South African renewable energy company NOA Group has finalized a 497GWh energy supply deal with Tronox, a producer of titanium dioxide pigment.
The 25-year energy supply deal will provide Tronox with 497GWh of renewable energy, significantly boosting their green power usage to over 70% of their South African electricity needs.
The deal showcases NOA’s innovative approach to renewable energy supply. Instead of a traditional model that ties energy supply to specific generation sites, NOA acts as an aggregator.
They source power from a diverse fleet of wind and solar facilities across South Africa. Leveraging Eskom’s wheeling model, NOA can distribute this energy nationwide.
Andrew Taylor, CEO of NOA Trading, explains, “This separates energy generation from consumption using NOA’s aggregation and trading platform, ensuring a more flexible, efficient, and reliable energy supply.” This approach caters to Tronox’s specific geographic needs and resource characteristics, offering a tailored renewable energy profile for their operations.
For Tronox, this agreement represents a significant milestone in their decarbonization roadmap.
Jennifer Guenther, Tronox’s Chief Sustainability Officer, highlights the impact: “Tronox’s solar and wind renewable energy agreements with SOLA and NOA will reduce our global scope of one and two greenhouse gas emissions by 25% compared to our 2019 baseline. This is critical progress towards achieving net-zero carbon emissions.”
The deal translates to an annual offset of over 500 kilotons of carbon, demonstrating Tronox’s commitment to transitioning away from fossil fuels and implementing environmentally friendly technologies at its South African sites.
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By transitioning away from fossil fuels, Tronox will contribute to a significant reduction in greenhouse gas emissions in South Africa, aligning with the country’s climate change goals and setting a positive example for other companies in South Africa.
This could lead to a domino effect where other industries strive to reduce their carbon footprint, accelerating the country’s progress towards a more sustainable future.
To ensure the authenticity of the delivered renewable energy and support Tronox’s sustainability goals, the agreement involves the issuance of verified International Renewable Energy Certificates (I-RECs).
This transparency strengthens the partnership and showcases the genuine impact of NOA’s renewable energy solutions.
The deal also signifies a major win for NOA. The significant equity investment from their majority shareholder, African Infrastructure Investment Managers (AIIM), allows them to leverage their position as a reliable renewable energy supplier.
Andrew Taylor, CEO of NOA Trading, underscores the significance of the agreement, stating, “This transaction with a blue-chip offtaker like Tronox enhances NOA’s strategic standing and capabilities in the sector, positioning us as a key player in South Africa’s renewable energy transition and fostering strategic partnerships with established companies.”
He further explains that “this model represents an advancement in renewable energy supply solutions, ensuring more flexible, efficient, and reliable energy supply.”
Jennifer Guenther, Tronox Chief Sustainability Officer, added: “Tronox’s solar and wind renewable energy agreements mark significant progress on our decarbonisation roadmap towards net-zero carbon emissions.”
Together, NOA’s innovative model and Tronox’s commitment to decarbonization set a positive example for the industry, showcasing a successful model for clean energy partnerships worldwide.
The impact of this collaboration extends beyond South Africa, promising a bright future for renewable energy. For further insights regarding this article, refer to this post: https://www.tronox.com/.
