NOA has signed a renewable energy supply agreement with Idwala Industrial Holdings that is expected to reduce electricity costs, improve price certainty and support the company's decarbonisation strategy.
Image: Supplied/Idwala Industrial Holdings.
Industrial minerals producer Idwala Industrial Holdings has signed a renewable energy supply agreement with NOA in a move aimed at reducing electricity costs, improving long term price certainty and supporting the company's decarbonisation strategy.
The agreement will see NOA supply renewable electricity through a wheeling arrangement that complements Idwala's existing and planned embedded solar generation facilities, creating a blended energy solution across some of the group's most energy intensive operations.
The deal comes as energy intensive manufacturers continue to face above inflation electricity tariff increases from Eskom, placing pressure on the competitiveness of locally produced industrial minerals against imports.
Wayne Brown, Managing Director of Idwala Industrial Holdings, said the agreement would deliver meaningful long term savings while strengthening the company's operations.
"The wheeling agreement with NOA secures competitively priced renewable electricity across our lime and calcium carbonates operations. The savings this unlocks, relative to the prevailing Eskom Megaflex tariff, represents a sustained reduction in a key component of our cost base," Brown said.
Electricity is one of the largest controllable input costs in the production of lime and calcium carbonate, materials that support industries including steel, construction, agriculture, water treatment, plastics, paints and paper manufacturing.
According to Idwala, the savings generated through the agreement will be reinvested into modernising production facilities, improving energy efficiency, advancing the company's decarbonisation roadmap and supporting skilled employment at its operations.
"Importantly, this initiative reinforces the resilience and competitiveness of our existing operations, which remain at the core of Idwala's business," Brown said.
Karel Cornelissen, Group Chief Executive of NOA, said the transaction reflected the growing role of renewable energy in helping businesses manage rising electricity costs.
Industrial minerals producer Idwala has partnered with NOA to secure competitively priced renewable electricity through a wheeling agreement aimed at strengthening competitiveness and supporting long term investment.
Image: Supplied/Idwala Industrial Holdings.
"Industrial customers such as Idwala are increasingly seeking ways to improve cost predictability and reduce exposure to electricity tariff volatility. As the country's energy market evolves, wheeled renewable energy is becoming a practical tool that allows businesses to secure competitively priced electricity," Cornelissen said.
He added that the partnership demonstrated the benefits of South Africa's evolving electricity market.
"This partnership demonstrates that the opportunities created through electricity market reforms are delivering measurable value for customers, while driving much needed investment in new generation capacity and enabling more flexible procurement options that address real operational challenges around energy costs and long term planning," he said.
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