Appian Capital Advisory has announced the acquisition of a majority stake in Rosh Pinah Solar Park (RPSP) from Emesco Energy, a move aimed at bolstering clean energy supply to its portfolio company, Rosh Pinah Zinc.
As part of the transaction, Appian plans to expand the solar plant’s capacity from 5.4MWp to 16.3MWp, ensuring that 30% of Rosh Pinah Zinc’s energy requirements for its RP2.0 expansion project are met through renewable sources.
Michael W. Scherb, Founder and CEO of Appian, emphasized the significance of this investment in advancing the company’s decarbonization agenda while yielding economic benefits.
“This is an important investment that will support Appian’s decarbonization ambitions and provide tangible cost benefits to Rosh Pinah Zinc while offering attractive risk-adjusted returns to our investors. 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,” he said.
The deal according to the mining-focused investment firm, includes a 15-year offtake agreement, which is expected to reduce Rosh Pinah Zinc’s energy costs by 8% and cut annual carbon emissions by 14,000 tonnes.
“The solar project will supply clean energy to the mine through a fixed nominal rate 15-year offtake agreement, reducing its cost of energy by 8%. RP2.0 will deliver an increase in Rosh Pinah Zinc’s ore production from 0.7 million tons to 1.3 million tons per annum and is now more than 60% completed,” the firm said.
Appian highlighted that the investment in RPSP not only delivers financial benefits but also aligns with its broader clean energy strategy.
“The investment will reduce Rosh Pinah Zinc’s carbon emissions from electricity consumption by 6% and lower its overall carbon emissions by 14 kt a year, equivalent to planting over 20,000 trees. Increasing the capacity of the solar plant to 16.3 MWp will help to optimize the value of the asset,” said Appian.
Emesco Energy’s Managing Director, Rinus Strydom, hailed the investment as a milestone for Namibia’s renewable energy sector.
“This investment by Appian is a pivotal step not only in expanding the RPSP renewable energy plant but also in expanding Namibia’s energy generation sector in general. Emesco looks forward to collaborating with Appian and commends their clear commitment to decarbonize, drive down the cost of energy, and increase energy supply diversity within their portfolio,” he said.
Under the agreement, Emesco Energy will continue to manage the solar plant and oversee its expansion. The project is expected to benefit from Appian’s extensive experience in solar plant operations, particularly in Brazil, where the company is developing 20 solar plants to support its portfolio in the Minas Gerais region.
Appian is also exploring ways to increase Rosh Pinah Zinc’s reliance on solar energy, unlocking additional cost savings and carbon emission reductions. Namibia’s abundant sunshine and high solar energy yields provide an ideal environment for expanding renewable energy projects.
“Appian’s investment in the project and its clean energy supply will also support Namibia’s energy independence, as the country currently relies on almost 3,000 GWh of imports per year, which accounts for approximately 75% of its annual energy usage,” the companies noted in a joint statement.
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