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AfrElec HYDROGEN AfrElec

Exxaro Resources eyes green

hydrogen investment

SOUTH AFRICA SOUTH African minerals and energy group power utility Eskom has, for several years, been
Exxaro Resources (Exxaro) is conducting studies strictly rationing electricity, leaving some areas
on green hydrogen as it seeks a bigger presence without power for up to 10 hours daily. The gov-
in the renewables sector, chief executive officer ernment is also encouraging more investment in
Nombasa Tsengwa has said. green energy.
The Johannesburg-listed company is already Tsengwa said Exxaro hopes to start gener-
a large coal miner and exporter and is developing ating 70MW at a solar farm it is developing in
200MW of solar and wind projects through its eastern Mpumalanga Province. With more
subsidiary Cennergi. On August 18 it released renewables output, the company will enhance
H1 2022 results that show its coal segment con- its usage at its mines in the province as well as
tributed 142% to group EBITDA. those owned by other local companies that may
However, Tsengwa told the South African need decarbonisation capacity.
publication Mining Weekly that the company is With respect to coal, she forecast solid
exploring more renewables opportunities, hence demand as the northern hemisphere winter
the studies into green hydrogen. approaches, especially in Europe with Asia set to
“We know we have to look at it, because you play a big part.
can see countries are already negotiating with “We see very renewed demand from Japan,
one another about which one will be the gener- Korea and Taiwan, which is quite impressive,
ator and which one will then be the offtaker of and I must say that our coal from a pricing point
green hydrogen,” she said. of view has competed very well with the Aus-
Green hydrogen, Tsengwa added, would tralian supplies into that market. And we are
be part of the green energy solution. “[And] ready to see that going on, at least for the next six
therefore we’ve got to look at it, and we’re doing months,” Tsengwa is quoted by Mining Weekly
a lot of studies in this regard. Hopefully, within as saying.
the next year or so, we’ll be able to say whether Exxaro intends to venture into the mining
that’s something that we want to do ourselves, or of future-facing metals such as bauxite, copper
something that we want to partner with others and manganese as well, she said. To that end, the
in doing.” company is pursuing opportunities to invest in
Coal dominates South Africa’s energy mix at bauxite mining in Australia and Guinea in West
80%. However, the generating plants are 35 years Africa.™
old on average and often break down. As a result,

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