Richards Bay Minerals (RBM) has signed its third Power Purchase Agreement (PPA) with Red Rocket South Africa for Phase 1 of the Overberg Wind Farm, generating 230MW for the company.

Construction of the Overberg Wind Farm, near Swellendam in the Western Cape, is anticipated to begin in the first half of 2025, with the first energy flow targeted for December 2026. The Overberg Wind Farm will be developed and commissioned in two phases. RBM has been allocated 230MW of the project’s total 380MW export capacity.

The Overberg Wind Farm project is expected to significantly reduce RBM’s annual greenhouse gas (GHG) emissions by around 30% (0.7 Mt of CO_₂e). RBM has now entered approximately 500 MW of renewable energy PPAs.

Werner Duvenhage, Managing Director of RBM and Rio Tinto Iron and Titanium (RTIT) African Operations, said: “This announcement comes shortly after the United Nations International Day of Clean Energy on 26 January 2025, which reminds us of the need to transition from our reliance on fossil fuels for the betterment of our planet and people. At RBM, we are taking real action to displace electricity generated from coal with solutions like solar PV, wind, and other renewable technologies.

“The Overberg Wind Farm project represents the biggest project in RBM renewable energy procurement and is a key step towards RBM achieving its commitment in line with the target set by the Rio Tinto Group to reduce its emissions by 50% by 2030, relative to the 2018 baseline, and achieve net zero by 2050.”

“The signing of this PPA for the Overberg Wind Farm is a significant milestone in our ongoing partnership with Richards Bay Minerals. This project will deliver 230MW of clean energy to the South African grid, driving positive environmental impact for RBM while contributing to South Africa’s energy transition. At Red Rocket, we are proud to support RBM’s commitment to a more sustainable future and to be at the forefront of delivering innovative, impactful renewable energy solutions,” said Matteo Brambilla, Chief Executive Officer, Red Rocket South Africa.

ALSO READ:

Richards Bay Minerals signs agreement for an additional 140 MW of renewable energy

In October 2022, RBM signed the Bolobedu Solar PV project, located 120 km east of Polokwane in Limpopo. The 130 MW project, which can generate 300 GWh of energy per annum, is underway.

In June 2024, RBM signed a PPA for the Khangela Emoyeni Wind Farm, a 140 MW project near Murraysburg. The project is expected to deliver 460 GWh of renewable energy per annum to RBM through a wheeling arrangement with Eskom. Construction began in July 2024 and is progressing well.

RBM consumes around 1.8 TWh (terawatt-hours) per annum, with electricity consumption comprising around 1.6 Mt of CO_₂e or 80% of annual GHG emissions.

Together, all three projects are expected to reduce RBM’s annual Scope 1 and 2 emissions by around 60% (1.4 Mt CO_₂e) from a 2018 baseline.