NOA Group Holdings has signed a 25-year energy supply agreement with Tronox Holdings, a NYSE-listed titanium dioxide pigment manufacturer. This agreement will provide Tronox’s South African operations in KwaZulu-Natal and the Western Cape with 497 GWh of renewable energy.
NOA states this deal significantly increases Tronox’s renewable energy usage to over 70% of its electricity needs. The agreement highlights NOA’s model of aggregating power from various generation facilities across the country to supply its customers.
This model is supported by Eskom’s wheeling framework, which enables NOA to source energy from diverse wind and solar facilities nationwide. This enhances supply reliability and tailors generation profiles to specific geographic and resource characteristics.
NOA Trading CEO Andrew Taylor remarked, “This represents an advancement in renewable energy supply for commercial and industrial clients in South Africa. It’s the largest private wheeling transaction between an aggregator like NOA and a private customer.”
He explained that the agreement separates energy generation from consumption using NOA’s aggregation and trading platform. This setup ensures a more flexible, efficient, and reliable energy supply.
Taylor added that the initiative is bolstered by the issuance of verified International Renewable Energy Certificates, which authenticate the delivery of renewable energy. “This is pivotal in supporting Tronox’s ambitious decarbonization goals and reducing its reliance on fossil fuels,” he said.
NOA is leveraging significant equity investment to solidify its position in the renewable energy market and create strategic partnerships. With R3.2 billion in equity capital from its majority shareholder, Africa Infrastructure Investment Managers, NOA aims to be a reliable renewable energy supplier in South Africa.
“This transaction with Tronox enhances NOA’s strategic standing and capabilities,” said Taylor. The agreement builds on an initial renewable energy procurement contract from March 2022, solidifying Tronox’s leadership in decarbonization. By reducing operational costs and accelerating its decarbonization path, Tronox aligns with the industry-wide move toward lower-carbon operations.
In South Africa, Tronox mines and processes heavy minerals to produce titanium dioxide feedstock, zircon, rutile, and high-purity products. Its KZN Sands operations, including the Fairbreeze mine and central processing complex, are located in Empangeni, KwaZulu-Natal. The Namakwa Sands operation in the Western Cape includes an open-pit mine and concentration plant.
Tronox aims to reduce the Scope 1 and 2 emissions of its operations globally by 35% by 2025, by 50% by 2030, and to become carbon-neutral by 2050. Jennifer Guenther, Tronox’s chief sustainability officer, stated, “Tronox’s solar and wind renewable energy agreements with SOLA and NOA will reduce our global Scope 1 and 2 greenhouse gas emissions by 25% compared to our 2019 baseline.”
“Decarbonization is critical for mining and industrial companies aiming for net-zero targets,” Taylor concluded. “For Tronox, this goal is facilitated by increasing the use of renewable energy. This latest agreement offsets over 500,000 tons of carbon annually.”
Source: Mining Weekly
