Page 8 - AfrElec Week 39

AfrElec RENEWABLES AfrElec
EIB, Dutch lend to Kenyan solar
KENYA
THE European Investment Bank (EIB) and FMO, the Dutch development bank, are to pro- vide $106mn of loans to finance the construction and operation of two 40-MW solar photovoltaic (PV) plants in Kenya.
The EIB and FMO will each provide $53mn for the two projects, with the remainder of the $147mn total project cost coming from the pro- ject’s privately owned promoters.
These include Denmark’s Frontier Energy and the two Kenyan businessmen: David Langat, chairman of DL Group, and Ayaz Merali, man- aging director of Paramount Bank.
The new Radiant and Eldosol projects, both of which will have 40 MW of capacity, are amongst the first to generate utility-scale solar power in East Africa.
Spain’s Grupotec is the EPC contractor, and construction is anticipated be completed by mid-2020.
The two schemes will diversify Kenya’s elec- tricity supply away from both rain-dependent hydro and fossil fuels, contribute to improving grid stability in Western Kenya and cater for expected increased in energy use in the coming years.
“Kenya, with EU support, is leading the way with visionary climate action. These two new solar schemes funded by the European Invest- ment Bank [EIB], Dutch Development Bank FMO and Frontier Energy from Denmark will provide clean energy for Kenya and demon- strate direct benefits of the close partnership between Kenya and the European Union.” said EU Ambassador Simon Mordue.
The bank’s support accompanies local private lending to the project, as well as equity invest- ment from Frontier. This demonstrates the Kenyan private sector’s ability to invest in green projects.
“Having worked closely with the national and county governments, as well as lenders EIB and FMO, we are proud to see these two landmark renewable energy projects take off for the benefit of Kenyans.” said Lars Jensen of Frontier Energy.
“What makes us even more proud is the level of community engagement that we have expe- rienced where project benefits are shared firstly via local employment and secondly via support for projects identified by the community such as hospital equipment, improvement of local school facilities and boreholes.” added Langat.™
EMISSIONS
Rio Tinto to cut emissions in steel industry
GLOBAL
RIO Tinto, the world’s biggest iron ore miner, is to work with China Baowu Steel Group and Tsinghua University to find new ways to reduce emission in the steel industry.
“The materials we produce have an impor- tant role to play in the transition to a low-car- bon future and we are committed to partnering with our customers and others to find the most sustainable ways to produce, process and market them,” Rio Tinto CEO Jean-Sebastien Jacques said in Qingdao, China.
The three partners are to establish a working group to draw up a research and development plan that will cover new technologies, processes, equipment, logistics and industry co-ordination, Rio Tinto said in a statement.
Rio Tinto’s actions come as environmental- ists and the global climate change movement are putting pressure on mining companies and their customers in the steel industry. Steel manufac- turing uses both iron ore and metallurgical coal, both of which are carbon-intensive to mine and create greenhouse gas (GHG) when burnt.
“China Baowu looks forward to exploring low-carbon metallurgical innovation with Rio
Tinto and Tsinghua University, and building a low-carbon industrial value chain,” China Baowu chairman Chen Derong said in the statement.
The World Steel Association found that its members produced 2.31-2.98bn tonnes of GHGs in 2017, or 7-9% of global emissions, according to 2017 data from the World Steel Association and the BP Statistical Review of Energy.
Other mining and manufacturing companies are taking emissions reduction seriously as well. BHP CEO Andrew Mackenzie said in July that his company, the world’s biggest miner, would invest $400mn over five years to reduce emissions. BHP also said it wanted to reduce the emissions produced when its customers use its
products.
Rio Tinto has been rationalising its global
assets. In 2018, it sold its Rossing uranium mine in Namibia to China National Uranium Corp. (CNUC), while it has also been disposing of its thermal coal mines.
In 2017, it sold its coal assets in the Hunter Valley region in New South Wales to China’s Yancoal.™
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w w w . N E W S B A S E . c o m Week 39 02•October•2019