UK-headquartered Petra Diamonds Limited says its latest power purchase agreements (PPA) for renewable energy will enable the diamond miner to reduce its scope I and 2 GHG emissions by 35% to 40% by 2030, against the 2019 baseline, well ahead of time.
The company has entered long-term PPAs for wheeled renewable energy for its Cullinan and Finsch Diamond Mines in South Africa with Etana Energy. The latter is the energy trading platform of Africa-focused energy group Chariot Limited and H1 Holdings, for South African businesses.
Under the contracts signed, energy trader Etana will supply each operation of Petra between 36% and 72% of the expected load requirement from FY 2026 onwards.
Petra also sees these contracts bringing down its electricity bills and ensuring predictable energy costs over the term of the PPAs.
While the exact source of the power generation wasn't revealed, Etana's portfolio comprises ready-to-build (RTB) and grid-secured wind and solar projects that are expected to come online between 2025 and 2026. Both these sources together will ensure energy supply round the clock.
"This will result in a considerable reduction of our GHG emissions, well ahead of our 2030 target, and will further strengthen the sustainability credentials of our diamonds. We consider this to be an important facet, alongside the traceability and provenance of our diamonds, in differentiating Petra's product offering," said Petra Diamonds Chief Executive Richard Duffy. "Furthermore, as part of our ongoing efforts to reduce our cost base, the tariff secured is expected to lead to sustained reduction in our energy supply costs which will further reduce fixed costs at our South African operations."
Petra targets to generate zero emissions on a net basis for scope 1 and 2 by 2050 and aims to achieve the ambition by 2040.
Etana will ensure power supply from the existing electrical grid using the wheeling scheme of national utility Eskom.
The wheeling arrangement in South Africa enables green energy projects located anywhere in the country to sell power generated to customers in other locations using Eskom's grid. It is particularly enabling the mining industry along with those operating in remote locations to get access to clean and reliable energy supply like data centers (see Corporate Solar PPA For 87 MW In South Africa).