Appian Capital Advisory, the investment advisor to Appian Natural Resources Funds, will acquire a majority stake in the Rosh Pinah Solar Park (RPSP) from Emesco Energy to supply clean energy to Rosh Pinah Zinc’s mine in Namibia.
The solar plant will supply clean energy to the Rosh Pinah Zinc mine at a fixed nominal rate under a 15-year offtake agreement, ensuring price stability.
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This move not only diversifies the mine’s energy sources but also reduces energy costs by 8%.
It will enhance sustainability by reducing carbon emissions from the mine by 6% and overall carbon emissions by 14,000 tonnes per annum (tpa).
Appian founder and CEO Michael W. Scherb said: “This is an important investment that will support Appian’s decarbonisation ambitions and provide tangible cost benefits to Rosh Pinah Zinc, while offering attractive risk-adjusted returns to our investors.”
Appian plans to boost the solar plant’s capacity from 5.4MWp (megawatt peak) to 16.3MWp to maximise the asset’s value. Emesco Energy will continue operating and expanding the solar facility.
The expanded solar plant will provide 30% of the energy needed for the mine’s expansion project, RP2.0, which aims to increase ore production from 700,000tpa to 1.3 million tonnes per annum (mtpa) and is currently more than 60% complete.
Appian is also considering increasing the mine’s solar energy share to further reduce costs and emissions.
The solar plant will capitalise on cost synergies from Appian’s experience in managing solar plants, including 20 facilities under development in Brazil.
Scherb added: “The project is another important step for Appian’s clean energy strategy following the development of our solar plant operations in Brazil. I look forward to working with our team to deliver on the opportunity this investment offers the business.”
Appian’s investment not only supports the mine’s operations but also contributes to Namibia’s energy independence.
Namibia’s abundant sunshine and high solar yields make it an ideal location for solar energy projects.
The country currently imports around 75% of its annual energy consumption, equating to nearly 3,000 gigawatt-hours per year.
Emesco Energy managing director Rinus Strydom said: “This investment by Appian is a pivotal step not only in expanding the RPSP renewable energy plant but also expanding Namibia’s energy generation sector in general. Emesco looks forward to collaborating with Appian and commends their clear commitment to decarbonise, drive down the cost of energy and increase energy supply diversity within their portfolio.”
