Scatec commissions among world's largest solar & storage projects in South Africa; AfDB approves $1 billion for South Africa's JET; Standard Chartered & ICIEC to back off-grid solar streetlight project in Senegal; ITOCHU & Hive to explore green ammonia production in South Africa.
Scatec's largest investment: Norway's Scatec has commissioned 540 MW solar and 225 MW/1,140 MWh battery storage Kenhardt project in South Africa, calling it one of the world's 1st and largest hybrid solar and battery storage facilities. Made up of 3 plants, this capacity is now generating and supplying clean energy to the national grid in the Northern Cape province. It will deliver 150 MW of dispatchable power from 5:00 am to 9:30 pm through the year, under a 20-year power purchase agreement (PPA) with the country's sole utility Eskom. Scatec also calls it the company's largest commitment to date with a total investment of close to $1 billion. Scatec is the 51% shareholder in the Kenhardt project with local Black Economic Empowerment 49% partner.
AfDB's $1 billion for SA: The African Development Bank (AfDB) has announced an approval from its board for a $1 billion guarantee program in collaboration with the UK Foreign Commonwealth and Development Office (FCDO). This will help the bank increase its lending capacity to support South Africa's Just Energy Transition (JET). It will support projects aligned with the JET investment plan including renewable energy generation and green hydrogen.
Off-grid solar support for Senegal: Senegal's Ministry of Finance has secured international support for an off-grid solar power project under which it aims to procure and install 50,000 off-grid PV powered streetlamps across the rural areas. To back this, the Standard Chartered bank recently signed a Non-Honoring of Sovereign Financial Obligation (NHSFO) with the multilateral credit and political risk insurer Islamic Corporation for the Insurance of Investment and Export Credits (ICIEC). The €103 million project aims to ensure enhanced safety and security in rural Senegal through well-lit streets, extending business hours, encouraging community gatherings and fostering local economic growth.
Green ammonia project in South Africa: In another development in South Africa, Japanese trading company ITOCHU Corporation has signed a memorandum of cooperation (MOC) with Hive Hydrogen South Africa for green ammonia. The duo plans to work on such a plant in Coega in Nelson Mandela Bay in the country's Eastern Cape province. It will be produced using wind and solar power generated green hydrogen. The location is also feasible because of presence of ports in the area to export green ammonia. The MOC was signed in September 2023 during the Tokyo GX Week 2023, according to ITOCHU.