of coal for both domestic consumption and exports remains unwavering.”
As a coal producer, Seriti has indicated its commitment to playing an active role in helping manage the just transition to a low-carbon economy while balancing South Africa’s energy needs.
The introduction of renewable energy into Seriti’s existing portfolio of high-quality coal assets will provide long-term financial stability and diversification whilst embracing alternative energy sources and helping to secure the country’s power needs.
“This acquisition is a significant landmark on Seriti’s journey to becoming a diversified energy business and supports our ESG objectives and commitment to a just energy transition,” said Teke.
Seriti uses 750GWh of electricity in the process of mining the coal that is used to fuel power stations. In line with the commitments made in the MOU signed in October 2021 with Eskom and Exxaro, Seriti will start using renewable wind and solar energy in its own facilities through the signing of PPA’s in 2023.
Seriti is partnering with Standard Bank, RMB, Ntiso Investment Holdings and Peter Venn. Seriti has indicated its confidence in the strength of Windlab Africa’s experienced management team, led by Peter Venn, who will continue to develop and grow the business.
“Since commencing operation in Africa 14 years ago, Windlab’s aim has been to assist in the electrification of the region through the construction and operation of high-quality wind and solar renewable energy facilities. With African ownership and local capital, the business will now be able to accelerate the development of its significant pipeline to assist in alleviating the electricity shortages on the African continent,” said John Martin, Windlab CEO.
