Pele Green Energy’s solar PV power plant will support Glencore-Merafe Venture operations across South Africa, smelting ferrochrome more sustainably.
Despite having a wealth of renewable resources, only around 9% of South Africa’s energy was renewable in 2023.
Glencore and Marafe Resources aim to increase this through a PPA agreement with Pele Green Energy (PGE) that will power Glencore-Merafe Chrome Venture operations across the country.
Gqi Raoleka, CEO of PGE, says: “Glencore Merafe Venture’s approach with this project has shown a dedicated commitment to addressing its Scope 2 emissions from industrial operations, signifying how sustainable practices are crucial to the future of mining.
“This partnership underscores a shared vision for a low-carbon future.
“We are excited to be part of achieving these critical sustainability milestones for this industry.
The Sonvanger Solar PV Power Plant
Pele Green Energy is constructing the Sonvanger Solar PV Power Plant near Theunissen in the Masilonyana municipality.
This small town is home to the only wine estate in South Africa’s Free State and has a small community mainly of farmers and miners.
The 100MW power plant will be designed, financed, built, owned and operated by PGE and the PPA will power ferrochrome operations for 20 years.
Its panels will cover 190 hectares in total and will feature 22km of new transmission infrastructure across 17 properties.
It is the first utility-scale project closed by a sole sponsor and single IPP in South Africa.
PGE estimates that the plant will avoid around 1.82 million tonnes of emissions.
“We are very excited to announce this development at Glencore Merafe Venture,” says Japie Fullard, Glencore Ferroalloys CEO.
“This solar project is in keeping with Glencore’s Purpose of responsibly sourcing the commodities that advance everyday life and supports the Venture’s broader climate strategy.”
About the Glencore-Merafe Chrome Venture
Giant natural resources company Glencore owns a 79.5% stake in the Glencore-Merafe Chrome Venture.
Merafe Resources owns the remaining 20.5% of the venture, created in 2004 to become the largest ferrochrome producer in the world.
The venture operates in five ferrochrome smelters, six chrome ore mines and 22 ferrochrome furnaces.
Clean, reliable and sustainable power will be provided to the venture’s smelters through the Sonvanger Solar PV Power Plant.
What is ferrochrome?
Ferrochrome is an alloy of iron and chromium produced by electric arc carbothermic reduction of chromite.
Most of the global output of ferrochrome is produced in South Africa, Kazakhstan and India.
It is mainly used in the production of steel, particularly stainless steel that uses more than 80% of the world’s ferrochrome output.
Ferrochrome from South Africa is sometimes known as charge chrome, produced from chromium ore with a low carbon content, and most commonly used in stainless steel production.
Due to the large amounts of electricity used in creating ferrochrome, production can be costly both in money and to the environment.
Adhila Mayet, Head of Project Development at PGE, says: “The Sonvanger Solar PV Power Plant is more than just a power generation facility — it is an engine of economic growth and a catalyst for job creation.
“With construction and operational phases creating numerous employment opportunities, the project will benefit local communities, contributing to infrastructure development and long-term socio-economic prosperity.”
