Exxaro acquires Gouda Wind Farm and Sishen Solar Facility in R1.8bn deal

Exxaro has signed a R1.8 billion agreement for the acquisition of renewable energy assets in the Northen and Western Cape as it scales its energy solutions.

The acquisition has been completed through Exxaro’s wholly owned subsidiary, Cennergi. It said on Thursday that binding agreements have been signed with Acciona Energía for the acquisition of the 138MW Gouda Wind Farm in the Western Cape and the 75MW Sishen Solar Facility in the Northern Cape.

Additionally, Exxaro has snapped up the company responsible for the operations and maintenance of the two renewable energy assets that were procured under Bid Window 2 of South Africa’s Energy’s Renewable Energy Independent Power Producer Procurement Programme.

The final value of the purchase is expected to range between R1.7bn and R1.8bn, with the power purchase agreement for the Sishen Solar Facility running until 2034 and that for Gouda Wind Farm slated for upto 2035.

Ben Magara, the CEO of Exxaro, said the acquisition was a “positive development in the continued iteration of our commitment to power possibility through a just and inclusive energy” transition.

“It strengthens Exxaro’s position as a diversified natural resources champion, anchored by a strong coal base, a growing energy solutions business, as well as acquisitive growth in energy transition metals. Exxaro is not only investing in cleaner energy but also securing long-term, stable, and sustainable value for all our stakeholders,” said Magara.

Gouda and Sishen were 54.9% controlled by ACCIONA Energía, 25.1% by Celenex, a majority owned subsidiary of Royal Bafokeng Holdings and 10% owned by Soul City Broad Based Empowerment Company. The remaining 10% is controlled by local Community Trusts.

The latest transaction also encompasses Acciona’s 80% stake in Acciona Energy South Africa O&M, an operations and maintenance firm that provides services and parts to both Gouda and Sishen. The disposal by Acciona tallies well with the company’s The move aligns with the Spanish- based Acciona’s “asset rotation strategy” announced in November 2023.

Under this strategy, the company has reached agreements for the sale of more than 1.4GW of renewable capacity in Costa Rica, Spain and Peru worth more than €2 billion. This, said Acciona, highlights “the attractiveness” of renewable energy assets.

On completion, the acquisition of the two renewable energy assets will raise Exxaro’s net operating capacity through Cennergi by 117 MW to about 317 MW. This signifies a “material expansion” of the company’s operational base and “accelerates the execution of Exxaro’s sustainable growth and impact strategy” by bringing the company closer to its 2030 goal of 1.6 GW managed net renewable energy capacity.

“This acquisition adds substantial growth to our portfolio of operating assets, enhances geographical diversification, and marks a significant milestone in our strategic journey to scale Cennergi. Acquiring the O&M company allows us to provide asset management and O&M services to two additional utility-scale renewable energy assets, while also bringing in skilled staff, advanced systems, and expertise to further strengthen Cennergi’s position as a leading asset management and O&M provider in South Africa,” said Leon Groenewald, Exxaro’s executive head for energy.

The transaction is expected to close in the first half of next year, with Cennergi also constructing a further 180MW in net capacity.

BUSINESS REPORT